GMX
Crypto Overview
Overview and Intended Utility
GMX is a decentralized perpetual exchange that launched on Arbitrum in September 2021 and expanded to Avalanche in January 2022. The GMX token serves as the protocol's governance token and allows holders to earn a share of platform fees.
Primary Functions
The platform enables perpetual trading with up to 30x leverage, spot trading, and real yield generation through protocol fee sharing. GMX aims to solve issues common in centralized exchanges like lack of transparency and counterparty risk.
Business Model & Revenue
The protocol generates revenue through trading fees (0.1% for spot trades, 0.1% for leverage trades), borrowing fees, and liquidation fees. These fees are distributed to GMX stakers and GLP liquidity providers. The model is transparent and based on actual trading activity rather than token inflation.
Actual Usage & Adoption
GMX has demonstrated significant real-world adoption with over $100B in cumulative trading volume. The protocol maintains consistently high daily trading volumes and has a strong presence in the DeFi ecosystem. Development activity remains robust with regular updates and improvements.
Token Distribution & Governance
The token distribution shows a relatively fair allocation with no excessive concentration among founders. There are vesting schedules for early investors and team members, with transparent unlock schedules. The majority of tokens are distributed among community members and liquidity providers.
Crypto Impact
To assign a comfort level investing in GMX from a halal perspective we need to determine whether it has a net positive or negative impact.
Towards this end, the table below is used to tally all the positive and negative considerations our members can think of related to GMX.
If you don’t see something that should be listed, positive or negative, feel free to submit your own contribution using the button “Contribute”.
We will review your contribution for accuracy before publication.
Importantly, you can review listed contributions and vote on which one you think has the greatest impact, positive or negative.
You only have one vote per asset so use it wisely.
You can change your vote if you change your mind.