GMX
Crypto Overview
Overview
GMX is a decentralized perpetual exchange that enables leverage trading of cryptocurrencies. The GMX token serves as the protocol's native token, used for platform governance and fee distribution.
Purpose and Utility
GMX token provides holders with platform fee revenue sharing, voting rights on protocol decisions, and staking rewards. The platform itself facilitates leveraged trading with up to 30x leverage on various cryptocurrency pairs.
Business Model
The protocol generates revenue through trading fees and liquidation fees. A portion of these fees is distributed to GMX token holders who stake their tokens. The platform employs a unique multi-asset vault system for liquidity provision.
Real World Adoption
GMX has gained significant traction in the DeFi space, with consistent trading volume and total value locked (TVL) growth. The protocol operates on both Arbitrum and Avalanche networks.
Development Activity
The project maintains active development with regular updates and improvements to the protocol. The team consistently implements community feedback and governance proposals.
Key Concerns
The primary concern from an Islamic finance perspective is that the core business model revolves around leveraged perpetual futures trading, which typically functions as a zero-sum game where gains and losses are purely transferred between traders without underlying asset exchange.
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.