Binance lists GMX in the Innovation Zone: What is GMX?

GMX Binance

GMX Binance

Binance, the world's leading crypto exchange has recently listed GMX in its Innovation Zone.

GMX boasts itself as a leading decentralised spot and perpetual contract trading platform that facilitates low swap fees and zero-impact price trades.

The platform allows its users to leverage their trades and stake GMX's native GMX token, making it an attractive yield-earning platform for crypto investors.

What is GMX?

Described as a decentralised derivative exchange on Arbitrum, an Ethereum layer 2 network, and Avalanche (AVAX), GMX aims to combine the principles of advanced decentralised finance with the concept of a cryptocurrency exchange.

The protocol offers the ability to spot trade on multiple stablecoins and cryptocurrencies, including ETH, WBTC, DAI, USDC, USDT, and FRAX.

Spot trading refers to the process of buying and selling cryptocurrencies at current market prices to maximise profits in real time.

The platform's perpetual spot market also permits users to long and short major tokens with up to 30x leverage.

Going long generally refers to an investor anticipating that an asset's price will increase. Shorting is when an investor predicts that an asset's price will fall.

From the GMX's website:

Trading is supported by a unique multi-asset pool that earns liquidity providers fees from market making, swap fees, and leverage trading. Dynamic pricing is supported by Chainlink Oracles and an aggregate of prices from leading volume exchanges.

The GMX platform deploys what's known as GLP, a shared liquidity mechanism, which acts as a pool of all collective tradable assets. Trades are later conducted via the current Oracle price and are secured by Chainlink.

What is the GMX token?

The GMX token acts as a governance token for the GMX protocol. By staking GMX, users can earn a portion of GMX's revenue in ETH or AVAX.

Alongside that, staking GMX further enables users to earn escrowed GMX (eGMX), which can later be used to earn rewards in ETH.

The token has been listed on leading cryptocurrency exchanges, including Binance and FTX.

Learn more about other cryptocurrencies such as Quant (QNT), Ravencoin (RVN) and LABS.

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