Last Updated: March 2026
GMX is a decentralized perpetual futures exchange on Arbitrum and Avalanche. Its innovative GLP liquidity model lets LPs earn from traders’ losses while providing deep liquidity for leveraged trading.
History
Launched by a pseudonymous team in 2021, first on Arbitrum. GMX quickly became the largest DeFi derivatives platform by TVL. GMX V2 introduced isolated pools for better risk management. See DEX guide and L2 guide.
How GMX Works
- GLP pool: LPs deposit ETH, BTC, USDC, etc. into the GLP pool. This pool acts as the counterparty to all traders
- Traders: Open leveraged positions (up to 50x) using GLP liquidity
- Zero-slippage: Trades execute at oracle prices (Chainlink) — no AMM slippage. See Chainlink
- Fee revenue: 70% of fees go to GLP holders, 30% to GMX stakers
See trading guide and Injective comparison.
Tokenomics
GMX: 13.25M total supply (very low). Revenue sharing: 30% of all fees to GMX stakers. GLP: Liquidity token earning 70% of fees. Real yield — not token inflation. See tokenomics.
Pros and Cons
- Pro: Real revenue sharing — 30% of all fees to GMX stakers
- Pro: Very low supply (13.25M) with no inflation
- Pro: Zero-slippage trading via oracle prices
- Pro: Largest DeFi perpetuals by TVL
- Con: GLP holders take the other side of trades — if traders win big, GLP loses
- Con: Competition from dYdX, Hyperliquid, Vertex. See dYdX guide
Frequently Asked Questions
Is Gmx safe to use?
Gmx has been audited but all DeFi carries smart contract risk. Use established protocols and start with small amounts.
Is Gmx a good investment?
Evaluate based on real revenue, TVL growth, and token utility. Best as a small DeFi allocation alongside BTC and ETH.
How do I use Gmx?
Connect a Web3 wallet (MetaMask or Phantom) to the protocol’s website. Start with small amounts to learn the mechanics.
