GMX introduces ORDI and STX perpetual futures markets on Arbitrum
The ORDI/USDC and STX/USDC markets on GMX V2 are synthetic markets for perpetual swaps. The underlying tokens of both GM pools are WBTC and USDC. Early liquidity providers benefit from ARB incentives.
GMX is excited to announce the listing of two prominent Bitcoin-related assets: Stacks (STX) and Ordinals (ORDI). Perpetual futures markets for STX/USDC and ORDI/USDC are now live on GMX V2 on the Arbitrum blockchain.
The new STX and ORDI perpetual swap markets allow Arbitrum users to trade these two Bitcoin-related assets on margin. DeFi liquidity providers can earn fees by supplying wBTC or USDC to either GM pool, which supports trading for these assets on GMX.
GMX aims to provide highly liquid on-chain trading markets for all leading crypto assets, as part of our decentralised finance ecosystem and liquidity infrastructure. The introduction of markets for STX and ORDI aligns GMX with the expanding Bitcoin DeFi and BRC-20 movement.
Chainlink Data Streams is providing price feeds for the Stacks and Ordinals assets. Data Streams are the low-latency oracle feeds optimised for Perp DEXes, for which GMX is the exclusive launch partner.
Liquidity & market parameters
The STX market is an STX/USDC market, supported by a WBTC/USDC GM liquidity pool. WBTC and USDC serve as the pool tokens on the long and short sides, respectively.
The ORDI market is an ORDI/USDC market, similarly backed by a WBTC/USDC GM liquidity pool.
As these are synthetic markets – with the underlying assets in the pool not identical to the traded assets – spot trading for ORDI and STAX is not available on GMX.
Liquidity providers can now deposit into either GM liquidity pool, to support trading on GMX and earn 63% of all the fees generated by the pool.
Bonus ARB incentives will be airdropped weekly to early liquidity providers to the pools backing these new markets. These liquidity incentives — part of GMX’s ongoing Arbitrum STIP-Bridge campaign, which also lowers trading fees on GMX V2 — help bootstrap sufficient market liquidity.
As a liquidity provider to one of GMX’s GM markets, you:
1. are exposed to the price movements of the underlying assets.
2. earn fees from the pool at the listed APY rate. These fees are auto-compounded, automatically increasing the price of your GM tokens.
3. are exposed to traders’ Profit & Loss, when the pool isn't 50/50 balanced between longs and shorts. Due to funding incentives, pools tend towards balanced Open Interest.
Chaos Labs has suggested initial listing parameters for these new GM markets to the GMX DAO.
Synthetic & fully-backed GMX markets
GMX V2 offers two types of markets: synthetic markets and fully asset-backed markets. An example of a fully-backed market is the current ETH-USD perpetuals market backed by ETH-USDC. An example of a synthetic market is the existing DOGE/USD perpetuals market, which is backed by ETH-USDC as the pool assets on the long and short side.
To understand the essential differences between synthetic and fully-backed markets, please refer to the protocol documentation about GMX V2's varying market types.
About Bitcoin Ordinals
Ordinals allow data to be inscribed into individual satoshis on Bitcoin. They use a logical ordering system called ordinal theory to give each individual satoshi a unique number. This enables arbitrary data such as images, videos, audio, and text to be stored in individual satoshis. BRC-20 tokens essentially consist of ordinal inscriptions with a specific type of text embedded in them.
The use of ordinals has led to the creation of entirely Bitcoin-native NFTs that do not require layer-2 solutions, do not necessitate changes to the Bitcoin protocol, and are backwards compatible with the network.
About Stacks Protocol
Stacks is a prominent open-source Bitcoin Layer-2 blockchain network that empowers smart contracts and decentralised applications to utilise Bitcoin as a secure base layer.
The STX token serves as the network's native cryptocurrency, used for transaction fees and deploying smart contracts. Additionally, it can be "stacked", enabling users to take part in the consensus mechanism and earn Bitcoin rewards for upholding the Stacks network.
Join the GMX community:
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Documentation: https://docs.gmx.io/
Disclaimer
This announcement is for informational purposes only and does not constitute legal, financial, or investment advice. GMX or any other parties make no warranties or representations regarding the accuracy, completeness, or suitability of the information presented and will not be liable for any losses, damages, or adverse consequences that may arise in relation to this announcement.
It is strongly advised to undertake your own due diligence and seek advice from relevant professionals before making decisions based on this announcement.