GMX launches a Single-Token Pool for SOL/USD, allowing single-sided liquidity provision
A new single-sided SOL/USD [SOL] pool has been introduced on GMX. This new GM pool allows LPs to provide pure SOL liquidity to the SOL/USD market, earning fees while maintaining 100% exposure to SOL.
Exec Summary
GMX introduces a GM: SOL/USD [SOL] Single-Token Pool
The new single-sided SOL/USD [SOL] pool exists alongside the current dual-asset SOL/USD [SOL-USDC] pool
The SOL/USD [SOL] Single-Token Pool offers GMX’s numerous integrators a new composable, highly correlated reward-earning product
Mint GM: SOL/USD [SOL] now to provide single-sided SOL liquidity and earn fees
How the SOL Single-Token Pool works
A Single-Token Pool has been created for GMX’s SOL market on Arbitrum: SOL/USD [SOL]. This is the fourth single-sided GM pool launching on GMX, following the successful introduction of:
BTC/USD [WBTC] - ($82 Million in liquidity)
ETH/USD [WETH] - ($56 Million in liquidity)
GMX/USD [GMX] - (just launched)
The GM: SOL/USD [SOL] pool allows liquidity providers to support trading on the SOL/USD market by supplying only SOL tokens as liquidity, rather than both SOL and USDC. This enables LPs to avoid avoid holding a portion of their position in stablecoins, thus sidestepping the rebalancing and impermanent loss that typically affect standard dual-token pools.
The new liquidity pool complements the existing SOL-USDC pool that backs the SOL/USD market. Traders can select which pool to use based on which offers the best execution for their trade.
Benefits of Single-Token Pools
Why is GMX introducing additional Single-Token Pools? The single-sided GM liquidity pools offer several unique benefits:
Enable users to earn fees from supporting trading while maintaining their full crypto exposure
Allow GMX to compete with lending markets, attract a new audience of liquidity providers, and unlock even greater market liquidity
Provide integrations with an attractive, composable, and highly correlated yield-generating product
Click here to read more about the nature of GMX’s Single-Token Pools, and the opportunities they unlock.
How to Provide Liquidity to a GM Pool
Choose your desired liquidity pool in the drop-down menu under Buy GM or under ‘Pools’. Alternatively, select GLV to provide liquidity to GMX’s new auto-optimising liquidity vaults, which offer balanced exposure to various GM pools.
Click the Buy button
Enter the amount you would like to supply to support trading on GMX and earn rewards with
Click the blue Buy button, and confirm the token allowance and onchain transaction
Risk & Reward as an LP on GMX
Please note: As a liquidity provider in any of GMX’s GM liquidity pools, you are:
exposed to the price movements of the underlying asset(s)
subject to trader PnL, when the pool is not precisely 50:50 balanced between Longs and Shorts. GMX’s adaptive funding mechanism typically brings the pool back to balanced Open Interest, resulting in only a small (and generally positive) effect on LPs from trader PnL in the long term.
earning fees from market-making and trading activity at the pool’s listed rate (estimates are based on the performance of the past seven days). These fees are auto-compounded into the pool, automatically increasing the value of your GM tokens.
There are no lock-up periods for staking GMX tokens for rewards, or for providing liquidity to GM or GLV to earn fees. Users can exit their positions on GMX whenever they want.
For a comparison of the performance of the GM pools against common benchmark LP positions, see the GMX Dune Dashboard here.
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