GMX launches ADA, BCH, DOT, and ICP perpetual swaps
Four new markets are live for trading on GMX: DOT, ADA, BCH, and ICP. Users can now trade these tokens at up to 50x, while enjoying self-custody, deep liquidity and lightning-fast onchain execution.
GMX is introducing four new altcoin markets on Arbitrum: ICP/USD (Internet Computer), DOT/USD (Polkadot), ADA/USD (Cardano) and BCH/USD (Bitcoin Cash). These synthetic markets are backed by BTC-USDC pools, and liquidity will be automatically allocated to their underlying GM pools via GLV [BTC-USDC].
Exec Summary
GMX lists ADA, BCH, DOT, and ICP perpetual swaps
All four markets have been added to GLV [BTC-USDC], auto-optimising their available liquidity
Buy GLV to provide liquidity on GMX and earn fees with maximised capital efficiency
Low-latency price feeds for the assets are provided by Chainlink Data Streams
Synthetic GM Markets
The trading markets for ADA, BCH, DOT, and ICP are oracle-based synthetic perpetual swaps. These are perpetual futures that allow traders to speculate on the future price of the asset, without any expiration date. Unlike traditional futures contracts, which have a set expiry date, perpetual futures can be held indefinitely.
These markets allow users to easily trade ADA, BCH, DOT, and ICP at up to 50x on GMX, while benefiting from self-custody and unrivalled onchain execution speed.
Each market reliably tracks the index price of its designated token, thanks to GMX’s integration of Chainlink Data Streams price oracles. However, the markets are all backed by a liquidity pool containing BTC-USDC rather than the traded token. This is what is referred to as a synthetic market on GMX. Spot trading for these tokens is not available.
Auto-optimising Liquidity with GLV
The ADA, BCH, DOT, and ICP markets have each been integrated in GLV [BTC-USDC], the dynamically optimising GMX Liquidity Vault (GLV). GLV automatically redistributes liquidity to its markets based on their utilisation, to help meet trader demand. So, if more traders trade on a market, more liquidity will become available for it.
GLV can be seen as an enhanced version of the GLP pool from GMX V1. It acts as an index for GM pools, dynamically reallocating liquidity to those pools that are most actively used. Consequently, GLV provides liquidity providers with a balanced product that delivers strong risk-adjusted returns and maximises capital efficiency.
How to Provide Liquidity to GLV or 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 an index of 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
Exposure as a Liquidity Provider
Providing liquidity in DeFi comes with rewards as well as risks. As a liquidity provider in any of GMX’s innovative GM liquidity pools, you are:
exposed to price movements of the underlying asset(s)
subject to trader PnL, as long as the pool is not precisely 50:50 balanced between Longs and Shorts. Adaptive funding rates typically bring 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, or for providing liquidity on GMX. You can exit your GM or GLV position whenever you desire.
For a comparison of the performance of the GM pools against other benchmark LP positions, please refer to the GMX Dune Dashboard.
Connect with the GMX community:
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Github: https://github.com/gmx-io
Documentation: https://docs.gmx.io/