Data Decoded: GMX

Our new Dune Dashboards track KPIs for GMX, a spot and margin trading dApp on Arbitrum and Avalanche. This document complements the dashboard and explains the metrics, guiding investors to data-driven decisions about the protocol.

GMX Introduction

GMX offers spot and leveraged trading with zero price impact through its oracle pricing model, which means it is not technically a perpetual exchange even though it is often referred to as such. GMX is the governance token and GLP is the LP token, which acts as the counterparty to GMX traders. Leveraged traders borrow assets from the GLP basket with up to 30x exposure. When a leveraged long position is opened, the token being longed will be borrowed from the GLP basket to be used as collateral. When a leveraged short position is opened, the trader borrows stablecoins from the GLP basket to be used as collateral. We covered the mechanics of GMX in-depth in a recent research report, so check that out if you need to be brought up to speed.

GMX, esGMX, & GLP Staking on Arbitrum and Avalanche

GMX stakers earn: 30% of protocol fees paid out in ETH or AVAX depending upon the chain the tokens are staked, escrowed GMX (esGMX) that can either be restaked to boost your stake weight or vested over a 12 month period, and multiplier points that increase a staker’s share of protocol revenue. GLP token holders, or GLP LP’s, earn 70% of protocol revenue in the form of ETH or AVAX for Arbitrum and Avalanche respectively.

Key Metrics

Stake Rate: This shows the percentage of the total GMX supply that is currently staked. When it is trending up, a larger percentage of the supply is illiquid which implies investor confidence in the protocol. We included numerous queries around the stake rate and supply of GMX to provide investors with numerous ways to view the GMX supply dynamic.