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An in-depth analysis on GMX brought by Staking Rewards' Research Memo: https://www.stakingrewards.com/journal/gmx-valuation-staking-the-perps-dex-of-the-future/

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GMX is riding into a tailwind of capturing a share of the growing demand for decentralized derivatives. It is a decentralized perps exchange supporting both spot and margin trading with low fees and zero slippage on Arbitrum and Avalanche, with a high staking ratio of 80% .

Investment highlights & Competitive advantages:

1. Unique value proposition targeting at traders (zero slippage, low fees, 30x max leverage)
2. Token design that leads to a 80% staking ratio --> secures the protocol
3. (GMX & GLP) token stakers get to claim all trading fees in addition to token rewards!
4. Project catalysts: synthetic asset tradings being audited! Customized AMMs to be launched in GMX V4!
5. Chain-agnostic: currently on Arbitrum and Avalanche, and the protocol will continue to explore chain expansions!

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Token Utilities & Staking Rewards

Staking GMX tokens

As the governance token, GMX recently listed on several CEXs such as Binance, BitMart, and Kucoin. Apart from the governance function, GMX can be staked to unlock rewards in three ways:

1. Fees paid in ETH or AVAX: 30% of platform fees (incl. swap fees, fees of opening and closing positions, and borrowing fees).
2. Escrowed GMX (esGMX): esGMX tokens can be converted into GMX over a 12-month period or be re-staked to earn rewards in a way similar to GMX. the emission of esGMX has no maximum limit but is always backed by the max GMX supply.
3. Multiplier Points (MP): MP boosts your fee rewards which is released to GMX stakers every second linearly at a fixed 100% APR. MP can also be re-staked via compounding.

Staking GLP tokens

GLP token is the liquidity providing token which we covered in the supplier-side section above. Minting GLP tokens stakes them automatically and provides the following staking rewards:

1. ETH or AVAX rewards: 70% of platform fees.

Escrowed GMX (esGMX): Other than what’s described above, for GLP holders, esGMX will be distributed to them to reach a 20% total target APR, subject to the monthly esGMX emission cap.