Decentralized trading platform GMX has recently experienced a significant surge in annualized yields for major tokens, reaching up to 75% following the activation of Arbitrum incentives. This platform enables users to engage in spot and perpetual futures trading for a variety of major tokens. Notably, it boasts low transaction fees and has successfully settled over $136 million in trades within the past day.
High Yields Attract Investors to GMX
The yields for trading pools on GMX are currently highly rewarding, with XRP pools offering nearly 75% returns. Similarly, pools for Solana’s SOL and Dogecoin (DOGE) are not far behind, with yields up to 65%. Even Bitcoin (BTC) pools have seen a significant increase, offering yields over 28%, which stands as the highest among decentralized finance (DeFi) platforms. Meanwhile, Ether (ETH) pools have also seen a rise, with yields jumping to 19%.
Liquidity Provision and Rewards
The liquidity for these pools comes from individual GMX Market, or GM, pools. Liquidity providers contribute to these pools and, in return, receive a portion of the fees generated from various services such as leverage trading, borrowing, and swaps.
Arbitrum’s Incentive Program Boosts GMX
These enticing rewards have become possible because GMX was the largest beneficiary of Arbitrum’s ARB token grant. This grant was decided by a community vote in October. As part of a short-term incentives program (STIP), several projects on the Arbitrum blockchain collectively received $40 million in ARB tokens. This initiative aims to draw new investments to the highly regarded blockchain.
Over a 12-week span, 12 million ARB tokens will be doled out across three incentive categories on the decentralized trading platform GMX. The first category rewards those who provide liquidity to trading pools.
Trading and Development Incentives
Following the liquidity incentives, trading incentives will soon commence. These will reward users who trade the most volume across various tokens on the platform. Finally, the grant incentives will be awarded, targeting developers who create products that enhance the GMX ecosystem.
Conclusion
The decentralized trading platform GMX is making strides in attracting users and liquidity providers with its high yield offerings and incentive programs. These developments not only benefit participants but also contribute to the growth and innovation of the DeFi space. As GMX continues to distribute rewards and encourage trading activity, it solidifies its position as a leading platform in the decentralized trading arena.
