mev-toolkit/MEV_by_chains/MEV_on_Arbitrum/gmx

gmx

tl; dr

• decentralized spot and perpetual futures exchange, built on arbitrum and avalanche
• promised features: minimal liquidation risks, low costs, simple swap, capital efficiency, demand drivers
• gmx enables traders to open up to 50x leveraged long or short positions via borrowing from a multi-asset pool known as $GLP (that earns lp fees through market making, swap fees, leverage trading, and asset rebalancing).
• $GLPs function as the counterparty, as it accrues values when traders loses, and devalues when traders win. $GLP accrues 70% of all trading fees, while stakers of the protocol governance token, earn 30%. $GLP is also emerging as a form of collateral, with lending protocols integrating the LP token into their product offerings.
• native token $GMX functions as a governance, utility, and value-accrual token. all collected fees fo to the $GMX fee pool, which issues fee rewards (e.g., ETH/AVAX).
• a floor price fund helps ensure liquidity in the $GLP pool, plus a reliable stream of $ETH rewards fo $GMX stakers
• protocol's revenues come from: swap fees, trading fees, execution fees, liquidation fees, and borrow fees
• protocol risks: liquidity risks, market/oracle manipulation, centralization risk, scalability risk

in this dir

• oracle abuse
• tokenomics

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