GMX, the most popular decentralized exchange on the Arbitrum layer 2 network, launched its version 2 model Thursday, attracting just over $1.2 million for its liquidity pools. GMX allows users to trade spot and perpetual futures through an on-chain interface at low fees, and its recent popularity can be attributed to the rise of the Ethereum-based Arbitrum.
V2 expands the list of tradable assets to include alternative currencies such as Dogecoin (DOGE) at lower fees than version 1 in an effort to attract trading activity and drive revenue growth. Liquidity on V2 is provided through individual GMX Market, or GM, pools, where liquidity providers are rewarded with a cut of fees earned from services such as leverage trading, borrowing and swaps. Initial GM pools include Solana (SOL), XRP (XRP), Litecoin (LTC), Dogecoin and Arbitrum (ARB) on the Arbitrum network alongside SOL, XRP, LTC and DOGE on the Avalanche network.
GMX locks up over $447 million on Arbitrum and $74 million on the Avalanche network, data from DefiLlama shows. The platform has traded over $117 billion worth of tokens and generated $184 million in fees for its Arbitrum users alone, data shows. The introduction of V2 could help GMX’s prospects among traders in an increasingly competitive market, and attractive rewards and increased revenues could drive value to GMX’s namesake governance tokens GMX (GMX).
GMX was able to offer traders a service for betting on price movements of major tokens, such as Bitcoin (BTC) and Ether (ETH), using leverage, said GMX. GM pools for DOGE are paying out as much as 45% annualized, while the Solana pool is paying 47%. The rates are subject to change.