Anyone can provide liquidity on GMX and earn from 3 revenue streams: market-making, swaps, and leverage trading. The GM pools and yield-maximising GLV vaults offer top-tier returns. Take the LINK/USD market on Arbitrum, for example:
đč $11.2M liquidity, currently at ~90% utilisation
đč 25.23% Fee APR this month
đč An additional 6.72% APR vs. benchmark over the last 3 months
GM liquidity providers earn 63% of all trading fees. And the GM pools face lower impermanent loss than typical AMMs. As a result, the pools consistently outperform benchmark LP positions (like a Uniswap V2-type 50/50 rebalancing pool).
GMX V2 generally has balanced OI, thanks to incentives for LPs and traders as well as an Adaptive Funding mechanism. So exposure to trader PnL as an LP is limited, and generally positive in the long term.
Providing liquidity on swap AMMs like Uniswap is an outdated strategy. Move your liquidity over to GMX to earn significantly better returns đ
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