Learn about GMX Staking
You can view the current live staking APR at the top of this page.
Staked GMX receives three types of rewards:
- Fees from trading: 30% of platform fees (swap fees, fees of opening and closing positions, and borrowing fees) are paid to stakers in ETH or AVAX.
- 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.
- 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.
For more info on Escrowed GMX and Multiplier Points, please see the Rewards page.
The key risks stakers face are:
- Smart contract risk
- Lock-up risks – Users may think its a good idea to lock it up for long periods of time but may not fully appreciate the downside risk
GMX basically lets users put on Long, or Short orders with leverage up to 30x to take advantage of price volatility and earn profits.
GMX is founded by a completely anonymous team. However, it is known that the team has a track record of two other successful protocol launches in XVIX and Gambit.
Due to their unique value proposition, GMX is positioning itself to be a leader in this derivatives product offering space because of two main points:
- Strong value accrual to token GMX holders and liquidity providers, denominated in ETH
- A non-inflationary tokenomics model: GMX liquidity model (GLP) doesn’t require inflationary (farm and dump style) token incentives
GMX exchange operates a dual token system. The GMX and GLP tokens are the native tokens of the GMX ecosystem.
- GMX token is the Governance and main utility token of the GMX ecosystem.
- GMX token staking program offers holders an opportunity to earn passive income through their tokens. Holders can stake their GMX tokens and earn interests of over 10% APR (at the time of this writing) on Arbitrum one and Avalanche blockchain. 30% of the fees generated on the platform are used to reward stakers.
- GLP is the GMX Liquidity Provider token.
- GLP stakers receive 70% of the platform fees in ETH and esGMX. This is a token that incentivises users to deposit their assets as liquidity on the GMX exchange and in return they mint GLP. Once a user returns their GLP to redeem their tokens, the GLP will be burnt.
GMX has a forecasted maximum supply of 13.25 million tokens, which can be increased if there are more products launching and liquidity mining is required. But that will be subjected to a governance vote before any changes.
Here is how the 13.25M of $GMX token will be distributed:
- 6 million GMX from the XVIX and Gambit migration.
- 2 million GMX paired with ETH for liquidity on Uniswap.
- 2 million GMX reserved for vesting from Escrowed GMX rewards.
- 2 million GMX tokens to be managed by the floor price fund.
- 1 million GMX tokens are reserved for marketing, partnerships and community developers.
- 250,000 GMX tokens were distributed to the team linearly over 2 years.
The $GMX token has a special feature, called the Floor Price Fund. This fund is denominated in $ETH and $GLP and grows in two ways:
- GMX/ETH liquidity is provided and owned by the protocol, the fees from this trading pair will be converted to GLP and deposited into the floor price fund
- 50% of funds received through Olympus bonds are sent to the floor price fund, the other 50% is used for marketing
The floor price fund helps to ensure liquidity in GLP and provides a reliable stream of $ETH rewards for those who staked $GMX