Try Quests to earn cryptoFlash Bounty: GMX Protocol Overview
Flash Bounty: GMX Protocol Overview
Introduction
GMX is a decentralized spot and perpetual exchange that supports low swap fees and zero price impact trades.
Trading is supported by a unique multi-asset pool that earns liquidity providers fees from market making, swap fees and leverage trading.
GLP consists of an index of assets used for swaps and leverage trading. It can be minted using any index asset and burnt to redeem any index asset. The price for minting and redemption is calculated based on (total worth of assets in index including profits and losses of open positions) / (GLP supply).
For Arbitrum, holders of the GLP token earn Escrowed GMX rewards and 70% of platform fees distributed in ETH
Method
I used the arbitrum.core.fact_event_logs table to track count of swaps transactions, Stake/UnStake and leveraged position transactions and unique users count for all of those over the past month and three past month, also calculated the amount of gained Fees by platform over time and in total. I used following filters to find leveraged positions and Stake/UnStake activities.
when origin_function_signature in ('0xe70dd2fc') then 'Short Position'
when origin_function_signature in ('0x332e0382','0xc9874170') then 'Long Position'
when origin_function_signature in ('0xf3daeacc','0xef8c5994','0x364e2311','0x53a8aa03') then 'Stake'
when origin_function_signature in ('0x078580d2','0x64f64467','0xabb5e5e2','0x0f3aa554') then 'UnStake'
At the end, I tried to compare all of three type actions in the past 90 days, but you can ==change== it by above tape to your own period time choice.
✍🏻 Conclusion
Over the past 30 days GMX platform was affected by Nitro Upgrading and the amount of gained fees volume was decreased.
Over the past 3 month activity on GMX (as same as other Arbitrum ecosystem platforms) were effected by two important event on Arbitrum, Odyssye campaign and Nitro Upgrading.
On the both of assessing period time Staking and Long position trading were the most popular than other activities amongst the GMX users.
Most of users are tend to tradeoff USDC to WETH and vise versa.
But generally speaking, the GMX exchange has a predetermined asset price that is sourced by an oracle. There is zero price effect from either long or short positions in GMX. Thus, the earnings of future traders are the liquidity offered by GLP holders. The GMX dex will give you GLP tokens in exchange for Ethereum, Bitcoin, and stablecoins. Liquidity providers lose money if traders win money. Trading firms have identified a security hole in GLPs and might wipe out the funds of everyone holding them if they decide to exploit it.
Therefore, in my opinion, futures trading and liquidity providing on GMS is so risky for who had no familiarity with that,
About:
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Author: HaM☰d
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Discord: 0xHaM☰d#8391
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Twitter: @arjmandi_hamed
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Email: h_arjmandi2012@yahoo.com
GMX Protocol Overview
GMX, a perp protocol, has been attracting attention recently for the massive fee revenue being generated. Examine and compare the protocol over recent days and weeks on Arbitrum. \n
How has the protocol been performing over the past month? Three months? How is it absorbing these massive fees? \n
Note any overarching themes or narratives that you find.
Hey there 👋!
Firstly, I appreciate you sticking with it until the conclusion.
I’m Hamed, Ph.D. In Civil Engineering and interested in data science.
I've made many similar dashboards and visualizations since I started at Flipside in January.
Please have a look at my various contact information and let me know what you think.
:telescope: Findings:
In this sections I track the swaps transactions by unique users and calculated daily spent fees by users over the past 30 days.
On Sep 6th, the count of swaps transactions, unique users, swap volume and consumed fees were in the highest level over the past 30 days, that it was because of Arbitrum Nitro upgrade, that can observed the activity of swaps on GMX platform were raised.
Swapping the WETH to USDC and vise versa consumed most amount fees volume in $USd with more than 34% & 18.7% of total amount of consumed fees, respectively.
:telescope: Findings:
In this section I tried to assess the Stake and UnStaking transactions by GMX platform.
Nitro Upgrading effected the Stake/UnStake users activities too.
On the late of August, from 26 till 29, the highest volatile was happened.
More than $127K, fees gained by staking activities, in contrast $27.8k gained by UnStaking activities, over the past month.
Compared to the minority of UnStake bidders, more than 80% of GMX customers prefer to Stake.
:telescope: Findings:
Stake and UnStaking transactions by GMX platform was assessed in the current section.
As of mentioned, Odyssye campaign and Nitro Upgrading affected the Stake/UnStake activities too.
On the late of August, from 26 till 29, the highest volatile was happened.
On July more than $876k fees consumed by Stakers GMX users effect of Odyssye campaign, that was the daily highest cosumed fees volume on the history of GMX platform.
More than $1.36m, fees gained by staking activities, in contrast $413k gained by UnStaking activities, over the past 3 month. Compared to the minority of UnStake bidders, more than 76% of GMX customers prefer to Stake.
:telescope: Findings:
Top 10 most traded based on swap transactions count are shown in the first three charts in this section.
As expected swap from WETH to USDC and vise versa are the in the first place in daily top 10 most swapped.
Other charts in this section shows the leveraged position trading on GMX platform.
Totally, as of perpetual positions transactions count in the above can observed that number of these leveraged positions on GMX platform over time increased and overall trend-line is positive.
As we see, there is a close difference between these 2 position types on all days over time, so that more than 61% of tx count are belongs to Long positions and rest to Short positions.
In the other hand, against to count of leveraged transactions, gained fees by platform was decreased over the last 30 days.
Also, we understood that more than 72% of total leveraged position transactions gained by Long positions and rest of that gained by Short petitions.
As mentioned can results that decreasing in the fees amount was because of ==Nitro upgrading==.
:telescope: Findings:
In this section as final section, I compared all three activities (Swapping, Leverage position trading & Liquidity providing) on GMX over the past 3 months.
More than 57% of total count of transactions were belongs to leverage position trading.(34.6% long positions vs. 22.8% short positions).
Most amount of Fees volume gained by Staking transactions with more than 28.6% of total gained fees, that followed by long position future trading with 26.8% of gained fees volume.
The lowest count of transactions and amount of gained fees volume are belongs to UnStaking actions.
You can assess this metrics on the past 30 days by ==change== the period date time on the header tape and hit the Apply All Parameters to observe the results.