A New GMX Token
The recent passing of Redacted's proposal has paved the way for integrating GMX as the second protocol into Pirex. This integration process is underway and is being thoroughly audited to ensure its smooth launch. The Pirex GMX integration is considered a significant milestone in the platform's development, as it will bring additional functionality and benefits to users.
GMX (website) is a decentralized perpetual exchange that has made waves in the crypto and decentralized exchange space, with a rapidly growing user base and impressive trading volume. It is currently the most popular decentralized perpetual exchange on Arbitrum and Avalanche and has a total value of over $500 million.
Since its inception, GMX has facilitated over $60 billion in trading volume, serving over 90,000 users. This impressive growth is mainly due to GMX's commitment to providing a secure and user-friendly platform for decentralized trading. With its advanced features and capabilities, GMX has become a go-to destination for traders and investors looking to tap into the fast-paced world of cryptocurrency and blockchain.
The GMX protocol comprises three distinct tokens: GLP, GMX, and esGMX. Each token serves a different purpose and provides unique benefits to holders.
$GLP is an index of assets that can be used for swaps and leverage trading. It can be minted using any index asset and burnt to redeem any index asset.
$GMX is the platform's utility and governance token, providing various benefits to holders. GMX tokens can be staked for ETH/AVAX rewards, esGMX, and multiplier points. Multiplier points and esGMX are non-transferable and cannot be sold or traded. Furthermore, multiplier points are lost when GMX is unstaked.
$EsGMX are non-transferable GMX tokens, and they can be staked for rewards like regular GMX tokens or vested to become actual GMX tokens over one year. When vesting is initiated, the average amount of GMX or GLP tokens used to earn the esGMX rewards will be reserved and locked for one year.
Now you must be wondering what Pirex is well. Pirex is a product developed by Redacted that aims to revolutionize how users interact with governance tokens. It creates liquid wrappers that allow for auto-compounding and tokenizing future yield/vote events, making it easier for users to earn rewards from their governance tokens.
One of the key benefits of using Pirex is its ecosystem of applications built on top of Pirex liquid wrappers. These applications further enhance the utility of governance tokens for users and provide yield opportunities exclusive to those using Pirex wrappers. This creates a unique and valuable experience for users, who can access a wide range of services unavailable to traditional wrappers.
Once launched, the partnership between Pirex and GMX would provide liquid wrappers for staked GMX and staked GLP. Not only will Pirex make staking these two assets easier, but it’ll also offer more opportunities for users who wish to reap the rewards of staking while maintaining access to liquidity.
Today is the day, on the 31st of January, Pirex GMX is launched.
The GMX protocol, through its partnership with Redacted and its product Pirex, offers enhanced utility for GMX and GLP token holders. By depositing GMX into Pirex, it is converted into pxGMX, which earns ETH rewards, esGMX rewards, and multiplier points. pxGMX holders can claim these rewards in ETH and pxGMX (esGMX rewards are tokenized as pxGMX).
In addition to GMX, GLP tokens can be deposited into Pirex, converting them into pxGLP. pxGLP earns ETH rewards and esGMX, which pxGLP holders can claim. The tokenization of GMX and GLP into pxGMX and pxGLP increases the composability of these tokens in DeFi, making them more attractive for liquidity providers and increasing demand for GLP.
Users can choose from three modes offered by Pirex, Easy, Standard, and Expert. Each caters to different levels of functionality and types of users. In Standard mode, pxGMX and pxGLP yield in ETH and pxGMX (esGMX yield converted to pxGMX). In Easy mode, pxGMX ETH yield is compounded into more pxGMX, and pxGLP ETH yield is compounded into more pxGLP. In Expert mode, tokenizing future pxGMX and pxGLP yield are possible.
With GMX, esGMX, and GLP all being held in the same account and all GMX and esGMX being permanently staked, users will benefit from enhanced liquidity while sharing in the multiplier points accrual. The one-way conversion of GMX and esGMX to pxGMX will create a black hole for GMX, reducing GMX sell pressure and incentivizing new GMX deposits. PxGMX provides GMX stakers and GLP holders access to greater liquid yield through the pxGMX/ETH liquidity pool to be bootstrapped by Redacted.
The GMX token is primarily present on the Arbitrum network. However, it is essential to note that the GMX, esGMX, and GLP tokens on Avalanche are not interchangeable or tradeable with those on Arbitrum.
As part of Pirex's ongoing integration efforts, the GMX, esGMX, and GLP tokens on Arbitrum will be integrated into Pirex as the first step, with a potential integration into Avalanche later.
It is also worth mentioning that Pirex will not exercise any governance power beyond the GMX/esGMX tokens directly owned by Pirex. However, in the event of any future bribable gauges, Redacted has planned for a delegate system to be implemented, allowing Pirex users to vote on the gauges to maximize returns for Pirex users.
In conclusion, GMX, GLP, and esGMX can be deposited into Pirex and converted into pxGMX and pxGLP. The tokenization of these assets into pxGMX and pxGLP allows for greater composability in DeFi, enabling tokens to be paired with pxGLP in liquidity pools and benefit from yield generated by GLP and trading fees. With all GLP, GMX, and esGMX held in the same account and GMX and esGMX permanently staked, users will benefit from enhanced liquidity and shared multiplier points accrual. The conversion of GMX and esGMX to pxGMX creates a black hole for GMX, reducing sell pressure and incentivizing new GMX deposits. Pirex provides users access to greater liquid yield with standard, accessible and expert modes.
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