Anyone can provide liquidity on GMX and earn fees from market making, swaps and leverage trading. The isolated GM pools and capital-efficient GLV vaults tend to offer LPs outstanding returns:👇
🔹Example: GMX's LINK/USD market on Arbitrum has recently had around 80% utilisation, and currently offers ~22.30% APY.
The LPs in this pool have earned:
- 19% APR compared to benchmark, over the last 3-month period. All of it coming from trading fees, while trader P&L remained neutral.
- 44% APR compared to benchmark, over the last 6-month period. Out of these, 23% of APR comes from fees, and the rest comes from trader losses.
With liquidity providers earning 63% of all trading fees, and the pools experiencing lower impermanent loss than typical AMMs, the $GM pools generally outperform typical Benchmark LP positions (e.g., Uniswap V2's 50/50 rebalancing pools)
Concerned about exposure to trader P&L? GM liquidity pools tend to maintain balanced Open Interest, thanks to GMX V2's Adaptive Funding mechanism and balancing incentives for LPs & Traders.
Consider moving your liquidity to GMX to earn market-leading returns as well.