GMX and GNS may not MAKE it!

TheRedKnight
Coinmonks
6 min readJan 5, 2023

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Part II-

Read Part I of innovative DeFi products here

GMX and GNS are the fan favourites in crypto Twitter due to the real yield narrative, but their designs have some fundamental flaws.
In this article, I will review those and introduce a better protocol!

The issue

Let me be honest GMX and GNS are the protocols that gave many retail investors the sense to stay away from inflationary farming yields and embrace yield in non-inflationary Bluechips/Stablecoins. It opened new doors of "Yield farming" in a more sensible way, and even other protocols started building on top of these protocols.

Even if I am not a great fan of many protocols built on top of GMX and many GMX forks popping up, LPs are getting reliable, non-inflationary yields.

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GMX and GNS are more like trading platforms, with a “pinch” of Casino like mechanism, but not "actual" AMMs. As they are oracle based products, they cannot do price discovery. Even if everyone preaches about these products, they can't be the future of AMMs, but they can be excellent trading platforms.

Another issue that I was facing was the high trading fees. GMX charge 0.1% of the position size when opening and…

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TheRedKnight
Coinmonks

Anything Related to crypto is always under my radar. But none is financial advice. As a guy who dreams decentralized world, let my face remain unknown.