GMX is a decentralized exchange that offers spot and perpetual trading with low swap fees and trades that don’t affect prices. It operates using a multi-asset pool that generates revenue from market making, swap fees, and leverage trading, providing fees to liquidity providers.
With GMX, users can take advantage of price changes by placing either long or short orders with leverage of up to 30x. This guide will demonstrate how to purchase GMX and participate in staking through the GMX protocol.
GMX aims to provide an easy-to-use and accessible platform for users to participate in the cryptocurrency market. With its low fees and ability to execute trades with minimal impact on prices, GMX aims to attract novice and experienced traders.
Staking your tokens on the GMX protocol helps secure the network and provides a way for users to earn rewards and increase their GMX holdings.
Whether you are a seasoned trader or just getting started in the cryptocurrency market, GMX provides a unique opportunity to trade, stake, and grow your assets. So, if you’re interested in taking advantage of the exciting world of cryptocurrency, consider buying $GMX and staking your tokens on the GMX protocol today.
Steps to Stake GMX
Here are the steps to stake GMX and earn rewards for users:
Ensure you have a MetaMask wallet
This wallet is highly regarded and widely used, as it allows users to secure their tokens, interact with decentralized apps, and keep track of various tokens within a single wallet.
Obtain some $GMX tokens
Presently, $GMX tokens can be bought on leading centralized exchanges or through the Uniswap Dex.
To acquire $GMX tokens using Uniswap, navigate to the Uniswap Dex and connect your MetaMask wallet. Connect to the Arbitrum network, and use ETH as the currency to exchange for $GMX.
In the ‘From’ tab, choose ‘ETH.’
In the ‘To’ tab, select ‘GMX.’
If GMX is not visible, you will need to import its contract address, which is 0xfc5a1a6eb076a2c7ad06ed22c90d7e710e35ad0a
Click on ‘Confirm Swap’
Then approve the transaction through MetaMask
Your $GMX tokens will then appear in your MetaMask wallet.
Remember that you will need to have some ETH on hand to cover the gas fees when you make transactions. Now that you have acquired $GMX tokens, you can head to the staking portal to start delegating your tokens.
Access the GMX Staking Portal
Access the GMX Staking Portal and link your Metamask wallet. If you’re unsure how to select a validator, look at the section below for guidance.
Link your wallet, then Press the “Stake” button Input the amount you want to stake. Click on “Approve GMX”. Confirm the transaction, and you are Done.
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What is the Source of my Staking Rewards?
Stakers of GMX receive three types of benefits:
- Trading Fees: 30% of the platform’s fees, including swap fees, position opening/closing fees, and borrowing fees, are paid to Arbitrum stakers in ETH.
- Escrowed GMX (esGMX): esGMX tokens can be converted into GMX within 12 months or re-staked to earn similar rewards as GMX. The emission of esGMX is unlimited and backed by the maximum GMX supply.
- Multiplier Points (MP): MP enhances the fee rewards, which are released to GMX stakers at a fixed 100% APR every second linearly. MP can also be compounded by re-staking.
The rewards received from staking GMX can provide long-term benefits to users by giving them a share of the platform’s fees and allowing them to earn additional rewards through esGMX and MP. This incentivizes stakers to hold onto their GMX and contribute to the stability and security of the network, ultimately leading to the growth and success of the platform.
Whether re-staking esGMX and MP or converting esGMX into GMX, stakers have multiple options for maximizing their rewards and participating in the platform’s development.
What Are the Ways to Utilize Escrowed GMX (esGMX)?
The Escrowed GMX (esGMX) token can be utilized in two ways: being staked for rewards similar to regular GMX tokens or being vested to turn into actual GMX tokens over the course of one year. Staking each Escrowed GMX token will result in the same rewards of Escrowed GMX and ETH/AVAX as a regular GMX token.
However, it is important to note that esGMX is not intended to be transferable except in the case of a full account transfer. Therefore, it is not recommended to purchase esGMX from the market or over-the-counter transactions, as they will not be able to be vested.
Also, it is important to remember that the rewards from staking esGMX will only be available once the token has been vested and converted into actual GMX tokens. Until then, the esGMX will remain locked and unable to be traded or transferred.
So, it is crucial to consider this before deciding whether to stake or vest esGMX. Furthermore, it is also essential to follow the guidelines set by the platform to ensure a smooth and successful vesting process.
Conclusion
Participating in staking on GMX is an excellent method of generating actual returns on your cryptocurrency. It is currently one of the most popular protocols available and is rapidly becoming a preferred choice for those seeking staking rewards.
Staking on GMX allows you to help secure the network, making it a win-win situation. As more people join the network, the higher the rewards will be, so it’s a good idea to get involved while it’s still gaining popularity.
Moreover, the process of staking on GMX is user-friendly, making it accessible to individuals of all experience levels. Overall, staking on GMX is a highly attractive investment option for anyone looking to earn a passive income on their cryptocurrency holdings.
About Author
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Christopher is a highly skilled writer who possesses a deep understanding of the interplay between financial markets and technology. His goal in writing is to deliver expert analysis through written content that is easy for readers to comprehend.
With a keen interest in cryptocurrencies and the blockchain industry, he has been among the earliest contributors to the Coin Decimal Crypto Blog.
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