Cover Product Spotlight: GMX

4 min read

GMX Exchange is a decentralized perpetual trading platform for top cryptocurrencies.

Cover policies for GMX can be purchased from the “Popular DeFi Apps” diversified cover pool from within the Neptune Mutual marketplace. Users can also provide liquidity to the Popular DeFi Apps cover pool, to earn stablecoin rewards resulting from the policy fees paid by cover purchasers.

GMX is committed to improving the user experience for our community, and we are constantly exploring new ways to achieve this goal. Offering coverage solutions is an important part of that vision. The innovative approach to DeFi insurance by Neptune Mutual aligns well with our values of reliability and security, and we believe it will bring significant benefits to our users.

said Jonezee, Communications Coordinator at GMX.

Edward Ryall, Co-founder of Neptune Mutual, expressed his excitement about collaborating with GMX to offer their community the advantages of integrating parametric cover protection for their digital assets.

We are eager to work closely with GMX and educate their community on the benefits of this innovative approach.

he said.

To get started, visit

About GMX Exchange#

GMX Exchange is a decentralized perpetual trading platform for top cryptocurrencies. Launched in September 2021, GMX allows traders to take long and short positions on perpetuals by depositing collateral. With up to 50x leverage, zero price impact trades, limit orders, and low swap fees, GMX has become a popular choice among DeFi traders. The DEX is currently live on Arbitrum and Avalanche. 

What Makes GMX Exchange Unique?#

GMX has several unique features that set it apart from other decentralized derivatives markets. One of the most notable is its native GLP pool. The GLP pool is a multi-asset liquidity pool that facilitates all trading, including both leveraged positions and simple swaps. The liquidity in the GLP pool consists entirely of user deposits, who earn fees in return for providing their assets. All platform fees are split between GMX and GLP token holders, with 30% going to GMX stakers and 70% to GLP holders.

As the GLP pool provides liquidity for leveraged trading, GLP holders are the counterparty to the traders - they earn when traders lose, and vice versa.

Traders on GMX benefit from zero price impact trades and deep liquidity. They pay a trading fee of 0.1% of the position size to open and close a trade and a "borrow fee" based on the utilization of the asset. Trader’s profit is paid out in USDC (for shorts) or the pair's other token (for longs) at settlement.

GMX ‘V2’ is expected to launch in April 2023. This significant upgrade to the protocol will introduce a new liquidity model alongside GLP, with isolated pools to make the trading of countless synthetic assets possible. 

Financials and Tokenomics#

GMX has two tokens: the GLP token and the GMX governance and utility token. GMX tokens can be staked to benefit from fee-sharing. GLP is the LP token for providing liquidity to the GLP liquidity pool. The fee for buying GLP depends on what's in the liquidity pool, and is cheaper for index assets that are demanded by the market but are underrepresented in the pool.

CoinMarketCap's statistics indicate that as of March 2, 2023, the price of $GMX was $73.09. GMX is expected to have a maximum supply of 13.25 million (but this could hypothetically be increased through a vote by the DAO). The total supply is currently ~8.2 million tokens, with 85% of those staked. Staked GMX tokens earn three types of rewards: escrowed GMX (esGMX tokens) that come from liquidity incentives and vest gradually, variable ETH and AVAX APR from the 30% of protocol fees generated, and multiplier points that boost APRs and encourage long-term staking.


The GMX platform prioritizes the security of its users' funds and data. The platform has undergone several security audits by a leading blockchain security firm, ABDK Consulting, to ensure the safety of its smart contracts and infrastructure.

The market prices on GMX are based on Chainlink's oracles and an aggregate of prices from leading volume exchanges. This makes positions relatively safe from liquidations due to random ticks on a single automated market maker. While security audits are a crucial step toward safeguarding against potential threats, it is essential to understand that they do not guarantee complete protection. This is primarily because there are several attack vectors that may not fall outside the scope of security audits.

GMX on Social#

Users can connect with members of the GMX protocol community through the following social channels:

Twitter | Telegram | Announcements | Discord | Github