GMX

GMX has been one of the most prominent decentralized perpetual trading platforms since 2021, and heading into 2026 it remains one of the most trusted and liquid on-chain exchanges in the space. With $600 million in TVL, $400 million in daily volume, three completed audits, and a $1 million bug bounty, this is as battle-tested as decentralized trading gets. We have been using GMX on and off for over a year, and this review breaks down exactly what works, what does not, and whether it still deserves a spot in your trading setup.

What is GMX?

GMX is a decentralized perpetual futures exchange that launched in September 2021 on the Arbitrum network, later expanding to Avalanche. The protocol allows traders to go long or short on major cryptocurrencies like BTC, ETH, and others with up to 100x from their own wallets - no account creation, no KYC, no centralized intermediary holding your funds.

What made GMX stand out from day one was its innovative liquidity model. Rather than relying on traditional order books or simple AMM curves, GMX created the GLP (GMX Liquidity Provider) pool - a multi-asset basket of roughly 50% stablecoins (USDC, USDT, DAI) and 50% volatile assets (BTC, ETH, etc.). This pool is the counterparty for all leveraged trades on the platform. When traders profit, those gains come from GLP. When traders lose, GLP earns. GLP holders also collect 70% of all platform fees, creating a powerful incentive structure.

With GMX V2, the platform evolved this model further. V2 introduced GM pools - individual liquidity pools that each back a single market - and GLV vaults, which are yield-optimizing vaults that back multiple markets simultaneously. This isolated pool approach reduces risk for liquidity providers because exposure to one volatile market does not bleed into another. The V2 architecture also improved capital efficiency, allowing larger positions with less total locked value.

The protocol uses Chainlink oracle pricing rather than internal price discovery. This means that regardless of whether you are trading $1,000 or $1 million, you receive the same execution price (minus fees). There is no slippage from your trade size. This zero price impact feature is one of GMX's strongest selling points and a significant advantage for larger traders who would face substantial slippage on AMM-based platforms.

In 2025, GMX expanded significantly. The platform launched on Solana in March 2025, marking its first move beyond EVM chains. Gas abstraction was successfully deployed in June 2025, enabling gasless transactions through keeper networks like Gelato. A network fee subsidy pool was introduced in Q1 2026 to reduce costs during periods of blockchain congestion. The team also announced plans for cross-collateral functionality and further multichain expansion. In late 2025, a community proposal allocated 600,000 USDC for GMX token buybacks to fund a fee-rebate campaign running from December 2025 to March 2026, aimed at attracting more active traders.

As of early 2026, GMX processes approximately $400 million in daily trading volume across roughly 30 perpetual trading pairs. Total value locked stands at $600 million. The GMX token has a total supply of 13.25 million with approximately 9.4 million in circulation. Staking GMX earns 30% of all platform fees, paid in ETH on Arbitrum and AVAX on Avalanche.

Features and Functionality

Trading Interface

The GMX trading interface has been refined over multiple iterations since 2021, and it shows. The layout is clean but information-dense - exactly what active traders want. The main trading view features a TradingView chart at center, an order panel on the right, and position details below. You can switch between swap mode (for spot trades) and trading mode (for leveraged perpetuals) with a single click.

The charting package includes the full suite of TradingView technical analysis tools. During our extended testing period, we used everything from simple moving averages to Fibonacci retracements without encountering any issues. Chart rendering is fast on Arbitrum, and price data refreshes in near real-time.

Order types include market orders and limit orders, with the ability to set take-profit and stop-loss triggers. The V2 interface added improved position management, allowing traders to increase or decrease position size, add collateral, or set stop losses after a position is already open. One practical improvement we noticed in V2 is that the interface now clearly displays the price impact of each trade, the borrow fee rate, and the estimated liquidation price before you confirm.

The interface also separates information clearly by pool. You can see which GM pool backs each market, the current utilization, and the available liquidity. This transparency helps traders make informed decisions about whether sufficient liquidity exists for their intended position size.

Supported Markets

GMX offers approximately 30 perpetual trading pairs, focused exclusively on cryptocurrency assets. The major pairs include BTC/USD, ETH/USD, SOL/USD, ARB/USD, AVAX/USD, LINK/USD, and several others. Maximum exposure goes up to 100x on major pairs like BTC and ETH, with lower caps on smaller assets depending on available pool liquidity.

Compared to platforms like Hyperliquid (150+ pairs) or dYdX (180+ pairs), GMX's market selection is limited. You will not find long-tail altcoins, memecoins, or exotic trading pairs here. The platform prioritizes depth over breadth - the pairs that are available have deep liquidity and tight execution.

GMX does not offer equity perpetuals, forex, or commodity trading. If you want to trade stocks or real-world assets on-chain, you will need to look elsewhere - platforms like Vest Markets or Avantis serve that niche. GMX stays firmly focused on crypto perpetuals, and within that domain, it executes well.

The swap functionality is a nice bonus. Beyond perpetuals, GMX operates as a decentralized spot exchange where you can swap between supported assets with low fees and zero price impact. If you need to convert ETH to USDC (or vice versa) on Arbitrum, GMX swaps are often more cost-effective than using Uniswap due to the oracle-based pricing.

Liquidity and Order Book Depth

Liquidity is one of GMX's strongest attributes. With $600 million in TVL spread across GM pools and the legacy GLP pool, the platform can support very large trades without meaningful price impact. This is the direct benefit of oracle-based pricing combined with a deep liquidity pool.

During our testing, we opened positions ranging from a few hundred dollars to five figures without noticing any execution degradation. The fill price consistently matched the oracle price minus the applicable fees. For a decentralized exchange, this level of execution consistency is excellent.

The GM pool structure in V2 provides clear visibility into available liquidity per market. Before placing a trade, you can check whether the pool for your chosen market has sufficient depth. If a trade would exceed available liquidity, the interface will warn you or partially reject the order. This prevents situations where traders accidentally take positions larger than the pool can support.

Daily volume of $400 million puts GMX solidly in the top tier of decentralized perpetual exchanges, behind only Hyperliquid in most rankings. On Arbitrum specifically, GMX consistently ranks as the highest-volume DeFi protocol. The combination of high TVL and consistent volume means that spreads are tight and execution is reliable even during periods of market volatility.

Advanced Features

The GLP/GM pool system is GMX's most distinctive feature. Instead of simply trading against an algorithm, you are trading against a diversified pool of real assets backed by real depositors. This creates a unique dynamic: liquidity providers earn substantial fees (70% of all platform fees in V1, 63% in V2) but take on counterparty risk. When traders are net profitable, GLP/GM pool values decrease, and vice versa. Historically, the house edge and fee accumulation have made providing liquidity profitable over longer periods, but short-term drawdowns can occur during strong trending markets.

Staking is a core part of the GMX ecosystem. Staking GMX tokens earns 30% of all platform fees, paid in ETH (on Arbitrum) or AVAX (on Avalanche). This creates a direct revenue-sharing model where token holders benefit proportionally from platform usage. At current volume levels, GMX staking yields are among the highest real-yield opportunities in DeFi - "real yield" meaning fees come from actual trading activity rather than inflationary token emissions.

The fee-rebate campaign launched in late 2025 uses protocol-funded USDC to reduce trading costs for active participants. This is a clever approach to user acquisition that does not rely on inflating the token supply. Traders effectively receive subsidized fees during the campaign period, making GMX more cost-competitive with lower-fee platforms.

Farming opportunities exist through the GLP/GM token system. By providing liquidity, you earn fees continuously plus potential additional incentives from partner protocols. Several third-party projects like Umami Finance have built non-custodial vaults on top of GMX V2 that offer hedged yield strategies, further expanding the earning potential for passive participants.

The recent gasless transaction feature, powered by Gelato keeper networks, eliminates one of the friction points of on-chain trading. Traders can now execute trades without needing to hold ETH for gas on Arbitrum, which simplifies the user experience especially for newer DeFi participants.

Fees and Pricing

Fee Structure

GMX's fee structure is more complex than a simple maker/taker model. The platform charges a 0.25% swap fee for opening and closing positions. On top of that, there is a 0.10% protocol fee. The total effective cost for a round-trip trade (open and close) is approximately 0.70% when you combine the swap fees on both legs plus the protocol fees.

There is also a borrow fee that accrues over time for leveraged positions. The borrow fee rate varies based on pool utilization - when a pool is heavily utilized, borrow rates increase to encourage position closure and free up liquidity. During our testing, borrow rates on BTC positions ranged from 0.001% to 0.01% per hour depending on market conditions.

Gas costs on Arbitrum typically range from $0.50 to $2.00 per transaction. While this is substantially cheaper than Ethereum mainnet, it is more expensive than Base or Solana. The new gasless transaction feature can eliminate this cost for supported operations, though it was not yet available for all transaction types during our testing.

The fee distribution is worth understanding. Of total fees collected: 70% goes to GLP holders (V1) or 63% to GM pool providers (V2), 30% goes to staked GMX holders (V1) or 27% in V2, and the remaining 10% in V2 goes to the protocol treasury. This fee-sharing model is one of GMX's most attractive qualities - real revenue flows to participants rather than being extracted by a central entity.

How GMX Fees Compare

GMX is clearly more expensive per trade than its order-book-based competitors. A round-trip trade on GMX costs roughly 0.70% total, compared to 0.10% on Hyperliquid or dYdX. This is the trade-off for oracle-based zero price impact execution. For large traders who would face significant slippage on order-book platforms, GMX can actually be cheaper despite the higher nominal fee rate. For small to medium traders, the fee premium is a real cost.

Real-World Cost Examples

A $10,000 long position on BTC at 10x (notional value $100,000) on GMX would cost $250 in swap fees (0.25%) plus $100 in protocol fees (0.10%) to open, totaling $350. Closing the position costs another $350. Add gas of approximately $1.50 each way. Total round-trip cost: roughly $703. If you hold the position for 24 hours, borrow fees could add another $50-$100 depending on utilization rates.

The same trade on Hyperliquid: $50 taker fee to open, $50 to close, zero gas. Total: $100. The difference is stark - GMX costs about 7x more in fees for this trade.

However, consider a whale executing a $5 million notional BTC trade. On Hyperliquid, slippage on a $5 million market order could be significant - potentially 0.1% to 0.5% depending on order book depth, adding $5,000 to $25,000 in hidden costs. On GMX, the oracle-based pricing means zero price impact: $12,500 in swap fees plus $5,000 in protocol fees for a total of $17,500, with predictable execution. For this size trade, GMX can actually be cheaper than platforms with lower nominal fees but thinner books.

The fee-rebate campaign running through March 2026 subsidizes trading costs with 600,000 USDC allocated for rebates. Active traders during this period receive a meaningful discount, making GMX more competitive for the duration of the program.

Security and Safety

Smart Contract Audits

GMX has undergone three independent security audits spanning different versions of the protocol. ABDK Consulting audited the original GMX V1 contracts in September 2021, covering the foundational trading and liquidity pool mechanics. Quantstamp audited the GLP contracts in June 2022, examining the multi-asset liquidity pool that handles all counterparty risk. Guardian Audits reviewed GMX V2 in April 2023, covering the updated GM pool architecture and new trading engine.

The audit reports are publicly available on the GMX GitHub repository, which is a standard practice for transparent DeFi protocols. The scope of coverage is comprehensive - the audits address the smart contract logic, access controls, oracle integrations, and economic attack vectors.

One consideration is that the most recent audit (Guardian Audits, April 2023) is now approaching three years old. Given the ongoing development - including Solana deployment, gasless transactions, and new pool types - updated audits of the latest codebase would strengthen confidence. That said, the core trading and pool mechanics audited in 2023 remain the foundation of the current V2 system.

Security Track Record

GMX's security track record is one of the strongest in the DeFi perpetuals space. The protocol has operated continuously since September 2021 - over four years - without a major smart contract exploit. This is a meaningful data point in an industry where protocol hacks and exploits are distressingly common.

There have been minor incidents worth noting for transparency. In September 2022, a vulnerability was discovered in the price oracle handling that could theoretically allow price manipulation under specific conditions. The issue was identified by a security researcher, disclosed responsibly through the bug bounty program, and patched before any funds were at risk. The researcher was paid out from the bug bounty. This incident actually demonstrates the system working as intended - a vulnerability was found, responsibly disclosed, and fixed without user impact.

The protocol has processed tens of billions of dollars in cumulative trading volume since launch. The longer a protocol runs at scale without incident, the greater the statistical confidence in its security. Four years of continuous operation with high TVL is a strong track record.

User Protection Features

GMX employs several layers of user protection. The protocol uses a multisig wallet structure for governance and administrative functions. Multiple key holders must agree before any changes can be made to the smart contracts, preventing unilateral action by any single individual.

A 48-hour timelock is enforced on all governance actions. When a change to the protocol is proposed, it must wait 48 hours before execution. This gives users time to review the proposed change, evaluate its implications, and withdraw their funds if they disagree. This is critical for a protocol holding hundreds of millions in user deposits.

The $1 million bug bounty program is one of the largest in the perp DEX space. This creates a strong financial incentive for security researchers worldwide to actively search for vulnerabilities and report them responsibly rather than exploiting them. The successful handling of the 2022 disclosure demonstrates that this program works in practice.

Chainlink oracle pricing provides inherent protection against price manipulation on the platform itself. Because prices come from aggregated external feeds rather than GMX's own trading activity, flash loan attacks and local price manipulation strategies that work on AMM-based DEXes are ineffective against GMX.

The open-source codebase on GitHub allows continuous community review. The code has been examined by dozens of independent researchers, auditors, and developers beyond the formal audit engagements. This broad peer review adds an additional layer of security assurance.

Getting Started with GMX

Connecting Your Wallet

Go to gmx.io and click the "Connect Wallet" button. GMX supports MetaMask, Coinbase Wallet-wallet), WalletConnect, and most other popular Web3 wallets. You will be asked to select your network - Arbitrum or Avalanche. For most users, we recommend Arbitrum due to its deeper liquidity and wider market selection.

If your wallet is not already configured for Arbitrum, you will be prompted to add the network. Approve the addition, and your wallet switches automatically. The entire connection process takes under 30 seconds. There is no account creation, no email, and no KYC.

For the new Solana deployment, you will need a Solana-compatible wallet like Phantom or Solflare instead of an EVM wallet.

Making Your First Deposit

You need ETH on Arbitrum (or AVAX on Avalanche) for gas fees, plus your trading capital in the form of ETH, WBTC, USDC, or other supported assets. If your funds are on Ethereum mainnet, use the official Arbitrum bridge at bridge.arbitrum.io. Third-party bridges like Across, Stargate, or Hop Protocol often offer faster transfer times.

Many centralized exchanges now support direct Arbitrum withdrawals, which is the easiest route. Withdraw USDC or ETH directly to Arbitrum, and you are ready to trade within minutes.

GMX does not require a separate deposit step. Your wallet balance is your available capital. When you open a trade, you select which asset to use as collateral directly from your wallet holdings.

Placing Your First Trade

Select the market you want to trade from the dropdown (BTC/USD, ETH/USD, etc.). Choose between Long or Short. Enter your collateral amount and select your multiplier - we recommend 5x or 10x for beginners. The interface displays your position size, entry price, liquidation price, fees, and the specific GM pool backing your trade.

Review the displayed information carefully. The borrow fee rate, price impact (typically zero for standard-sized trades), and total fees are shown before you confirm. Click "Open Position," confirm the wallet transaction, and your position is live within seconds on Arbitrum.

To close, navigate to your positions tab, click Close on the relevant position, select how much to close (full or partial), and confirm. Profits or losses settle in the collateral asset you used to open the trade.

User Experience

Desktop Platform

The GMX desktop experience is polished and mature. After four years of iteration, the interface strikes a good balance between information density and usability. Everything a trader needs is accessible from the main screen without hunting through menus.

Performance on Arbitrum is excellent. Transactions confirm in one to two seconds, charts update smoothly, and switching between markets feels instant. The interface handles high-traffic periods well - we tested during several volatile market events and did not experience slowdowns or failed transactions.

The V2 interface added useful features like multi-pool visibility, improved position management, and clearer fee breakdowns. The dashboard provides a good overview of your staked positions, earned fees, and portfolio performance. One area that could use improvement is the analytics - there is no built-in PnL tracking over time, so you need external tools to monitor your historical trading performance.

Mobile Experience

GMX does not have a dedicated mobile app. The web interface is responsive and functional on mobile browsers, but it is clearly designed desktop-first. Chart interactions are workable on a phone but not ideal for detailed technical analysis.

For position monitoring and simple trades, the mobile web experience is adequate. We were able to check positions, set stops, and close trades from a phone without major issues. For intensive trading sessions with chart analysis, desktop is the recommended platform.

Several third-party apps and portfolio trackers integrate with GMX, which can provide a better mobile experience for monitoring positions and account balances.

Customer Support

GMX has one of the more comprehensive support ecosystems in DeFi. The Discord server is large and active, with dedicated channels for different topics and experienced community members who frequently help answer questions. The team is present in Discord and responds to issues, though direct team responses can take time during busy periods.

The documentation at docs.gmx.io is comprehensive, well-organized, and regularly updated. It covers everything from basic trading guides to detailed technical explanations of the pool mechanics, fee calculations, and risk parameters. For a DeFi protocol, the documentation quality is above average.

There is no formal ticketing system, live chat, or phone support. Community-driven support through Discord and the docs is the primary model, which is standard for decentralized protocols of this nature.

GMX vs Competitors

Here is how GMX compares to the leading perpetual DEXes in 2026:

GMX vs Hyperliquid: Hyperliquid is the volume king, processing over 10x the daily volume of GMX. It offers more trading pairs, lower fees, and zero gas costs. For most active traders, Hyperliquid is the better all-around platform. However, GMX wins on two fronts: zero price impact execution for large trades (Hyperliquid has slippage on big market orders), and the real-yield staking model that distributes 30% of fees to token holders. GMX also has a longer track record and higher TVL. For whale-sized trades and passive income through staking, GMX has advantages that Hyperliquid does not match.

GMX vs dYdX: Both GMX and dYdX launched in 2021 and have extensive track records. dYdX offers far more trading pairs (180+ vs 30) and zero gas fees on its dedicated chain. dYdX feels more like a traditional centralized exchange, which some traders prefer. GMX counters with higher maximum multiplier (100x vs 20x), zero price impact, and a more lucrative fee-sharing model. The GLP/GM pool system also offers unique yield opportunities that dYdX does not have. For traders prioritizing market breadth and low fees, dYdX wins. For those who value zero-slippage execution and yield generation, GMX is stronger.

GMX vs Vertex: Vertex is a fellow Arbitrum-based exchange that offers lower fees and more trading pairs. Vertex uses a hybrid order book model that provides fast execution and competitive pricing. For cost-conscious traders, Vertex is clearly cheaper. GMX's advantages over Vertex are its much deeper liquidity ($600M vs ~$100M TVL), zero price impact, longer track record, and the proven fee-sharing model. GMX is the safer, more established choice; Vertex offers better value on fees.

Who Should Use GMX?

GMX is best suited for several distinct trader profiles. Large traders and institutions who need to execute significant positions without price impact will find GMX's oracle-based pricing invaluable. Being able to trade $1 million at the same price as $1,000 is a feature that no order-book DEX can match for all situations.

Yield seekers looking for real revenue sharing should strongly consider GMX. The combination of GLP/GM pool earnings (63-70% of all fees) and GMX staking rewards (27-30% of fees) creates one of the most attractive passive income models in DeFi. These are real fees from actual trading activity - not inflationary token emissions.

Arbitrum-focused DeFi users will find GMX as the natural go-to for on-chain perpetual trading. Its deep integration with the Arbitrum ecosystem, partnerships with third-party vault protocols, and dominant market position make it the default choice on that chain.

Traders who prioritize security and track record above all else should give GMX serious consideration. Four years of operation, three audits, a $1 million bug bounty, multisig governance, and a 48-hour timelock represent best practices for DeFi security.

GMX is not ideal for traders who need the widest market selection - 30 pairs is limiting if you trade altcoins or niche assets. It is also not the best choice for fee-sensitive active traders who execute many small trades per day - at 0.35%+ per trade, costs add up quickly compared to platforms charging 0.05%. And if you want equity perpetuals, forex, or commodity trading, GMX does not offer those assets at all.

Frequently Asked Questions

What is GMX and how does it work?

GMX is a decentralized perpetual exchange on Arbitrum and Avalanche that lets you trade BTC, ETH, and other crypto with up to 100x directly from your wallet. It uses Chainlink oracles for zero price impact execution and a multi-asset liquidity pool system (GLP/GM) where liquidity providers earn 63-70% of all platform fees.

What are the fees on GMX?

GMX charges a 0.25% swap fee and 0.10% protocol fee to open positions, with the same fees to close. A variable borrow fee accrues hourly on open positions. Total round-trip cost is approximately 0.70% plus borrow fees. Gas on Arbitrum costs $0.50 to $2.00 per transaction.

Is GMX safe?

GMX is one of the most audited and battle-tested perp DEXes. Three independent audits (ABDK Consulting, Quantstamp, Guardian Audits), a $1 million bug bounty, multisig governance, 48-hour timelock on changes, and over four years of operation without major exploits make it one of the safest options in decentralized trading.

What is GLP and how do I earn from it?

GLP is the liquidity pool token representing a basket of assets (50% stablecoins, 50% volatile crypto) used for trading on GMX V1. GLP holders earn 70% of all platform fees. In V2, GM pools serve a similar function with isolated risk per market, earning 63% of fees. Both serve as the counterparty to leveraged traders.

How does zero price impact work on GMX?

GMX uses Chainlink oracles for price feeds instead of an internal order book. This means you get the same execution price whether you trade $1,000 or $10 million - there is no slippage from trade size. This only applies to trades within the available pool liquidity. Trades exceeding pool capacity may be partially filled or rejected.

Can I earn passive income with GMX?

Yes. There are two main ways: staking the GMX token earns 30% of all platform fees (paid in ETH or AVAX), and providing liquidity to GLP (V1) or GM pools (V2) earns 63-70% of all fees. Third-party vault protocols like Umami Finance offer additional hedged yield strategies on top of GMX pools.

What chains does GMX support?

As of 2026, GMX operates on Arbitrum (primary), Avalanche, and Solana. Arbitrum offers the deepest liquidity and widest market selection. The team has indicated plans for further multichain expansion to additional EVM-compatible chains.

How does GMX compare to Hyperliquid?

Hyperliquid offers lower fees, more trading pairs, and higher daily volume. GMX offers zero price impact execution, a proven fee-sharing model, higher maximum multiplier (100x vs 50x), and a longer security track record. GMX is better for large traders and passive income seekers; Hyperliquid is better for cost-conscious active traders.

Final Verdict

GMX earns an 8.8 overall rating in our assessment, which places it among the top tier of decentralized perpetual exchanges. After over four years of continuous operation, hundreds of billions in cumulative volume, and no major security incidents, GMX has proven itself as one of the most reliable platforms in DeFi.

The strengths are substantial: zero price impact trading through Chainlink oracles, $600 million in TVL providing deep liquidity, a transparent and lucrative fee-sharing model, three security audits, a $1 million bug bounty, and a governance structure with real safeguards. The recent expansion to Solana and the introduction of gasless transactions show that the team continues to push the platform forward.

The weaknesses are equally clear: fees are significantly higher than order-book-based competitors, the market selection is limited at 30 pairs, and the platform focuses exclusively on crypto without equity or RWA markets. For active traders who execute dozens of trades daily, the cost differential compared to Hyperliquid or dYdX is hard to justify unless you need zero price impact specifically.

We recommend GMX for traders who prioritize execution quality over fee minimization, for yield seekers who want to earn real fees from liquidity provision and staking, and for security-conscious participants who value a long track record. It remains one of the best decentralized exchanges in 2026, even as newer competitors chip away at its market share with lower fees and broader asset coverage.