GMX.io - Decentralised Perpetual Exchange

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🧵: @GMX_IO - Decentralised Perpetual Exchange __ This dApp is built on top of #Arbitrum, a Layer 2 scaling solution. It has facilitated over 45 Billion Dollars of trading volume since its inception. Here's a short thread to familiarise yourself with this platform. 🧶

Arbitrum Odyssey: Week 2 __ As outlined by @OlimpioCrypto's recent thread, GMX is one of two protocols you must interact with this week to qualify for the airdrop. twitter.com/OlimpioCrypto/status/1541733922823966727?s=20&t=ND-Gw90Ids-EpNKRcPRRUw There are 3 tasks this week: 1️⃣: Perform a swap 2️⃣: Mint $GLP 3️⃣: Open a leverage trade

1️⃣: Perform a swap __ Head over to gmx.io/trade and connect your wallet - make sure you're connected to the Arbitrum Network. On the top right, head over to "Swap" and swap at least $10 worth of tokens. I'd suggest swapping for some $wBTC or $UNI. Why?

2️⃣: Mint $GLP __ What is $GLP? $GLP is the liquidity provider token that is composed of a basket of assets (see below). $GLP can be minted using any of the assets listed. The fee you pay to mint is based on whether your deposited asset helps to balance the index, or not.

To mint, click on: gmx.io/buy_glp, on the right-hand side you can see that minting $GLP with $wBTC or $UNI can be done with 0 fees. Why? The pool is weighted unevenly, with a suboptimal distribution in $wBTC and $UNI - hence, my recommendation (trying to save you $)

3️⃣: Open a leverage trade Head over to gmx.io/trade and you'll be met with a platform that looks like this.. Notice it says "Long" and "Short" on the top-right hand side. To go "Long" is to open a position with the expectation that price will appreciate. Vice-versa.

To open this position, you must deposit some collateral in the form of $BTC, $ETH, $LINK, $UNI, $USDC, $USDT, $DAI, $FRAX or $MIM. Then, you can drag the leverage slider - it starts at 1.1x and scales up to 30x. (If you're not familiar with how leverage works, I'd suggest 1.1x)

Let's assume you deposit $10,000 $USDC and apply a leverage of 2x - your purchasing power increases by two-fold. You're putting down $10,000 to borrow $20,000 to "Buy Bitcoin" - *if* price appreciates, you'll "Sell Bitcoin" and pay back your loan and pocket the difference.

If price moves down and hits your liquidation price, your position will be liquidated & collateral is used to pay back your loan. Leverage is very much a double-edged sword. It magnifies both your gains & losses. Use it wisely, it's a powerful tool that comes with great risks.

Concluding Comments: __ To qualify for 1 of the NFT airdrops this week, you just need to perform the three simple actions that I've broken down for you. Interested in learning how to trade for a living and/or mouth-watering food pictures? If so, don't forget to turn on that 🔔