GMX

GMX is a decentralized spot and perpetual exchange deployed on Arbitrum and Avalanche that pioneered the 'real yield' narrative in DeFi. Unlike protocols that incentivize liquidity with inflationary token emissions, GMX generates genuine revenue from trading fees and distributes a portion of it directly to token holders in ETH or AVAX. The protocol was launched in 2021 by an anonymous developer known as X (or xdev) and rapidly became one of the most successful DeFi applications on Arbitrum, catalyzing the growth of that entire ecosystem.

GMX operates on a unique multi-asset liquidity pool model. Liquidity providers deposit assets into the GLP pool (or the newer GM pools in V2), which acts as the counterparty to all trades on the platform. When traders open leveraged positions, they borrow from this pool, and the pool earns trading fees, borrowing fees, and liquidation fees in return. This means liquidity providers earn real yield from actual trading activity rather than from token inflation. GMX stakers receive 30% of all platform fees in ETH (on Arbitrum) or AVAX (on Avalanche), while GLP/GM holders receive 70% of fees.

The launch of GMX V2 in 2023 introduced isolated trading pools (GM pools) that improved capital efficiency and risk management. Each GM pool consists of a specific long token, short token, and index token, allowing liquidity providers to choose their exposure rather than participating in a single omnibus pool. By 2026, GMX has processed tens of billions in trading volume, consistently generates millions in weekly fees, and remains the dominant perpetual DEX on Arbitrum. Its fee-sharing model has inspired numerous forks and competitors across multiple chains.