Popular decentralized exchange GMX recorded a spike in annualized yields on popular major tokens, reaching staggering heights of up to 75%. This remarkable increase in yields came into effect following the activation of Arbitrum incentives on the platform earlier this week. The platform, renowned for enabling users to trade spot and perpetual futures for major tokens through an on-chain interface at minimal fees, has therefore gained substantial traction. In the past 24 hours alone, GMX facilitated trades amounting to over $136 million, according to data.
Among the most notable yield percentages, XRP trading pools on GMX are currently rewarding users with nearly 75% returns when paired against the U.S. dollar. Similarly, Solana’s SOL and Dogecoin [DOGE] pools are displaying impressive yields, reaching up to 65%. Bitcoin [BTC] yields have surged to over 28%, marking the highest yield among decentralized finance [DeFi] platforms. Ether [ETH] yields in the exchange have also experienced a significant spike, reaching 19%, as per platform data.
These lucrative yields are made possible through liquidity provided by individual GMX Market [GM] pools. Liquidity providers, individuals who lock their tokens on GMX, are rewarded with a share of fees earned from services such as leverage trading, borrowing, and swaps.
The platform’s ability to offer such enticing rewards can be attributed to its position as the largest recipient of Arbitrum’s ARB token grant. This grant was allocated following a community vote in October and was part of a short-term incentives program [STIP] round. Projects built on the Arbitrum blockchain collectively received $40 million in ARB tokens to attract new investments to the platform.
GMX’s Distribution Plan Of 12M ARB Tokens
Over the course of 12 weeks, GMX plans to distribute 12 million ARB tokens across three distinct incentive categories. The initiative begins with incentives for users providing liquidity to trading pools. Subsequently, trading incentives will be introduced in the upcoming weeks, rewarding users who engage in high-volume trading across various tokens on the platform. Finally, grant incentives will be offered, encouraging developers to create innovative products for the enhancement of GMX.
This surge in annualized yields and the platform’s proactive approach to incentives marks an exciting phase for GMX, indicating substantial opportunities for traders and investors in the decentralized trading space.