On June 14th, a significant liquidation occurred on the GMX derivative protocol, resulting in a net loss of 8.67 million U.S. dollars for GMX traders on the same day, setting a new historical record. At the same time, the GMX protocol captured a fee of 3.44 million U.S. dollars on that day, the second-highest in history. However, it is worth noting that the fees captured this time were mainly contributed by the liquidation.
GMX traders have been accumulating profits over the past three months. However, after yesterday's significant liquidation, traders have turned from cumulative profits to cumulative losses.
According to the mechanism of the GMX protocol, the GLP liquidity pool serves as the counterparty for every transaction on GMX. Liquidity providers deposit assets into the GLP pool to provide liquidity for GMX. In return, GLP holders receive a portion of the fees generated by the GMX platform. If traders incur losses, GLP holders will receive additional gains. The current annualized return rate for GLP liquidity providers is approximately 10%.
TokenInsight is dedicated to covering the most important and cutting-edge trends in the world of crypto. If you have information to share with us, please feel free to contact our email news@tokeninsight.com. Your trust will be well respected.
GMX
DeFi
