The proposal notes that the Base network’s strong integration into Coinbase’s ecosystem could help attract capital and facilitate the use of GMX’s leverage trading platform.
Benefits for GMX
GMX, a popular derivatives trading platform, has submitted a proposal to deploy on Base, a layer 2 network from crypto exchange Coinbase.
According to the proposal, GMX liquidity provider token GLP offers a strong base layer for the Arbitrum DeFi ecosystem, allowing several other protocols to be built upon. With high capital inflows expected at the Base, there are hopes that GLP-type products and GMX synths would benefit from its ecosystem.
As stated, BASE’s strong integration into Coinbase’s ecosystem will benefit GLP in attracting capital and facilitating the use of GMX’s leverage trading platform.
“Since GMX is already an established brand name and had very good experiences with being an early adopter of an uprising ecosystem, an early mover advantage is not to be underestimated, especially in attracting sufficient liquidity for the GLP / synth vaults,” The proposal read.
The proposal received positive feedback from the community. According to some, GMX can lead the derivatives market on Base.
“Coinbase does not have derivative trading, and derivatives on Base meet the needs of users, which will attract a lot of capital. Investment funds can also choose GLP to adopt a neutral strategy to obtain returns far exceeding those of the currency market,” One of the community members shared
However, some GMX forum users are concerned that Coinbase will require identification documents for the project’s pseudonymous founders. A Bloomberg Radio interview with Coinbase CEO Brian Armstrong hinted at implementing Know-Your-Customer checks when the platform goes live.
Earlier on January 6, GMX had a similar proposal for deploying on BNB Chain, citing the network’s enormous user base and ability to synthesize decentralized derivatives and perpetual contracts.
With $1.12 billion in total value locked (TVL), GMX captures 33.33% of Arbitrum’s market share. GMX is trading at $79.26, up 0.91% in 24 hours.
What is GMX:
GMX is a decentralized permissionless exchange launched in September 2021 on Arbitrum, a layer-2 solution for the Ethereum blockchain. It was deployed in January 2022 on Avalanche, an EVM-compatible blockchain capable of high speed in transactions per second.
Where to find GMX:
What is Base:
Base is a secure, low-cost, developer-friendly Ethereum L2 built to bring the next billion users to Web3. Base is built as the optimum environment for budding developers in Web3 to build on using their RPC testnet endpoint or choose from Node providers: QuickNode, Infura, and Blockdaemon. Developers can start building on the Base testnet today and stay tuned for the upcoming mainnet launch.
Find more about Coinbase here:
Source : bsc.news
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