GMX Launches ETH-USD Market On Arbitrum With wstETH And USDe Tokens
In Brief
GMX listed two revenue-earning assets on Arbitrum, including wstETH from Lido and the synthetic dollar USDe from Ethena Labs.
Decentralized exchange (DEX) GMX announced the listing of two popular revenue-earning assets on Arbitrum, including wrapped staked ETH from Lido (wstETH) and the synthetic dollar USDe from Ethena Labs. Both assets will support an ETH-USD perpetual futures market on GMX V2.
Lido’s wstETH represents a wrapped, liquid version of stETH (staked ETH) designed for optimal use in decentralized finance (DeFi). It keeps a fixed balance of stETH for users and employs an underlying share system to represent staking rewards. USDe, issued by Ethena Labs, is a synthetic dollar intended to offer a stable and scalable digital currency that mirrors the value of the United States dollar. It is minted utilizing BTC, ETH, ETH LSTs, and USDT as collateral, which is hedged on centralized exchanges while earning rewards from positive funding rates.
The new market will offer DeFi users various opportunities, including swapping, margin trading, hedging, earning Ethena points, and receiving fees for providing liquidity.
Furthermore, this market for trading Ethereum perpetuals will utilize wrapped staked ETH from Lido and USDe from Ethena as supporting assets for both long and short positions. Traders will be able to take long or short positions on ETH-USD, using either wstETH or USDe as collateral. Additionally, liquidity providers will have the option to utilize these two fee-earning collaterals on GMX. Funding farmers will also have the opportunity to benefit from high-yield delta-neutral positions.
GMX Integrates Chainlink Data Stream Price Oracles To Its V2.1
It is a decentralized spot and perpetual exchange operating on Arbitrum. It uses a liquidity-sharing mechanism known as GLP to facilitate trades. Meanwhile, GMX serves as both the utility and governance token for the protocol. Individuals who stake GMX tokens have an option to earn various rewards in addition to the ETH distributed to stakers.
The new market has been enabled by the recent rollout of GMX V2.1, which integrates pull-based price oracles from Chainlink Data Streams for wstETH and USDe. These low-latency Data Streams offer GMX users sub-second pricing updates and rapid on-chain transaction execution, reducing reliance on RPC servers. This enhancement improves user experience, protocol security, and decentralization.
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About The Author
Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
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Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
