Decentralized finance (DeFi) exchange GMX logged fees of over $5 million in a 24-hour period over the weekend – temporarily making it the largest revenue generator in decentralized finance (DeFi), ahead of even the Ethereum blockchain. This added to the $120 million in total fees accrued since September 2021, GMX’s dashboard data shows – which may signal fundamental strength for GMX’s native tokens.
The fees are shared across GMX’s two tokens, gmx, and glp. Gmx is the utility and governance token and accrues 30% of the platform’s generated fees, while glp is the liquidity provider token that accrues 70% of the platform’s generated fees.
Ethereum fees clocked in at $4.7 million over that period. These fees were generated from user actions on Ethereum, such as transactions or issuance of ERC-20 tokens. However, these fees do not include the fees generated by applications on Ethereum itself. Uniswap, for instance, had upward of $1 million in fees collected from users. Smart contracts are used by DeFi products such as GMX to provide customers with financial services like trading and lending. On its exchange, GMX allows customers to trade futures, or financial derivatives of spot tokens, with leverage of up to 50 times the initial collateral. Minimal slippage, low fees, and protection against unwanted liquidations are among GMX’s advantages that have led to the DEX’s success. As of Monday, it has locked in over $500 million in tokens, with $455 million on Arbitrum and the rest on Avalanche. As a result, some members of the Crypto Twitter community believe that a chunk of Friday’s $5 million revenue came from Mechanism Capital founder Andrew Kang closing multimillion-dollar bets on GMX in bitcoin and ether.
Meanwhile, Ethereum was back to the top spot on Monday with over $3 million in fees generated over a 24-hour period
