The WIF and PEPE markets on GMX on #Arbitrum have recently been the top performers for GM liquidity providers. The rewards earned in these two pools are exceptional due to their high utilisation — traders love memes.
Trade PEPE or WIF permissionlessly on-chain, or provide liquidity for WIF/USDC or PEPE/USDC and earn on your meme tokens: https://t.co/DIjfl1FsOJ
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🔸Outperforming Benchmarks
The @pepecoineth and @dogwifcoin pools have also shown superior returns over a longer timeframe. They significantly outperformed the benchmark of a regular rebalancing 50/50 LP position over the last 3 months.
Virtually all of the GM pools are outperforming their rebalancing 50/50 counterparts, highlighting the value of being an LP in GMX's GM pools:
Other notable GM performers include the BTC/USD [BTC] pool. By providing single-sided BTC liquidity to a BTC/USD market, you can earn ~10% annually on your Bitcoin.
Thanks to zero price impact being activated on the single-token BTC/USD [BTC] and ETH/USD [WETH] pools, volume and LP rewards have significantly increased. The absence of price impact is a very attractive feature for big traders.
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🔸Understanding Your Exposure
What is your exact exposure as an LP in a GM pool? Liquidity providers:
- are exposed to the price movements of the underlying assets.
- are counterparty to the traders, and exposed to trader PnL at times when that GM market isn't 50:50 balanced between Longs:Shorts.
- earn fees from the pool at the listed reward rate.
Please note that the returns listed on https://t.co/MnvZMQH9Nx do not include price changes of the underlying token(s) or traders' Profit & Loss. They purely reflect the fees LPs earn from leverage trading, borrowing fees and swaps. These fees are auto-compounded, automatically increasing the price of your GM tokens.
All in all, the GM pools of GMX V2 have generated nearly $66 Million in revenue over 13 months:
