GMX Community Expresses Support for Protocol Deployment on Coinbase’s Layer2 Blockchain Base

03/21/2023 10:57 • Crypto & Markets • 65 views

On March 21, a post on the GMX Governance Forum of the Decentralized Derivatives Exchange showed that some members of the GMX community supported the deployment of the GMX protocol on the Layer2 blockchain Base of Coinbase. GMX Exchange currently locks in a total value of $582 million on Arbitrum and Avalanche.

The GMX community proposes to deploy the protocol to the base of Coinbase

Introduction

The GMX Governance Forum of the Decentralized Derivatives Exchange, on March 21, revealed a significant development that may impact the DeFi space. Members of the GMX community expressed their support for the deployment of the GMX protocol on the Layer2 blockchain base of Coinbase.

What is GMX?

GMX is a decentralized derivatives exchange that facilitates trustless trading of derivatives in the cryptocurrency space. GMX’s platform operates on the Ethereum blockchain, providing users with a fast, safe, and efficient trading experience. Trading of GMX tokens and other affiliated tokens takes place under the control of smart contracts rather than traditional centralized exchanges. This adds a new layer of security for traders since smart contracts are nearly impossible to hack.

GMX on Arbitrum and Avalanche

Currently, GMX Exchange operates on Arbitrum and Avalanche blockchains. It manages a total value of $582 million locked in its smart contracts. These high figures are a testament to the strength of GMX’s protocol and the trust placed in it by traders.

Why Deploy GMX on Coinbase’s Layer2 Blockchain Base

Coinbase’s Layer2 blockchain base is fast becoming one of the top Layer2 solutions for scaling Ethereum-based blockchain projects. It provides a high-speed, low-cost, and scalable environment that enables quick and easy transfer of assets. Deploying GMX’s protocol on Coinbase’s Layer2 Blockchain Base could lead to a significant reduction in trading fees and the transaction time of derivatives traders on the GMX exchange.
Additionally, GMX Exchange can leverage Coinbase’s reputation as one of the most secure and trustworthy exchanges globally, thereby increasing trader confidence in the safety and security of their funds.

How Does GMX Deployment on Coinbase’s Layer2 Blockchain Base Affect the DeFi Space?

The deployment of GMX on Coinbase’s Layer2 Blockchain Base could have far-reaching consequences for the decentralized finance (DeFi) space. First, it acts as a nod of approval for Coinbase’s Layer2 scaling solution, since GMX is a well-known decentralized derivatives exchange. This may attract other Ethereum-based DeFi projects to adopt Coinbase’s Layer2 Blockchain Base.
Furthermore, if GMX can significantly lower trading fees and transaction times, it may put traditional financial institutions under increasing pressure to adapt to an era in which users demand quick and low-cost services.

Conclusion

The DeFi space continues to experience rapid growth, with new projects launched almost daily. However, the gold standard for decentralized finance is demonstrated by the top projects that have gained trust and traction in the space.
GMX is a well-regarded protocol in the derivatives market, and the support of its community for its deployment on Coinbase’s Layer2 Blockchain Base could give a significant boost to the scaling solution. The future looks bright for GMX and other Layer2 Ethereum-based DeFi projects that adopt Coinbase’s Layer2 Blockchain Base solution.

FAQs

1. What is GMX’s main advantage over traditional centralized exchanges?
GMX’s main advantage is that it utilizes smart contracts instead of centralized control, making it almost impossible for hackers to penetrate.
2. Could GMX’s deployment on Coinbase’s Layer2 Blockchain Base lead to increasing competition between Layer2 solutions?
Yes. It is possible that if more DeFi projects adopt Coinbase’s Layer2 solution, it could lead to increased competition between other Layer2 solutions.
3. How does GMX’s protocol operate on Ethereum’s blockchain?
GMX’s protocol operates on Ethereum’s blockchain by facilitating fast, safe, and efficient trading of derivatives, with all trading controlled by smart contracts.

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