The Essential Guide to GMX Staking

by Mar 5, 2023Defi0 comments

Decentralized spot and perpetual exchange GMX staking allow deals with no price influence and inexpensive swap costs. A unique multi-asset pool that supports trading generates fees for liquidity providers via market making, swap fees, and leverage trading. In essence, GMX allows users to place Long or Short bets with leverage of up to 30x to profit on market volatility. This guide will explain how to stake your tokens on the GMX staking protocol and where to acquire $GMX.

Make sure you have a MetaMask wallet.

One of the most well-known self-custody wallets is MetaMask, which enables users to stake their tokens, access blockchain applications, and manage several tokens in a single wallet. The MetaMask wallet is available for download here.

Acquire some $GMX tokens.

You may buy $GMX tokens on significant centralized exchanges or through the Uniswap Dex.

Go to Uniswap Dex and link your Metamask wallet to get $GMX tokens using Uniswap. Join the Arbitrum network; we’ll trade $ETH for $GMX.

  • Choose “ETH” from the “from” tab.
  • Choose “GMX” from the “to” tab.
  • If GMX staking is not present, you must import the contract address.
  • The contract address is 0xfc5a1a6eb076a2c7ad06ed22c90d7e710e35ad0a.
  • Hit “Confirm Swap.”
  • Authorize the MetaMask transaction.
  • In your MetaMask wallet, the $GMX will appear.

Remember that you will need to leave some ETH for gas expenses. Great! You may now delegate your stake to the staking interface because you have $GMX tokens.

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Visit the GMX staking interface

Connect your Metamask wallet by visiting the GMX staking portal. Please refer to the section that follows this one for guidance on validator selection.

  • Link your wallet.
  • Choose “Stake”
  • Put in the stake amount you want to use.
  • Click “Approve GMX”
  • Accept the transaction
  • Success!

Keep track of your rewards in the ‘Total Rewards’ block on the right-hand side of the page.

Where are the benefits of my staking come from?

Staked GMX is rewarded in three different ways:

  • Fees from trading: Arbitrum stakers get 30% of platform fees (swap fees, costs for starting and closing positions, and borrowing fees) in ETH.
  • Escrowed GMX (esGMX): esGMX tokens may either be re-staked to generate incentives similar to GMX or converted into GMX over a year. Although the emission of esGMX has no upper limit, it is always supported by the highest GMX supply.
  • Multiplier Points (MP): MP increases your fee rewards, which are distributed to GMX stakers every second linearly at a fixed 100% APR. Compounding can also be used to re-stake MP.

Please visit the Rewards page for additional information on Escrowed GMX and Multiplier Points.

How can Escrowed GMX be used?

  • Escrowed GMX (esGMX) has two applications:
  • Staked for benefits comparable to those of regular GMX tokens
  • Vested to become actual GMX tokens over one year

The incentives for each staked Escrowed GMX token are equal to those for ordinary GMX tokens in terms of Escrowed GMX and ETH/AVAX.

Remember that Escrowed GMX (esGMX) is intended for transfer once a complete account transfer is made. Please note purchase esGMX off-market or over-the-counter (OTC) since you cannot vest them.

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What Are Multiplier Points?

Multiplier Points reward long-term holders without inflation. When you stake GMX, you get Multiplier Points per second at a fixed rate of 100% APR. If you had to stake 1000 GMX for one year, you would earn 1000 Multiplier Points.

By selecting “Compound” on the Earn tab, multiplier points can be staked for fee rewards. Each multiplier point will increase ETH / AVAX APRs at the same rate as a standard GMX token.

Conclusion

Staking on GMX, one of the most popular protocols on the market, and a Staking Rewards favorite is a terrific method to earn’real yield’ on your cryptocurrency. If you haven’t already, visit the GMX staking Asset page for further information about staking GMX. Happy staking!

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