GMX Launching on Solana with the Help of Chainlink Data Streams
The perpetual exchange aims to enhance its market presence by leveraging Solana’s large network of traders.
GMX, a decentralized perpetual exchange, has launched GMX-Solana, integrating Chainlink Data Streams as its official data oracle solution. This expansion brings GMX to the Solana blockchain, supporting a wide variety of assets and enabling users to trade in a self-custodial manner without the need for intermediaries.
Launched in September 2021, GMX has quickly established itself as one of the leading decentralized perpetual exchanges. Currently, it ranks among the top-7 decentralized exchanges for perpetual trading volume and top-3 by Total Value Locked (TVL). The platform generates over $4 billion in monthly trading volume, has a TVL of approximately $500 million, and serves around 6,600 weekly users.
The launch of GMX-Solana is particularly significant because GMX has integrated Chainlink Data Streams to provide high-frequency market data. Historically, Chainlink has been less competitive than other providers, such as Pyth, in delivering high-frequency pricing data. For example, Chainlink currently holds only 15.5% of the market share on Solana, while Pyth commands over 84%.
Chainlink’s Data Streams are designed to address this gap and improve its standing in the high-frequency data market.
According to a DAO governance proposal, the Solana integration took around seven months to complete. After final audits, the core exchange code will be made open-source. GMX is also operational on other blockchains such as Arbitrum and Avalanche.
The fee distribution model for GMX-Solana is as follows: 60% will go toward buying back $GMX and funding GMSOL Points reserves, 30% will be distributed as real yield to liquidity providers (LPs), and 10% is allocated for technology. Over the past 30 days, the platform has generated around $4.3 million in fees, and the addition of Solana is expected to further boost this revenue.
Additionally, as part of its partnership with Chainlink, GMX-Solana will pay 1.2% of total protocol fees to Chainlink service providers for the use of Data Streams.
The announcement had a positive effect on the $GMX token, which saw a 10% increase. The current market capitalization of the token is approximately $240 million, though its price has generally been declining throughout this year.
The decentralized perpetual exchange sector has become increasingly competitive, with many players vying for market share. GMX has seen some erosion of its market position, which has contributed to the token’s declining value.
However, the introduction of Solana could provide GMX with access to a broader community of Solana traders, potentially strengthening its position in the market. Whether this opportunity will be fully realized remains to be seen. We will continue to Observe.