ITSA DeFi insight — GMX on-chain perpetuals and GLP

Figure 1: GLP Composition (source: https://app.gmx.io/#/dashboard)

How GMX/GLP earns money

The GLP pool is a multi-asset pool that enables trading as well as long/short and swap trading for its users. Market making, swap fees, and leverage trading generate liquidity provider (LP) fees for this pool, which are then returned to GMX and GLP holders.

Figure 2: Traders Net PnL (source: https://stats.gmx.io/)
Figure 3: Cumulative Fees (source: https://stats.gmx.io/)
Figure 4: GLP Performance (source: https://stats.gmx.io/)
Figure 5: AVAX GLP APR Composition (source: https://app.gmx.io/#/earn)
Figure 6: AVAX Escrowed GMX APR Composition (source: https://app.gmx.io/#/earn)

Rebalancing and price feeds

Once a week, GLP does a passive rebalance by updating asset prices to determine new target weights. GLP and swap minting and redemption fees are dynamically modified to provide LPs and traders with an incentive to move actual asset weights in the direction of desired weights.

The classification of GMX according to the ITC

Figure 3: The GMX Tokenbase entry (Source: https://itin.itsa.global/NRC2Q7B35)

The International Token Standardization Association (ITSA) e.V.

The International Token Standardization Association (ITSA) e.V. is a not-for-profit association of German law that aims at promoting the development and implementation of comprehensive market standards for the identification, classification, and analysis of DLT- and blockchain-based cryptographic tokens. As an independent industry membership body, ITSA unites over 100 international associated founding members from various interest groups. In order to increase transparency and safety on global token markets, ITSA currently develops and implements the International Token Identification Number (ITIN) as a market standard for the identification of cryptographic tokens, the International Token Classification (ITC) as a standard framework for the classification of cryptographic tokens according to their inherent characteristics. ITSA then adds the identified and classified token to the world’s largest register for tokens in our Tokenbase.

  • The International Token Identification Number (ITIN) is a 9-digit alphanumeric technical identifier for both fungible and non-fungible DLT-based tokens. Thanks to its underlying Uniform Token Locator (UTL), ITIN presents a unique and fork-resilient identification of tokens. The ITIN also allows for the connecting and matching of other media and data to the token, such as legal contracts or price data, and increases safety and operational transparency when handling these tokens.
  • The International Token Classification (ITC) is a multi-dimensional, expandable framework for the classification of tokens. Current dimensions include technological, economic, legal, and regulatory dimensions with multiple sub-dimensions. By mid-2021, there will be at least two new dimensions added, including a tax dimension. So far, our classification framework has been applied to 99% of the token market according to market capitalization of classified tokens.
  • ITSA’s Tokenbase currently holds data on over 4000 tokens. Tokenbase is a holistic database for the analysis of tokens and combines our identification and classification data with market and blockchain data from external providers. Third-party data of several partners is already integrated, and API access is also in development.

Remarks

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International Token Standardization Association

International Token Standardization Association

The International Token Standardization Association (ITSA) is a not for profit organization working on holistic market standards for the global token economy.