Arbitrum’s Most Popular DEX Goes Live With New Version Offering DOGE Pools at 40%

The initial model of trading platform GMX’s version 2 went live Thursday, attracting just over $1.2 million for its liquidity pools in a muted launch.

GMX, the most popular decentralized exchange on the Arbitrum layer 2 network, allows users to trade spot and perpetual futures through an on-chain interface at low fees. Part of its recent popularity can be attributed to the rise of the Ethereum-based Arbitrum, where GMX was able to offer traders a service for betting on price movements of major tokens, such as bitcoin (BTC) and ether (ETH), using leverage.

V2 will exist alongside the current GMX platform. It expands the list of tradable assets to include alternative currencies such as dogecoin (DOGE) at lower fees than version 1 in an effort to attract trading activity and drive revenue growth.

Liquidity on V2 is provided through individual GMX Market, or GM, pools. Liquidity providers are users who lock their tokens on GMX and are rewarded with a cut of fees earned from services such as leverage trading, borrowing and swaps.

Initial GM pools include solana (SOL), xrp (XRP), litecoin (LTC), dogecoin and arbitrum (ARB) on the Arbitrum network alonside SOL, XRP, LTC and DOGE on the Avalanche network.

A GM pool comprises long tokens, which back positions betting on higher prices, a short token, which bets on lower prices, and an index pool token.

As of Friday, GM pools for DOGE are paying out as much as 45% annualized, while the solana pool is paying 47%. The rates are subject to change.

The introduction of V2 could help GMX’s prospects among traders in an increasingly competitive market. Ultimately, attractive rewards and increased revenues could drive value to GMX’s namesake governance tokens gmx (GMX).

GMX locks up over $447 million on Arbitrum and $74 million on the Avalanche network, data from DefiLlama shows. The platform has traded over $117 billion worth of tokens and generated $184 million in fees for its Arbitrum users alone, data shows.