GMX, a decentralized exchange that lists assets to generate revenue on Arbitrum’s network, has added two of these assets. Lido’s wrapped staked Ether and Ethena Labs’ synthetic dollar (USDe), will be used to support a ETH/USD permanent futures market on GMX Version 2.
The listing reflects GMX’s commitment to provide top earning opportunities, without compromising on liquidity.
The wstETH is an asset that wraps staked Ether in liquid form. This version, essential to the DeFi market, allows for maximum usage.
DeFi platforms, which need to maintain stable asset balance models, are challenged by the fluctuating stETH value as stake rewards come in.
WstETH maintains a constant stETH account balance, while using an underpinning system that reflects stake rewards.
Ethena Labs has created USDe, a fake dollar, to provide a stable and scalable asset which mimics the US Dollar’s value.
USDe can be created by users using collateral such as Tether (USDT), Bitcoins (BTC), ETH-LSTs and Ethereum (ETH).
DeFi fans: New Opportunities
GMX’s new market offers lucrative opportunities to decentralized financial users. These include hedging and margin trading as well as swapping. Users can also receive Ethena Points, or fees for liquidity provision.
The announcement reads:
These ARB rewards are in addition to the wstETH staking rewards, 20x Ethena Sats and GMX’s pool fees. The ARB incentives are on top of the wstETH staking reward, 20x Ethena Sats and GMX pool fees .”
The ETH/USD permanent market also uses the USDe and wstETH assets as support tokens to short and long position.
With USDe, wstETH or USDe as collateral, enthusiasts can take short or long positions in ETH/USD.
On DEX GMX, the collateral for fee-earning assets can also be used by liquidity providers.
Moreover, farmers who receive funding can take advantage of high-yielding positions in order to increase their return.
The GMX listing on Arbitrum of USDe, wstETH and xrbETH reflects recent attention to the ARB Blockchain.
Chainlink, for example, collaborated with WiseLending in order to enhance technology on both the Arbitrum network and Ethereum.
Arbitrum benefits from Chainlink Integration
Chainlink has announced that it is joining forces with WiseLending, a decentralized yield protocol.
WiseLending integrates LINK Price Feeds for lending and borrowing Ethereum and Arbitrum.
Smart contract users will be able to access data from the real world, which allows developers to create advanced applications.
Price outlook for ARB
The native token showed a notable decline despite these developments.
ARB was trading at $0.6027 as of the time of publication, down by 5.85% in one day.
The token has dropped 17% in the past week, and by 25% over the month.
The Arbitrum network has been affected by waning user interest.
Dune Analytics shows that ARB’s addresses active has dropped 83.84% from May to 648K.
The new metric of users has also dropped to 181.6K, down from 2.7M. This is a drop of 93.27%. Such numbers reflect dwindled user engagement.
To improve network activity, and save ARB’s valuation from a decline, developers must continue to work harder.
The post GMX Decentralized Exchange lists two assets that generate revenue on Arbitrum (ARB), may change as new information becomes available.
