The GMX community proposes to deploy the protocol to the base of Coinbase

On March 21, a post on the GMX Governance Forum of the Decentralized Derivatives Exchange showed that some members of the GMX community supported the deployment of the GMX protocol on the Layer2 blockchain Base of Coinbase. GMX Exchange currently locks in a total value of $582 million on Arbitrum and Avalanche.

Interpretation of this information:

The recent post on GMX Governance Forum reveals the community’s support to deploy the GMX protocol on the Layer2 blockchain Base of Coinbase. This development is a significant milestone for the GMX Exchange, which currently locks in assets valued at $582 million on Arbitrum and Avalanche. The move to deploy the GMX protocol on Base would enable the Exchange to scale faster, enhance its security, and reduce congestion on the Ethereum network.

GMX Exchange is a decentralized derivatives trading platform that provides users with access to various market instruments such as options, futures, and perpetual contracts. The platform operates on the Ethereum blockchain, which has been plagued by scalability issues, high gas fees, and network congestion. These challenges have limited the growth of decentralized exchanges, and GMX is no exception.

The deployment of the GMX protocol on Base of Coinbase would enable the Exchange to overcome these challenges, as Base is a Layer2 blockchain that operates on top of the Ethereum network. This means that GMX can benefit from the scalability and low transaction fees of Base while still retaining the security and decentralization of the Ethereum network. Moreover, Base has a high throughput of transactions, making it ideal for a derivatives exchange that requires fast settlement times.

The decision to deploy the GMX protocol on Base is an excellent move, given the incredible growth of Coinbase, which has emerged as a leading cryptocurrency exchange in recent years. Coinbase has achieved significant milestones, such as going public in 2021 and surpassing one million monthly active users. These factors make Base an attractive option for GMX, as it could provide access to a broader user base, liquidity, and partnerships that could help drive the growth of the Exchange.

In conclusion, the move to deploy the GMX protocol on Base of Coinbase is a significant development for the Exchange, as it presents an opportunity to scale, reduce costs, and enhance security. It is also a strategic move that positions GMX for future growth, given the impressive milestones that Coinbase has achieved, making it an attractive platform for partnerships and liquidity.