- GMX, a decentralized derivatives exchange, has received community approval to deploy the protocol on Coinbase’s (COIN) recently announced layer2 blockchain, Base.
- GMX community members have expressed support for the proposal, seeing it as an opportunity to expand the platform’s reach and improve GMX token liquidity.
- Deploying on Base could make GMX a “first mover” in the emerging layer2 ecosystem, potentially giving the platform an advantage over its competitors.
According to reports, Decentralized Derivatives Exchange GMX has proposed to deploy its protocol on Coinbase’s newly launched platform Base. The proposal has received support from GMX community members who favor scaling the platform to other blockchains.
According to DefiLlama, GMX is currently the most extensive decentralized finance protocol on the Arbitrum platform, with $582M in total value locked. The platform allows for spot and derivatives trading, and its native token, GMX, is currently trading at $77.25, up nearly 90% year to date.
Base, an innovative blockchain layer 2, was created with Optimism’s OP stack and will integrate into the leading Ethereum blockchain network. Unlike the recently distributed Arbitrum token via airdrop, Base has no inherent token. Nonetheless, it is expected to play a critical role in the rapidly expanding range of layer two solutions aimed at improving the scalability and effectiveness of the Ethereum network.
The proposal to deploy GMX on Base has sparked interest among the GMX community. Some see it as an opportunity to broaden the platform’s reach and attract new users, while others believe it will help improve the overall liquidity of the GMX token.
Nonetheless, a few forum members have expressed concerns about whether GMX’s anonymous creators would be required to provide Coinbase with identification records following anti-money laundering laws.
During an interview with Bloomberg Radio, Coinbase CEO Brian Armstrong hinted that knowing your customer verifications would be implemented upon the launch of Base.
Despite these reservations, many members of the GMX community remain optimistic about the proposal. Some have suggested that deploying on Base could position GMX as a “first mover” in the emerging layer two ecosystems, potentially giving the platform a competitive advantage.
Conclusion
If approved, the proposal could pave the way for additional decentralized finance protocols to be deployed on Base and another layer two solutions. Layer 2 solutions are becoming increasingly important as the Ethereum network grows in terms of scalability and transaction fees, making it easier for users to access decentralized finance applications.
The native token of the GMX exchange, GMX token, was recently trading at $77.25. It’s up almost 90% this year, according to Cryptowatch.
