GMX Staking Overview
GMX crypto coin is the native token of GMX, a decentralized and permissionless perpetual swap and spot exchange, operating on the Arbitrum and Avalanche networks. It serves as both a governance and utility token for the GMX protocol, allowing users to easily trade cryptocurrencies on-chain by connecting their wallets. GMX holders can also stake their tokens and earn a portion of the protocol fees, as well as other rewards.
If you have investments in GMX and are seeking a way to earn passive income while supporting the network, staking could be a promising option. This tutorial aims to guide you through the process of staking your GMX and reaping rewards.
How to Stake GMX
To stake GMX, users need to follow the given steps:
Step 1: Set up a MetaMask wallet and connect to a supported network
Step 2: Buy or transfer GMX tokens to your MetaMask wallet
Step 3: Go to the GMX staking portal and stake your GMX tokens
Step 4: Enjoy your rewards in ETH, esGMX, and Multiplier Points
Step 1: Set up a MetaMask wallet and connect to a supported network
To stake GMX tokens on the GMX protocol, first download the MetaMask extension and create your wallet by following the instructions. Next, connect your MetaMask wallet to either the Arbitrum or Avalanche networks by selecting “Custom RPC” and entering the network details. Save the details and check the network name on the top right corner of your MetaMask interface.
Step 2: Buy or transfer GMX tokens to your MetaMask wallet
To stake in the GMX protocol, you need GMX tokens, which can be bought from centralised or decentralised exchanges. Binance and Uniswap are two options for buying GMX tokens. To buy from a centralised exchange, create an account, deposit funds, buy GMX, and withdraw to your MetaMask wallet. To buy from Uniswap, connect your MetaMask wallet, select ETH and GMX, enter the amount, confirm and approve the transaction, and the GMX tokens will be sent to your MetaMask wallet automatically.
Step 3: Go to the GMX staking portal and stake your GMX tokens
To stake your GMX tokens on the GMX protocol, go to gmx.io, click on “Stake”, and connect your MetaMask wallet. Enter the amount of GMX tokens you want to stake and click on “Stake”. Approve the transaction on your MetaMask wallet and wait for it to be confirmed. You can now view your staked balance and total rewards on the staking portal.
Step 4: Enjoy your rewards in ETH, esGMX, and Multiplier Points
Staking your GMX tokens on the GMX protocol will earn you three types of rewards: fees from trading, escrowed GMX, and multiplier points. You can view and claim your rewards in the staking portal and choose to reinvest them to increase your earning potential. However, you need to pay gas fees in ETH to claim your rewards.
Also read: How to buy GMX
Popular video guides on Staking GMX
Best Places to Stake GMX
ReHold is a decentralized exchange that facilitates the trading and staking of cryptocurrencies such as GMX. By staking GMX on ReHold, users can earn rewards in ETH, esGMX, and MP. The staking APR for GMX on ReHold is currently 16.51%. Users can stake GMX on ReHold by connecting their wallets to the Arbitrum or Avalanche networks and approving the GMX contract.
Pros
- By staking GMX on ReHold, users can earn rewards in ETH, esGMX, and MP based on the platform’s generated fees.
- ReHold’s integration with the GMX protocol allows users to benefit from low swap fees, zero price impact trades, high-quality price feeds, and up to 50x leverage.
- Users can participate in the governance of the GMX protocol by voting on proposals.
- Staking of GMX can be done on the user’s preferred network, either Arbitrum or Avalanche.
Cons
- Liquidity and volatility risks may be encountered as GMX is a relatively new token and its price may fluctuate significantly.
- Gas fees incurred when staking or unstaking GMX may be high, particularly on the Arbitrum network.
- Technical or security risks may arise as ReHold relies on smart contracts and external oracles as a decentralized exchange.
- Regulatory or legal risks may be faced by ReHold as it operates in a legal gray area and is subject to different jurisdictions.
Binance is a popular centralized cryptocurrency exchange that provides users with several services, including spot, futures, margin trading, staking, lending, and more. Users can stake GMX tokens on Binance and earn interest in BNB tokens with a current APR of 3.79%. To stake GMX, users need to lock their tokens for a fixed period of 15 to 90 days. However, if users redeem their staked GMX tokens before the lock-up period ends, they will forfeit their interest earnings.
Pros
- By staking GMX tokens on Binance, users can earn interest in BNB tokens, which have a high market value as the native token of one of the world’s largest and most popular cryptocurrency exchanges.
- Binance’s security features provide users with a secure staking environment, and the exchange offers a variety of trading pairs and services such as spot trading, futures trading, margin trading, lending, and more.
- With a low minimum amount of 0.1 GMX, users can easily stake their GMX tokens on Binance.
Cons
- Regulatory and legal risks may be faced as Binance operates in a legal gray area and may be subject to different jurisdictions.
- Technical or security risks may arise as Binance is a centralized exchange that depends on third-party custodians and intermediaries.
- Liquidity and volatility risks may be encountered as GMX is a relatively new token, and its price may fluctuate significantly.
- High fees may be incurred when one is staking or unstaking GMX, particularly on the Binance Smart Chain network.
OKX is a centralized cryptocurrency exchange that supports GMX, a decentralized spot, and perpetual exchange. Users can buy and stake GMX tokens on OKX to earn interest in USDT tokens at a current APR of 1%. To stake GMX on OKX, users need to lock their tokens for a fixed period of 7 to 90 days. If they redeem their tokens before the lock-up period ends, they will forfeit their interest earnings.
Pros
- By staking GMX tokens on OKX, users can earn interest in USDT tokens, which is a stablecoin pegged to the US dollar and has low volatility.
- OKX is a reputable and innovative cryptocurrency exchange that offers advanced financial offerings, providing users with a secure staking environment. The exchange also provides a wide range of trading pairs and services, such as spot trading, futures trading, margin trading, lending, and more.
- With a low minimum amount of 0.01 GMX, users can easily stake their GMX tokens on OKX.
Cons
- OKX operates in a legal gray area, and regulatory or legal risks may be encountered.
- Technical or security risks may arise as OKX is a centralized exchange that depends on third-party custodians and intermediaries.
- Liquidity and volatility risks may be encountered as GMX is a relatively new token, and its price may fluctuate significantly.
- High fees may be incurred when staking or unstaking GMX, particularly on the OKChain network.
Also read: GMX Price Prediction
Benefits of Staking GMX
- By staking GMX on the Arbitrum or Avalanche networks, users can earn rewards in the form of ETH or AVAX tokens, respectively. These are the native tokens of the networks where GMX is deployed, making it a seamless and straightforward process.
- Users can also earn escrowed GMX (esGMX) tokens, which are locked GMX tokens that can be vested over a year or re-staked for more rewards. Additionally, users can earn multiplier points (MP) tokens that boost fee rewards and can be re-staked through compounding.
- By participating in the governance of GMX protocol through voting on proposals, users have a say in the future direction and development of the protocol.
- Staking GMX also contributes to the security and efficiency of the GMX protocol by making the blockchain more resistant to attacks and strengthening its ability to process transactions.
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Most frequently asked questions on GMX Staking
What is staking GMX?
Staking GMX means locking GMX tokens on the GMX platform to earn rewards and participate in governance. It involves setting up a GMX wallet, buying GMX tokens on various platforms, and staking GMX tokens on the GMX platform. By staking GMX, users can earn rewards such as fees paid in ETH or AVAX, escrowed GMX, and multiplier points.
How much can I earn by staking GMX?
By staking GMX on the GMX platform, you can earn rewards in the form of fees from trading, escrowed GMX (esGMX), and bonus rewards. The amount of rewards you can earn depends on factors like the total amount of GMX staked, the trading volume and fees generated on the platform, the price of GMX, and the network fees. You can use a GMX staking calculator to estimate your potential earnings.
What are the risks of staking GMX?
Staking GMX comes with risks such as smart contract risks, lock-up risks, and impermanent loss. Due diligence and research are crucial before staking. Staking requires locking up tokens for a specific period, which may expose you to price volatility and opportunity costs. Providing liquidity to the GLP pool also exposes you to impermanent loss, so you must be aware of the price movements and rebalancing mechanisms of the pool before staking.
How can I unstake or withdraw my GMX?
To withdraw your GMX tokens from staking, you need to connect your MetaMask wallet to the GMX staking portal, enter the amount you wish to unstake, confirm the unstaking, and approve the transaction on MetaMask. However, there are consequences to unstaking, such as losing your rewards in ETH/AVAX and esGMX, burning your earned points, and incurring network fees. As such, it’s important to carefully consider your reasons for unstaking GMX and your goals before taking this step.
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