Funding Costs on GMX Are Now Much Lower
GMX traders now pay roughly 65% less in funding costs following changes implemented in late April. Median rates on the funding-paying side dropped over 65% from the pre-update baseline.
Decentralized perpetual exchange GMX has significantly reduced funding costs for traders following a set of configuration changes implemented in late April. According to the protocol's announcement, median rates on the funding-paying side have fallen by more than 65% compared to the pre-update baseline.
The changes have had a broad impact: 93 out of 109 markets on GMX now have lower funding rates. The share of long-tail perpetual markets with funding above 50% has dropped to near zero. This makes it substantially cheaper for traders to hold positions for extended periods.
Lower and more stable funding costs also open the door for GMX to support larger, more liquid markets safely. The protocol noted that this is only the first round of improvements to the funding mechanism, with further refinements already in the pipeline.
GMX operates as a decentralized exchange on Arbitrum and Avalanche, allowing users to trade perpetual contracts with leverage. The funding rate is a periodic payment between long and short traders that helps keep perpetual prices anchored to the underlying spot market.
Source: GMX