The GMX community has spoken in favor of implementing the protocol on Coinbase’s (COIN) recently announced layer 2 blockchain, BASE. GMX provides spot and futures trading and has a total value locked (TVL) of $582 million. According to Defillama, it is the largest DeFi protocol on Arbitrum. Although most were in favor of moving to Coinbase, others were concerned. Some are worried whether the project’s unknown creators would need to provide Coinbase with identification documents.
Unlike the recently airdropped Arbitrum token, Base is a layer-2 blockchain that was created using Optimism’s OP stack. It will feed into the Ethereum mainnet and lacks a native token.
Advantages of GMX moving to Coinbase
Coinbase hopes to hasten the development of its on-chain products with the introduction of the BASE token. The Coinbase wallet is one of the top products. It is a self-custody wallet that is tightly integrated into the ecosystem of the platform. The company seeks to boost its own investment in the essential components of the crypto economy while introducing its clients. The platform itself employs over 4500 people, with a quarterly trading volume of $145 billion. Furthermore, it has over 110 million members.
A significant inflow of capital into the ecosystem is expected as a result of the decision to create its own L2. Moreover, the “Base Ecosystem Fund,” which is intended to invest in and promote early-stage enterprises based on Base, will greatly help GMX. The exchange will have plenty of advantages by moving to Coinbases’s BASE layer-2 blockchain. It is likely that the significant integration of BASE into the Coinbase system will help GLP raise money. Users of the GMX protocol employ GLP, a single-sided liquidity pool without impermanent loss, as a counterparty.
The statement mentioned that GMX is already a well-known brand name and it has had excellent success as an early user of an emerging ecosystem; the value of this advantage cannot be emphasized more.