In V1, longs and shorts were in a state of imbalance for an extended period. In a one-sided market, this easily brought significant risks to LPs, and increasing the leverage limit would exacerbate these risks. However, after the implementation of the adaptive funding fee in V2, longs and shorts achieved a nearly perfect balance in the long run. Raising the leverage limit can better tap into trading demand, and short-sided arbitrage strategies will effectively protect LP exposure.
Related topics
| Topic | Replies | Views | Activity | |
|---|---|---|---|---|
| Increase max leverage to 50x | 12 | 3805 | May 5, 2022 | |
| # GMX V2: (i) UPDATING THE GMX-INTERFACE CODEBASE AND (ii) GMX V2 FEE SETTINGS | 20 | 8107 | April 19, 2023 | |
| Assistance Required: Leverage Issue on GMX Vault | 1 | 98 | December 16, 2024 | |
| GMX <> MUX Collaboration | 15 | 1945 | January 7, 2023 | |
| GMX V2.X: Zero Slippage, Max Liquidity, Unlimited Open Interest, Virtual Order Book | 22 | 2242 | September 7, 2024 |