GMX as a Capital-Growth Layer

https://hackernoon.imgix.net/images/NjLgtpMAVvhHgFe5V4UDLXlaZOL2-1ba3u9j.png

Introduction

If you have not read my earlier research on GMX, I recommend starting there. It explains the basic mechanics of GMX and gives some background on how GM pools can be used as part of a capital-growth strategy, link: https://hackernoon.com/how-gmx-liquidity-pools-work

Now let us go a little deeper and run several simulations to see how GM positions behaved under different market conditions and how they might fit into a broader investment strategy.

It is also important to mention that all of the simulation code used in this article was implemented by me and may contain bugs or errors.

Notes on the Strategy

You may already have capital that is sitting unused, or you may be starting from zero and planning to invest regularly for several years. Or perhaps your situation is completely different — there are many possible starting points. Before deciding what to do with GM, however, there is...

Copyright of this story solely belongs to hackernoon.com. To see the full text click HERE