Derivative Volumes Push DeFi Yields To Highest Levels In Two Years
DefiLlama reports that GMX or protocols operating on top of GMX now offer four out of the top 10 highest yields for protocols with at least $10 million in deposits.
GMX is a decentralized perpetual trading exchange deployed on the Arbitrum and Avalanche blockchains, allowing traders to bet on the future value of an asset indefinitely without an expiration date. Liquidity providers on GMX V1 are earning a 35.6% annual percentage yield, while liquidity providers on GMX V2 are earning 11.8% to 105.3%.
These yields are driven by the increase in perpetual futures trading, which reached an all-time high weekly volume of $84.5 billion during the week ended March 1. However, these yields come with risks, such as smart contract risks and counterparty issues.
(With inputs from Shikha Singh)
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