Gambit Protocol Partnership With Arbitrum
Interest-generating stablecoins backed by leverage, Gambit Protocol has been partners with Arbitrum, an Ethereum Layer 2 solution which enables instantaneous transactions with low transaction costs while remaining trustless and secure.
The goal of Gambit is to build a better leverage platform. There are no price impacts to enter and exit a position and liquidations only occur through Chainlink price updates so traders will not experience wicks from cascading liquidations. Gambit provides a capital efficient model for creating stablecoins while maintaining their pegged value.
How does Gambit work?
Gambit utilizes three tokens, GMT, xGMT, and USDG, each fulfilling its own purpose.
GMT is a governance token that has ownership of the ecosystem and votes on new products, fees, treasury use, etc.
xGMT is a yield-generating token that receives fees from people using Gambit.
USDG is a yield- generating stable-coin. Users can mint USDG by depositing whitelisted assets, creating liquidity for swaps and trades.
What is the value of the GMT token?
GMT is a governance token, with a total supply of 401,469 (598,531 having been burnt from the original supply of 1,000,000). It will be used to govern the Gambit ecosystem. This includes voting on: whitelisting new assets, strategic partnerships, integration with other DeFi products, and fee structures for both existing and new products. Additionally GMT holders will control the 23% treasury fund of xGMT and all the fees that go with it.
The new and improved GMX contracts include dynamic fees, asset weights for GLPs, automatic stop-losses for leverage trading, staking and bonuses.Gambit Protocol became a part of the projects launching on Arbitrum to build DeFi applications which offer the best user experience without compromising on security.
ABOUT GAMBIT PROTOCOL
Gambit is a decentralized leverage trading exchange and a stable-coin platform. On Gambit users can stake whitelisted assets (on launch: BTC, ETH, BNB, BUSD, USDC, USDT) for USDG. These whitelisted assets facilitate swaps and the opening of leveraged positions.
ABOUT ARBITRUM
Arbitrum is a scaling solution for Ethereum that drastically reduces costs and latency. A so-called “Optimistic Rollup”, Arbitrum instantly scales apps, reducing costs and increasing capacity, without sacrificing Ethereum’s security. Porting contracts to Arbitrum requires no code changes or downloads as Arbitrum is fully compatible with all existing Ethereum developer tooling. Arbitrum has launched Arbitrum One on Ethereum mainnet and is open for developers, and the team is already working with hundreds of teams ahead of its upcoming release to the public.
