GX Swap
Overview
GX Swap is a decentralized token exchange purpose-built for GX Exchange, deployed on Arbitrum One. It provides concentrated liquidity AMM functionality with up to 4000x capital efficiency compared to traditional constant-product AMMs. The primary trading pair is GX/USDC.
Key Features
| Feature | Description |
|---|---|
| Concentrated Liquidity | LPs specify price ranges for up to 4000x capital efficiency |
| Multiple Fee Tiers | 0.05%, 0.3%, 1% fee tiers based on pair volatility |
| Protocol-Owned Liquidity | GX Treasury seeds initial liquidity pools |
| LP Fee Rewards | Liquidity providers earn swap fees proportional to their share |
Primary Pools
| Pool | Fee Tier | Description |
|---|---|---|
| GX / USDC | 0.3% | Primary GX trading pair |
| GX / USDT | 0.3% | Secondary stablecoin pair |
| ETH / USDC | 0.05% | Major pair with tight spread |
| BTC / USDC | 0.05% | Major pair with tight spread |
| gxUSD / USDC | 0.04% | Stablecoin pool (tight spread) |
How Concentrated Liquidity Works
Traditional AMMs spread liquidity uniformly across the entire price range (0 to infinity). Concentrated liquidity allows LPs to allocate capital to specific price ranges where trading actually occurs.
Example:
- An LP believes GX will trade between $0.80 and $1.20
- They provide liquidity only in this range
- Their capital is far more efficient than spreading it across all prices
- They earn more fees per dollar of capital deployed
Providing Liquidity
- Select a pool (e.g., GX/USDC)
- Choose a price range for your position
- Deposit both tokens in the correct ratio
- Earn swap fees on every trade that executes within your range
- Withdraw liquidity at any time
Fee Structure
| Recipient | Share |
|---|---|
| Liquidity Providers | 100% of swap fees (no protocol fee at launch) |
| Protocol Fee (when enabled) | Up to 25% of LP fees, governance-controlled |
The protocol fee switch is off at launch to attract LPs. It can be activated by governance vote to direct a portion of fees to the GX Treasury.
Revenue Model
GX Swap generates revenue through:
- Swap fees — 0.05% to 1% per trade depending on pool
- Protocol fee — Up to 25% of LP fees when enabled via governance
- Protocol-owned liquidity — GX Treasury earns LP fees on its own positions
Source
Deployed on Arbitrum One.