Arbitrum’s GMX Traders

Source : GMX

We intend to analyze the traders utilizing the GMX platform on Arbitrum through this dashboard. Analyze trades to identify wallets that perform best. Compare how traders are performing across various assets and how traders are performing compared to liquidity providers.

An Overview : About Arbitrum

Through Arbitrum, Ethereum’s main blockchain (layer 1) is moved as much as possible from computation and data storage to reduce transaction fees and congestion.  Arbitrum is an Ethereum layer 2 scaling solution. The term “Layer 2 scaling solutions” refers to data storage outside of Ethereum’s blockchain. The L2 released its mainnet to developers in late May with promises of lower fees and greater transaction capacity. As a consumer, it will act as a separate blockchain that can be switched to using Metamask or Trust Wallet, and it will interact with various DeFi protocols. Uniswap, Etherscan, Chainlink, Sushiswap, Cream Finance, and many others are launching products on Arbitrum L2.The user transfers funds from an Ethereum wallet to Arbitrum L2 using https://bridge.arbitrum.io/ . In this case, they can use Uniswap to exchange tokens with gas fees estimated to be 50 times lower than those on the main Ethereum chain when using a DeFi platform like Arbitrum.

What is GMX And Its Features?

GMX offers low swap fees and zero price impact trades and supports both spot and perpetual trading. Through market making, swaps, and leverage trading, liquidity providers earn fees from a unique multi-asset pool.  Unlike crypto futures contracts, perpetual contracts have no expiration date. Perpetual contracts are derivatives whose value is derived from the underlying crypto asset, just like futures contracts. GMX Tokens are the utility and governance tokens for the GMX platform, granting participants access to a wide range of benefits and earning 30% of the platform’s revenue.

  • It reduces the risk of liquidations because an aggregate of high quality price feeds determines the timing of liquidations. As a result, temperory wicks will not affect positions.
  • Reduce costs by entering and exiting positions with minimal spreads and negligible price impacts. Obtain the best possible price without incurring additional fees.
  • A simple swap interface makes it easy to open positions. You can swap from any supported asset into a position of your choice conveniently.
Source : GMX Features

Approach

As seen in this dashboard, we extracted all these data from contract_address = ‘0x4277f8f2c384827b5273592ff7cebd9f2c1ac258’ based on how traders using Arbitrum with GMX platform.

  • First look at the new GMX platform user interactions
  • In the next section, you can see how many wallets interact with GMX By Token each day
  • In addition, Transaction Volume by Token
  • We can then see the Top 20 GMX Wallets by profit
  • Also, we can see how liquidity providers are growing
  • Find out the Active Liquidity Providers in the GMX Ecosystem
  • Last but not least, here are the top liquidity providers who made a profit

The Performance Of Traders Across Various Tokens

From the below graph we can see the frowth of new users who are all interacting with GMX platform over a period of time . There were 5.88K new wallets between April, 2022 and September, 2022.  The maximum number of New Wallets of 828 was observed in June 26 to July 2, 2022, and the minimum number of New Wallets of 2 was observed in April 17 to 23, 2022. 2022 total New Wallets decreased by 84% in W38. Our first observation is a very low number of new users, but we can see the trend is increasing over time. As time goes by, we can see the trend decreasing again. Again, we can see that the number of new wallets has increased from August 2022 onward.   The total number of new wallets in W38, 2022 is lower than normal, and it is higher than normal in W26, 2022.

The GMX Odyssey will resume on June 26-July 02,2022 with NITRO, a scaling solution for the Arbitrum ecosystem. After the Arbitrum Odyssey resumes, all users who have completed the three tasks will be able to claim their GMX Odyssey NFT. There may be a reason why the number of new users grew suddenly with the GMX ecosystem. 

On the below heat map, we can clearly see the sudden growth of users on Jun 2022 and again the trend is showing to rise on August 2022 suddenly. In August 2022 total new wallets increased by more than 10%.

In terms of wallets interacting with GMX by Tokenwise, there were 170.56K wallets between W16, 2022 and W38, 2022. Of the total wallets, Top 2(WETH and USDC) Tokens accounted for 93.18%.  WETH has the highest total wallets with 110.52K, while FRAX has the lowest total wallets with 570 (FRAX). A maximum of 30K wallets were observed in W26, 2022, and a minimum of 31 wallets were observed in W16, 2022. From W16, 2022 to W38, 2022, the number of total wallets increased. It is therefore evident that wallets are on the rise. Total wallets in W38, 2022 are lower than usual, while total wallets in W26, 2022 are higher than usual. There is a significant positive correlation between WETH wallets and USDC wallets.

Based on the graph below, we can see the transaction volume for GMX by tokenwise. During April 2022 through September 2022, $1.65B worth of tokens were traded (USD). 44.63% of total Token Volume (usd) was accounted for by USDC Tokens. With a total token volume of $376.87K (UNI) and a total token volume of $734.55M (USDC), the lowest total token volume (usd) is $376.87K (UNI). During September 2022, there was a maximum token volume of $523.03M, while there was a minimum token volume of $422.42K during April 2022. By August 2022, total token volume (USD) had doubled. There is an upward trend in token volume (usd). In September 2022, DAI had the highest Token Volume(usd) trend. UNI, on the other hand, trended downward in September 2022.  It is apparent that Token Volume(usd) increased significantly in June 2022. In this case, USDC played a major role. 

Top Performing Wallets In Trades

There is a total profit of $8.37M across the top 20 wallets. In total, 33.24 percent of profits were generated by the Top 3 Wallets and 50% were generated by the Top 5 Wallets. There are two profit totals: the lowest is $168.58K (0x66be2b7ec3c5524c2c741e9421714b39079969e4), while the highest is $1.04M (0x62862b73a73a1b0554fb321059a0dde702ea7e6).

Traders Performance In Terms Of Liquidity Providers

We can see from the graph below that there is an increase in new liquidity providers. It is estimated that 13.77K new LPS were created between April 2022 and September 2022. In June 2022, the maximum number of New Lps was 5.25K, and in April 2022, the minimum number was 4. There has been an increase of more than 100% in new Lps for August 2022. A trend of increasing new LPS has been observed.

From April, 2022 to Sept, 2022, the active liquidity providers in GMX ecosystem had 22.01K wallets.  A maximum of 5.23K wallets was observed in Jun26-July02, 2022, and a minimum of 1 wallet was observed in May01-07, 2022.  There is an increasing trend of active liquidity providers in the GMX Ecosystem. Wallets in July03-09, 2022 is lower than normal, and Wallets in Jun26-July02, 2022 are higher than normal.

We can see from the graph below that the top 20 liquidity providers made profits over time. The total profit across all wallets is $6.31M. A total of 30% of profits were generated by the Top 2 liquidity providers, while 54% were generated by the Top 5 LPers. Its lowest total Profit is $132.03K (0x24f8d92794a283b454d1fc32722f51a4f3bc1ae5), and its highest total Profit is $1.04M (0x62862b73a73a1b0554fb321059a0dde702ea7e6).

Observations

  • The above analysis shows that both GMX and its protocol have done well from April 2022 to Sept 2022.
  • According to the above analysis, new users interacting with GMX ecosystem were at their peak between June 26 and July 02,2022.  There is a possibility that this is due to the GMX Odyssey, which will resume from June 26 to July 2, 2022 with NITRO, a scaling solution for the Arbitrum ecosystem. Users who have completed the three tasks will be able to claim their GMX Odyssey NFT after the Arbitrum Odyssey resumes. The reason why more users came during that time to the GMX platform may be because of this.
  • Over the top 20 wallets, there is a total profit of $8.37M. Profits from the Top 3 Wallets generated 33.24 percent, while profits from the Top 5 Wallets generated 50%. 
  • On this GMX platform, USDC and WETH are the most popular assets, making up most of the transactions over time.As can be seen from the above analysis, traders performed at their best in terms of liquidity providers during the week of June 26-July 2, 2022. Arbitrum Odyssey has attracted the most new users to the GMX platform during this period, which explains the new user growth of the liquidity providers.
  • Taking into account the above analysis, if we examine the top 20 liquidity providers over time, the lowest total profit made by LP was $132.03K (0x24f8d92794a283b454d1fc32722f51a4f3bc1ae5), while the highest total profit made by LP was $1.04M (0x62862b73a73a1b0554fb321059a0dde702ea7e6).
  • Additionally, we can see more and more active user interactions on GMX platform since the GMX Nitro upgrade of Arbitrum a few weeks ago. Liquidity providers are increasing their trades as well.

Reference Query

WITH first_tx as (
  SELECT 
  	date_trunc(day, block_timestamp) as date, 
  	origin_from_address as wallet
  FROM arbitrum.core.fact_token_transfers
  WHERE to_address IN ('0x09f77e8a13de9a35a7231028187e9fd5db8a2acb')
  QUALIFY row_number() over(partition by origin_from_address order by block_timestamp asc) = 1
)
SELECT 
  date, 
  count(wallet) as new_wallets
FROM first_tx
GROUP BY date 

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