thecoinrepublic.com
During last week, prominent Ethereum-based Layer 2 scaling solution Arbitrum launched its Nitro upgrade. There were several vital improvements that came along with the upgrade. This resulted in somewhat fulfilling the expectations while being left disappointed in others. For instance, the launch of a native Arbitrum token was awaited for quite some time but it did not happen.
However, the upgrade got a perpetual futures exchange based on Arbitrum, GMX. The trading exchange has soon become one of the popular protocols after its launch.
The recent Nitro upgrade of Arbitrum intends to reduce the transaction fees, boost the transaction speed and bring improvements in user experience for developers on the network. It is expected to reduce the fees by almost 27% while compressing the data which was sent for validation to Ethereum.
Additionally, the upgrade would enable application developers to compile code. They could use the standard languages for this despite using traditionally used custom-designed software.
Arbitrum scaling was witnessing competition in the Ethereum ecosystem due to the presence of Optimism, another contender in the same space. Optimism also does not possess any native asset, while Arbitrum depends on revenue on protocol usage.
This makes the interested investors look towards the perpetual futures exchange of Arbitrum. GMX is the permissionless decentralized trading exchange and one of the few products within its ecosystem.
GMX exchange makes users able to leverage their trade that too up to a significant 30x. In recent months, the protocol has also recorded a massive amount of transaction volume. On top of that, in terms of daily fee revenue, GMX moved on ferociously and stayed behind only after some of the largest protocols within crypto space including Uniswap, Synthetic and Aave. It runs on Arbitrum and Avalanche both given it’s a multi-chain protocol.