Someone asked: How do decentralized perpetual contracts work?
I usually answer like this: GMX V1 used GLP as its liquidity pool, while V2 switched to GM pools segmented by market. The order book model works much like matching on a centralized exchange, with prices determined by buyers and sellers. The pool model relies on oracle pricing, so any oracle issues directly affect trade execution.
$HYPE 85.13 (+0.11%)
In what context did you figure this out?
Just my personal opinion—don't take it too seriously.
I usually answer like this: GMX V1 used GLP as its liquidity pool, while V2 switched to GM pools segmented by market. The order book model works much like matching on a centralized exchange, with prices determined by buyers and sellers. The pool model relies on oracle pricing, so any oracle issues directly affect trade execution.
$HYPE 85.13 (+0.11%)
In what context did you figure this out?
Just my personal opinion—don't take it too seriously.