The decentralized derivatives swap GMX has proposed deploying its protocol on Coinbase’s newly launched Base, according to reports. The proposal has gained support from GMX community members, who favor scaling the platform to various blockchains.
GMX is currently the most extensive decentralized finance protocol on the Arbitrum platform, with $582M in gross value locked, as per DefiLlama. The platform offers spot and derivatives trading, and its native token, GMX, was recently trading at $77.25, up almost 90% this year.
Base, an innovative blockchain layer 2, has been created using the OP stack of Optimism, and it will integrate into the primary Ethereum blockchain network. Unlike the Arbitrum token recently distributed via airdrop, Base does not have an inherent token. Nonetheless, it is anticipated to play a pivotal role in the rapidly expanding range of layer 2 solutions that strive to enhance the scalability and effectiveness of the Ethereum network.
The proposal to deploy GMX on Base has generated excitement among members of the GMX community. Some see it as an opportunity to expand the platform’s reach and attract new users, while others believe it could help improve the GMX token’s overall liquidity.
Nevertheless, a few members of the forum have raised doubts about whether GMX’s anonymous creators would be required to provide identification records to Coinbase in accordance with anti-money laundering laws. During an interview with Bloomberg Radio, the CEO of Coinbase, Brian Armstrong, implied that the exchange would implement knowing your customer verifications upon the launch of Base.
Despite these concerns, many GMX community members remain optimistic about the proposal. Some have suggested that deploying on Base could make GMX a “first mover” in the emerging layer 2 ecosystem, potentially giving the platform an advantage over its competitors.
If the proposal is successful, it could pave the way for more decentralized finance protocols to deploy on Base and other layer 2 solutions. As the Ethereum network grows, layer 2 solutions are becoming increasingly important for improving scalability and reducing transaction fees, making it easier for users to access decentralized finance applications.
