GMX, the decentralized trading protocol on Arbitrum and Avalanche, has announced the launch of Time-Weighted Average Price (TWAP) orders to improve trading execution for users in early 2025.
The introduction of TWAP orders aims to enhance trading strategies, potentially increasing user retention and trading volume, aligning GMX with professional trading standards.
GMX Expands Capabilities with TWAP Order Launch
The GMX protocol has expanded its trading capabilities by introducing TWAP orders, an advancement aimed at improving execution quality. This feature is part of GMX’s ongoing enhancement efforts on its v2 platform.
TWAP orders allow traders to execute orders over time, reducing impact on market prices. GMX’s team has been working predominantly on such core upgrades, focusing on user experience and protocol functionality.
TWAP Orders to Boost GMX Trading Volume
Market participants expect the new order type to attract more sophisticated trading strategies, potentially driving up trading volumes on GMX. Industry observers note that such features align with professional trading standards.
Implementing TWAP is likely to encourage increased asset stability and reduced slippage, benefiting both institutional and retail traders. GMX’s robust treasury and continuous protocol health support this trend.
“As we start 2025, GMX is excited to unveil the development plan for the months ahead… Key milestones achieved in the past year… included shifts like auto-cancelling orders, atomic withdrawals, and the switch to Chainlink Data Streams’ time-based oracle. Today, the GMX DEX is trusted by thousands of users every day, facilitating billions of dollars in weekly trading volume.” — GMX Development Team, GMX Substack
DeFi Success Patterns Influence GMX’s TWAP Strategy
Similar features introduced by platforms like dYdX and Synthetix have historically led to greater user engagement and protocol adoption. GMX’s strategic pivot to TWAP mirrors these successful approaches.
According to Kanalcoin analysts, the TWAP feature could strengthen GMX’s positioning in the DeFi space, fostering trust and reliability by enhancing trading efficiency and mitigating short-term market impacts.
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