Crypto exchange GMX is looking to expand its platform by deploying on Coinbase’s newly announced layer 2 blockchain, Base. GMX, which currently offers spot and derivatives trading, has gained the support of its community to move to another blockchain.
The exchange currently has USD 582 million in total value locked across Arbitrum and Avalanche, making it the largest decentralized finance protocol on Arbitrum.
Base is a layer 2 blockchain developed using Optimism’s OP stack, which will feed into the Ethereum mainnet and will not feature a native token like Arbitrum’s recently-airdropped token. While the majority of GMX forum users are in favor of the exchange becoming a “first mover” on Base, some members of the community raised concerns about GMX’s pseudonymous founders needing to submit identification documents to Coinbase in line with anti-money laundering regulations.
During an interview on Bloomberg radio, Coinbase’s CEO, Brian Armstrong, suggested the possibility of the upcoming Base blockchain having KYC (know-your-customer) restrictions. Despite some concerns from the GMX community about the pseudonymous founders being required to submit identification documents to Coinbase in accordance with anti-money laundering regulations, the native token of the exchange,
The proposed move to the Base blockchain could potentially benefit GMX by providing it with increased liquidity and a broader user base since Coinbase is a well-known and widely-used exchange within the crypto industry.