GMX-Like Perp DEX vs LineHub Perp DEX

The main difference for traders in comparison to a GMX-like Perp DEX is how the PnL (profit and loss) of their positions is settled.

In a GMX-like Perp DEX, if you go long on a cryptocurrency like Matic using USDC as collateral, when you close your position, you will receive Matic as your payout. So, the payout is in the same cryptocurrency that you traded.

In LineHub Perps, the settlement works differently. Let's say you go long on Matic using ETH as collateral. In this case, the PnL of your position, which represents your profit or loss, will be paid out in ETH instead of Matic. So, even though you traded Matic, your payout will be in ETH.

To put it simply, if you choose ETH as your collateral asset, it becomes your reference asset for calculating your profit or loss. When you close your position, you will receive the combination of your collateral (ETH) and the PnL (calculated in ETH) as your payout.

It's important to highlight the fee dynamics for LPs in relation to traders. LPs earn fees for providing liquidity to a platform, and these fees are accumulated directly into their LP position along with the PnL of their position.

• Traders Earning Money: LPs may experience a decrease in their position value as fees are deducted from their LP position when traders make profitable trades.

• Traders Losing Money: LPs benefit from traders' losses as the added liquidity helps increase their position value and potentially offset any losses they may have incurred.