GMX traders incurred the largest liquidation loss in history yesterday

On June 14, the on-chain derivatives protocol GMX experienced a large liquidation, with GMX traders suffering a record net loss of $8.67 million on the day; at the same time, the GMX protocol captured $3.44 million in fees on the day, the second highest in history, but the difference is that the fees captured in this protocol were mainly contributed by liquidation. 

GMX traders have been accumulating profits for the past three months, but after yesterday's significant liquidation, traders have changed from accumulating profits to accumulating losses. 

The GLP liquidity pool is the counterparty to each trade on GMX according to the mechanics of the GMX protocol. The liquidity provider deposits assets into the GLP pool to provide liquidity to GMX. In return, the GLP holder receives a portion of the fees generated by the GMX platform. If a trader loses money, the GLP holder will earn additional revenue. The current annualized rate of return for GLP liquidity providers is about 10 %.