Crypto Exchange GMX Proposes Deployment on Coinbase's Base Blockchain

Decentralized derivatives exchange GMX has the support of its community to deploy the protocol on crypto exchange Coinbase's (COIN) recently announced layer 2 blockchain, Base.

Several members of the GMX community are in favor of expanding the platform to another blockchain, according to a post on the GMX governance forum.

GMX offers spot and derivatives trading. It has $582 million in total value locked, making it the largest decentralized-finance protocol on Arbitrum, according to DefiLlama.

Base is a layer 2 blockchain that has been developed using Optimism's OP stack. It will feed into the Ethereum blockchain's main network and won't feature a native token, unlike the recently airdropped Arbitrum

While the majority of GMX forum users were in favor of the exchange becoming a "first mover" on Base, others had concerns over whether the project's pseudonymous founders would need to submit identification documents to Coinbase in line with anti-money-laundering regulations.

In an interview on Bloomberg Radio, Coinbase CEO Brian Armstrong hinted that the exchange will establish know-your-customer checks when Base goes live.

The GMX token, the native token of the GMX exchange, was recently trading at $77.25. It's up almost 90% this year, according to Cryptowatch.