How to Stake GMX and Earn Escrowed GMX (esGMX)
Risk warning. Trading perpetual futures and other leveraged crypto-asset products is high risk. A large share of retail traders lose money, so never trade with money you cannot afford to lose entirely. Disclaimer
Staking GMX pays out in three different reward streams at once, and one of them, esGMX, isn’t a token you can simply sell the moment you receive it.
This guide is part of TradeOnDEX’s GMX how-to series within Perpetual Futures.
Disclosure: TradeOnDEX may earn a commission from links to GMX on this page, at no extra cost to you. Full details at the end of this article.
What staking GMX actually pays out
Staked GMX earns three things simultaneously:
- A share of protocol fees, paid in ETH or AVAX depending on the chain, funded by a portion of trading, liquidation, borrowing, and swap fees.
- esGMX (Escrowed GMX), a non-transferable reward token.
- Multiplier Points, which boost your fee-reward rate the longer you stay staked (covered in more detail in a dedicated guide).
Why esGMX isn’t the same as regular GMX
The key difference: regular GMX is freely transferable and sellable at any time; esGMX is locked and cannot be sold or transferred directly. You have exactly two options for esGMX you’ve earned:
- Stake it, where it earns the same fee rewards as regular staked GMX.
- Vest it, converting it into regular, transferable GMX gradually over a 365-day period (covered in the vesting guide).
This means for you, concretely: an esGMX reward isn’t liquid the way a typical staking reward token might be, it requires either continuing to stake it or committing to a year-long vesting process before it becomes spendable GMX.
How to stake GMX, step by step
- Go to the Earn page on GMX.
- Enter the amount of GMX you want to stake.
- Click Stake and approve the transaction in your wallet.
- Wait for confirmation, your staked GMX immediately begins earning fee rewards, esGMX, and Multiplier Points.
Risk: what the reward structure actually commits you to
esGMX rewards aren’t liquid the way they might first appear. Seeing an esGMX balance grow can look like a straightforward yield, but that balance can’t be sold, realizing it as spendable value requires either an ongoing staking decision or a full year of vesting, a meaningfully different commitment than a typical liquid reward token.
Unstaking has real consequences beyond losing future rewards. As covered in more detail in the multiplier points guide, unstaking burns a proportional share of accumulated Multiplier Points, a real, permanent cost to exiting a staking position, not just a pause in future earnings.
GMX’s own tokenomics parameters, including reward rates, are subject to governance change. Fee-share percentages and reward mechanics have been adjusted by GMX governance before and can be again. Treat any specific rate as a snapshot, not a permanent guarantee, before making a long-term staking decision based on it.
Staking rewards depend on protocol fee generation, which depends on trading activity. Unlike a fixed-rate product, your ETH/AVAX fee rewards from staking scale with how much trading, borrowing, and liquidation activity actually happens on GMX, a quieter period for the platform means lower realized rewards, independent of your own staking decision.
GMX staking rewards at a glance
| Reward | Liquidity | What it requires to realize |
|---|---|---|
| ETH/AVAX fee share | Liquid, paid directly | Nothing further, accrues automatically |
| esGMX | Locked | Stake for further rewards, or vest over 365 days |
| Multiplier Points | Locked, burns on unstaking | Stake for fee rewards; lost proportionally if you unstake GMX |
See it for yourself
Before staking a large amount, decide upfront how you plan to handle the esGMX you’ll earn (continue staking it or eventually vest it), since it isn’t something you can simply liquidate on short notice. You can review the Earn page directly at gmx.io.
Frequently asked questions
Can I sell esGMX directly?
No, it’s non-transferable. You can either stake it for further rewards or vest it into regular GMX over 365 days.
What happens to my Multiplier Points if I unstake?
A proportional share of them is burned permanently, it isn’t just a pause in earning, it’s a real loss of accumulated boost.
Do staking rewards come from a fixed rate?
No, the ETH/AVAX portion depends on actual protocol fee generation from trading activity, so rewards vary with platform usage.
Is staking GMX the same as holding a stablecoin yield product?
No, rewards depend on trading activity and token price exposure to GMX itself; this is a token staking position, not a fixed-income product.
Affiliate disclosure
TradeOnDEX may earn a commission if you sign up or trade through a link on this page, at no extra cost to you. GMX’s own affiliate/referral terms are still being confirmed for this site, so links here are direct and untracked for now. This article is educational and is not financial advice. See our disclaimer for the full risk warning.
Risk warning
Trading crypto assets, and leveraged products based on them such as perpetual futures ("perps"), is high risk. A large share of retail traders lose money on these products. Leverage magnifies gains and losses alike and can push your loss beyond the amount you put in. Positions can be closed automatically (liquidation) before you get a chance to react, and some of the platforms we cover offer no negative balance protection.
Never trade with money you cannot afford to lose entirely. TradeOnDEX gives no investment advice, no personal recommendation, and no guarantee of any outcome. Every decision you make is your own decision and your own responsibility.