Super DEX! What are the strengths and achievements of MDEX?

Editor's Note: This article comes fromDeep Chain Finance, reprinted by Odaily with authorization.

Deep Chain Finance News At 3:00 p.m. on January 27, KiKo, Chief Marketing Officer of MDEX, was a guest at the Deep Chain Finance Online Salon, sharing the theme of "Super DEX! What are the strengths and achievements of MDEX?" The following is the sharing record, compiled by Deep Chain Finance.

question Time

question TimeDeep Chain Finance:

KiKo：On January 19, MDEX officially started transaction mining; on January 26, MDX, the token of the MDEX platform, was launched on Huobi Global. In just a few days, MDEX has become the focus of the Heco ecological chain. So what kind of DEX is MDEX?

MDEX is the preferred platform for Huobi ecological chain Heco's full ecological currency trading. It is a decentralized trading product that automatically makes a market based on the concept of a capital pool. As a fully functional DEX, it also proposes and implements the and the dual-chain DEX model of the Ethereum public chain. Integrating the advantages of low transaction fees on the Huobi ecological chain and the prosperity of the Ethereum ecosystem, it supports the "dual mining mechanism" of liquidity mining and transaction mining.

MDEX is committed to building a DeFi platform integrating DEX, IMO, and DAO on the Huobi ecological chain Heco, providing users with a decentralized platform that is more secure and credible, with more diversified asset selection and configuration, and a higher expected return on investment. Token exchange service. MDEX is the core hub of value exchange in the Heco ecosystem and an important attempt to connect the CeFi and DeFi markets.Deep Chain Finance:

KiKo：At present, UniSwap, as the leading DEX, mainly faces two major problems: the free loss of LPs and the high slippage of large transactions. But this is also the cooperation between Curve and Sythetix to launch cross-asset exchange, and SushiSwap v2 launched a unilateral market-making solution similar to DODO and Bancor. In comparison, what innovations does MDEX based on the Heco ecological chain have?

Neither the cross-asset exchange nor the unilateral market-making solution you mentioned can solve the problems of high gas fees, high slippage, and slow confirmation speed. These schemes are not pioneering schemes, but defensive schemes, which cannot solve existing problems in essence.

In terms of infrastructure: the MDEX confirmation time is 3 seconds, the cost of a Swap transaction is less than 0.1 cents, and 1 dollar of funds can support 1,000 Swap transactions. Optimizing an ecosystem and a model requires innovative optimization of infrastructure.

From the perspective of operation strategy: MDEX uses strategies such as transaction mining and liquidity mining to attract funds, and after the capital pool expands, the transaction slippage is determined to be low. Generally speaking, the slippage is around 0.5%, and often reaches 0.1 %the following.Deep Chain Finance:

KiKo：At present, most DEXs provide dividends for transaction fees and transaction mining dividends for market-making LPs. How does MDEX provide incentives for market-making users?

The total amount of MDX is initially set at 1 billion. 80% is used for liquidity mining and transaction mining on Heco, each accounting for half. Transaction mining and liquidity mining each generate 1,152,000 MDX per day, and MDX has a repurchase and destruction plan, can participate in DAO community governance and have voting rights, and can get HT airdrops by pledging MDX, etc. During the actual operation, users will find that after multiple transactions, their own funds are still growing after excluding the profit from the price difference of the currency, because the mechanism of transaction mining determines this result. The LP liquidity mining pool is stable and high-yielding, and most liquidity pools can reach 200%+APY (annualized rate of return).Deep Chain Finance:

KiKo：How does MDEX build the dual-chain DEX of Huobi ecological chain and Ethereum? We all know that DEX is an important part of the DeFi atomic layer. Regarding Ethereum's complete DeFi ecosystem, how can MDEX become the cornerstone of Huobi's ecological chain DeFi?

Answer the first question first: MDEX is built on the Huobi ecological chain Heco, and Heco is compatible with Ethereum EVM and can be used directly with simple configuration (such as MetaMask on the web or TokenPocket on the mobile). The address is still the original Ethereum address, and the chain can be freely switched to Heco. This switch and use experience is very smooth.

First of all, "Ethereum has a complete ecosystem", this statement is correct in the past. The current DeFi of Ethereum has indeed developed a lot, but focusing on the present and the future, it is far from being "perfect". Everyone The friends in the group should all have used UniSwap or SushiSwap, etc. The gas fee for the transaction, the lag time, and the slippage of the transaction all greatly affect our investment and our user experience. MDEX is the hub of value exchange in the Heco ecosystem and is in a key position. Overcome the problems of slippage, gas fee, confirmation time, etc., and improve the DEX experience on Ethereum by more than ten times. The so-called "flowers and butterflies come naturally", which is why MDEX's transaction volume, lock-up volume, and number of users have repeatedly hit new highs.Deep Chain Finance:

It is indeed "Flowers and Butterflies Come". I saw that on January 25, 2021, the 24-hour transaction volume of MDEX exceeded 1.3 billion US dollars, exceeding the combined daily transaction volume of UniSwap and SushiSwap. So what is the current number and composition of the participating user base on the MDEX platform? After the launch of transaction mining, how is the negative transaction fee achieved? How is the APY performance of mining? How to continue to maintain this achievement?

KiKo: At present, the number of daily active users has reached 45,000. The group consists of three aspects: first, UniSwap and SushiSwap users, that is, long-term DeFi investors, will try MDEX when they see it. After trying it, they find that the experience is excellent and the profit is good. Just stay and continue to participate in mining, trading, and investment; second, users of centralized exchanges, because they missed the DeFi boom before, and now MDEX can easily participate through simple settings, so come directly, and feel that the experience Very good, I will continue to participate in the platform deeply; third, after the users come, they feel that the user experience and profit effect are good, and they recommend it to their friends. This kind of secondary communication and diffusion brings a lot of users.Deep Chain Finance:

KiKo：How to achieve negative transaction fees and high APY?

The negative transaction fee is due to the MDEX transaction mining mechanism. MDEX is generated for each transaction, and the transaction fee is less than 0.1 cents at a time. This is how the negative transaction fee came about. Some users have actually measured and exchanged 2000 USDT for various assets in MDEX, and then exchanged it back, and found that the money has increased. This is the power of transaction mining. High APY is divided into two aspects. The above mentioned is the high income of transaction mining, and the other aspect is the income of liquidity pool mining. At present, most of the APY is maintained at more than 200%, and the highest can reach more than 1200%.

"Maintain this result", we have never thought about maintaining this result, what we have to do is to continue to grow, although this result looks good, but if we feel that we need to maintain a defensive position, then it is wrong. If a project does not advance, it will retreat. We will optimize the MDX model such as the repurchase and destruction plan, such as pledge MDX to obtain HT airdrops, such as currency holders participating in community governance, and we will further improve the experience and profitability of MDEX. Maintaining performance is the first step, and then doing it well better.Deep Chain Finance:

KiKo：Compared with the weak economic model of UNI tokens and the restrictive nature of community governance, the function and value of governance tokens have been criticized by users. What are the optimizations of the economic model of MDX, the platform token of MDEX? What are the incentives for the MDX token?

The total amount of MDEX is initially set at 1 billion pieces. 80% is used for liquidity mining and transaction mining on Heco, each accounting for half. 10% is used as a team reward for team operations, technology research and development, etc., and will be unlocked in 24-month smart contracts one month after launch. 7% is used as an early investor share to provide more sufficient and beneficial funds and resources for the development of MDEX; 3% is used for marketing and brand building; it will be unlocked in 12 months after going online.

MDEX will have more incentive programs, such as MDX tokens for DAO community governance (proposal and voting), pledge MDX to get HT airdrops, MDX has repurchase and destruction plans, etc. The future plan is to continue to optimize the MDEX user experience and strive for excellence; expand the community scale; increase the profit effect.Deep Chain Finance:

KiKo：We know that MDEX has been launched on Huobi Global, so how to understand the relationship between MDEX and Heco?

The relationship between MDEX and Heco is a bit like the relationship between UniSwap and Ethereum, but different. Ethereum is a public chain, while Heco represents the Huobi ecosystem. MDEX is the trading platform of Heco ecology and the core hub of value exchange.Deep Chain Finance:

KiKo：Facing the gradually saturated DEX market and the stickiness of existing DeFi users, what is the future plan and roadmap of MDEX?

Let me disassemble your question first. From different data websites, it can be concluded that the overall transaction amount of DEX accounts for less than 5% of the transaction amount of CEX for a long time. From this level, DEX still has a lot of room for improvement. As for the degree of saturation, I think what you are talking about is the DEX competition landscape. Now there are many DEXs such as UniSwap, 1inch, Curve, etc., which seem relatively saturated.