The decentralized exchange MDEX, which was first launched on HECO, now has also provide services on the Binance Smart Chain BSC, which is also the rare decentralized exchange in the industry that has deployed both the Huobi Ecology and Binance Ecology. Today we take a look at the recent relevant data of MDEX, and speculate how MDEX will perform after the cross-chain.
MDEX usage experience and data performance
MDEX is a comprehensive decentralized trading platform. It was launched on the Huobi Eco-Chain HECO on January 6, 2021, and MDX (Platform Token) launched on January 19 to start the "dual mining" mode of liquidity mining and transaction mining. The model, combined with fee repurchase and DAO governance, forms a cyclic system of MDX value.
The handling fee is low : MDEX transaction fees are as low as 0.1 cents per transaction, and 1 US dollar equivalent HT (or BNB) can support hundreds or thousands of transactions. Compared with the decentralized exchanges such as UniSwap, Sushiswap, and 1Inch on the ETH main chain, it is easily 50 -$100 transaction fee, MDEX reduces the transaction fee to an almost negligible level.
Slippage is low: Because the liquidity pool is generally large, the slippage can be as low as 0.5% or less, and mainstream trading currencies such as BTC, ETH, HT, etc. can be switched to 0.1% slippage and the transaction can be completed normally. The problem of DEX trading slippage is one of the core problems that plague DeFi traders. Because of the slippage problem, they dare not or cannot conduct relatively large transactions on DEX. MDEX, both HECO and BSC, has TVL of more than 2 billion US dollars, which means that its trading depth is very good, ETH/USDT, BTCB/USDT, FIL/USDT, BUSD/USDT, WBNB/USDT, LTC/USDT, DOT/USDT For trading pairs, in most cases, the slippage is ≤0.1%. This slippage control is basically higher than that of most centralized exchanges, let alone decentralized exchanges.
Confirmation time 3 seconds: Compared with the 15s-1min confirmation time on the ETH main chain, the speed is increased by more than ten times.
Trading is mining: Transaction mining is a unique mechanism of the MDEX platform. The transaction will obtain the MDX output based on the cumulative transaction quota, and the value of the MDX platform currency obtained can cover the slippage fee expense, which is equivalent to subsidizing the handling fee and changing the transaction procedure, so the fee is reduced to zero (or even a negative value, that is, the subsidy MDX value is greater than the transaction fee). The transaction mining fee subsidy has reached 500 million US dollars. The extremely low handling fee and the "low slippage" feature provide enough trading and mining arbitrage space, so the profitability of trading mining can be so high.
Liquidity mining has high returns: In the three months since MDX went online, a total of 180 million MDX has been mined, worth more than 700 million U.S. dollars. The external intuitive manifestation is that the annualized rate of return (APY) is very high.
The above is the basic experience of using the MDEX platform.
Data performance: TVL 4.64 billion US dollars (Heco+BSC)
After MDEX launched on January 6, on February 1, the platform TVL (total lock-up volume) exceeded US$1 billion, and then the transaction amount exceeded US$2 billion for the first time on February 19th. According to the official data , the TVL of MDEX currently reaches about 4.64 billion U.S. dollars , and the 24h transaction amount is 1.74 billion U.S. dollars. Among them, the TVL on both HECO and BSC chains exceeded US$2 billion. Let's compare Uniswap, the leading DEX project in the industry:
Uniswap's TVL is 8.14 billion U.S. dollars, and its 24h trading volume is 1.45 billion U.S. dollars.
MDEX's TVL is about 57% of Uniswap's TVL, while trading volume is 120% of Uniswap's.
The MDEX platform's current repurchase amount has exceeded 84 million U.S. dollars, and the pending repurchase amount has exceeded 25 million U.S. dollars. The current output of liquid mining is 220 million MDX, valued at more than $600 million.
The overall amount of funds on the Huobi ecological chain HECO is 6.8 billion U.S. dollars, and the TVL of MDEX on HECO is 2.4 billion U.S. dollars, which currently accounts for about one-third of the total TVL on the Huobi ecological chain HECO. MDEX has grown into a big tree in HECO, and needs to cross-chain to different ecosystems for greater development.
At the same time, users have a real strong demand for cross-chain, and the voice is very high. MDEX focuses on user experience, which is also in line with the goal of "large-scale decentralized cross-chain transaction agreement" when MDEX was founded. The cross-chain move is imperative, and it has now reached the stage of completion of the deployment.
Points worth noting
According to official information, I summarize the following points:
1. MDX has been mined on HECO chain to occupy 18% of the total amount of all, and 31% of the total amount has not been produced. After the MDEX cross-chain is completed, the BSC has not produced 31% (the two sides have not produced the same). The overall proportion of mining output is 80%.
2. The total amount of MDX has not changed, 80% of the total amount of mining has not changed, halved 45 days ahead of schedule, and the team part+ investor share remains unchanged. This action allows the growth rate of MDX circulation to be controlled and the interests of ordinary investors are more protected.
3. The transaction fee is 0.3%, while 0.1% of the transaction fee is used for ecological funds, 0.18% is used to reward MDX pledgers, and 0.02% is directly destroyed, further deflating MDX. The handling fee will be subsidized in transaction mining.
4. LP liquidity mining and single-currency pledge mining are simultaneously opened, among which a large number of popular mainstream currencies can be single-currency pledged mining such as WBNB, BTCB, BUSD, USDT, ETH, USDC, ADA, LTC, XRP, Link, etc. Wait, the speed of individual mining also depends on the size of each fund pool.
5. Transaction mining. Among them, BUSD/USDT and USDC/USDT have the highest transaction mining efficiency, with 8 MDX rewards per block, and both trading pairs are stablecoins. In this case, the slippage is extremely low, which is transaction mining. The return of transaction mining makes transaction fees almost zero, and even large well-known centralized exchanges have transaction fees. In terms of transaction fees, Mdex as a decentralized exchange is already superior than most centralized exchanges.
Review data: On April 8, 2021, MDEX launched Binance Smart Chain BSC, TVL reached 500 million US dollars within 5 seconds, 20 minutes TVL 800 million US dollars, 40 minutes TVL 1 billion US dollars, 1 hour TVL 1.3 billion US dollars, 2 hours TVL is 1.5 billion U.S. dollars, 4-hour TVL is 1.84 billion U.S. dollars, 12-hour 2 billion U.S. dollars, transaction volume is 2 billion U.S. dollars, and TVL is up to 2.7 billion U.S. dollars. In other words, MDEX's lock-up volume and trading volume on BSC have quickly reached and exceeded US$2 billion, which has been the same as the lock-up volume of HECO on the Huobi Ecological Chain.
3 months of MDEX online data:
MDEX's 24-hour trading volume surpasses CEX such as FTX, Bitfinex, Gate, Hoo and MXC, ranking 33rd.
MDEX's 24-hour trading volume accounted for the highest share of the DEX market at 42.49%.
The total TVL of MDEX dual-chain exceeded $4.3 billion, and the cumulative transaction volume exceeded $197.2 billion.
The highest APY for liquid mining is 452%, and there are only 43 days left before the halving.
MDEX24H trading volume exceeds the sum of these exchanges: Uniswap+Pancake+SushiSwap.