MDEX is a decentralized exchange built on the Huobi ecological chain Heco. Before the governance token MDX was launched on the Huobi trading market, it had opened transactions on 9 exchanges including MXC and BiKi.
MDEX has attracted the attention of many exchanges because of the growth effect of funds poured into it. On January 6, MDEX went online. On the day of mining, the total lock-up value (TVL) on the site reached 520 million U.S. dollars; 5 days later, its TVL exceeded 1 billion U.S. dollars for the first time.
The rapid growth of MDEX funds is due to its "dual mining" model. In addition to Swap's most common liquid mining, MDEX has introduced transaction mining, which means that users can also receive MDX rewards for transactions. In addition, MDX has added a repurchase and destruction mechanism to the design of the economic model.
MDEX's TVL breakthrough of $2 billion is of iconic significance. It has become the largest decentralized exchange on the Heco chain. Following UniSwap and SushiSwap on the Ethereum chain, it has taken the First place in the entire DEX sector. MDEX's CTO Sky said that MDEX's goal is to challenge UniSwap's leading position. After all, DeFi applications will experience the situation where users shift their positions due to the decline in annualized revenue. How to enter the long-distance race and stay ahead is a test of MDEX's "physical strength" in governance innovation.
Why can MDEX attract capital and traffic in a short period of time?
The opening price of the listing was 0.5 US dollars, and the highest is 10US dollars, the highest increase ever. The biggest difference between MDEX and other DEX is its "dual mining mode". Most DEX only has liquidity mining, while MDEX not only has liquidity mining, but also transaction mining. Liquidity mining is very common, and it is easy to understand that it is to obtain MDX token rewards by adding liquidity. And transaction mining is to participate in MDEX transactions and provide the platform with transaction volume to obtain MDX token rewards.
Currently MDEX has a total of 12 trading mining pools and 11 liquid mining pools.
The highest liquidity mining APY is MDX/USDT, with an annualized APY of nearly 600%, while the USDT/HPT with the highest trading mining APY alone is daily chemical APY exceeding 6800%.
DEX is a high-frequency application in the DeFi field, and user experience is very important.
At the transaction level, users want low transaction fees, low slippage, low spreads, fast transaction processing time, and fewer transaction failures. It is also based on this consideration that UniSwap, Synthetix and other Ethereum Layer 1 DEXs seek to migrate to Layer 2.
After examining the performance of MDEX exchanges, basically users' transaction demands can be realized here, and users are willing to participate in transactions on such a platform. Moreover, MDEX is based on the Huobi ecological chain and has community governance, so users can trade on the platform more at ease.
Users can not only participate in liquidity mining, but also get MDX token rewards for participating in transactions, and staking MDX can also get HT airdrops. Take a multi-pronged approach to make users willing to stay on the platform.
How to retain users when APY drops?
For a DEX that has just been online for 20 days, MDEX, which can lock in a value of more than 1 billion US dollars, is eye-catching. However, in the eyes of users, the problem that DEX platforms cannot avoid is how to retain users when the rate of return drops. Most people that said on twitter that MDX existing APY can attract him to continue mining
, "If the rate of return does not work in the future, I will quit and change to another "car"." MDEX’s community consensus was initially established and needs to be stabilized. Of course, revenue is the biggest attraction for users to participate in DeFi at the moment. For MDEX, how to make applications sustainably generate revenue and retain users depends on the balance between the amount of MDX output and the value market.
In this regard, MDEX CTO said that the highlight of MDEX is that on the one hand, it integrates the excellent governance of DEX on the market. On the other hand, it also transparently uses smart contracts for the operation of centralized exchanges to repurchase and destroy, and trade mining. , Automated execution, maybe not so original in these two aspects, but for MDX, a governance token, it can achieve a certain balance between its output and deflation.
MDEX’s original point is to integrate the Heco chain asset HT into the MDX governance, so that the application and the underlying network can mutually empower each other in value, and encourage the community to pledge MDX to provide liquidity for the market. "For a trading application, Sufficient asset liquidity is the manifestation of vitality, and liquidity is contributed by users. Of course, incentives are also essential."
Cryptocurrency exchanges can be regarded as banks, while MDEX can be regarded as banks in the world of Huobi. Mining is equivalent to making an annualized income product in a bank. The annualized income is high, and customers are of course willing to do it. Then the bank tells you that you can get MDX as long as you deposit and transfer money. After you have HT and MDX, you can also participate in other Huobi Eco-Chain projects and gradually become a loyal user of Huobi Eco-Chain.