DeFi Dark Horse: MDEX Decentralized Cryptocurrency Exchange

Project Reviews / 04.03.2021

The rapid growth of DeFi (Decentralized Finance) has seen an increase in the demand for technical infrastructure and made the existing DeFi sector very dynamic. Most importantly, DeFi growth has brought congestion in the Ethereum blockchain resulting in an immense rise in the GAS fees and higher ETH prices. The effect has been the increased development of other chains, notably the Huobi Ecological Chain (Heco) and its platforms. 

One such platform built on the Heco Chain, taking the Decentralized Exchange (DEX) sector by storm, is MDEX. The decentralized exchange has been in existence for less than two months. Still, it has turned out to be the largest project in the current Heco ecosystem surpassing the crypto market’s most popular DEX duo SushiSwap and UniSwap in just eight days into its existence. The platform launched mining on January 19th, and in 8 days, the MDEX total liquidity pool (LP) pledge amount exceeded USD 1 billion. The 24-hour transaction volume exceeded USD 1.4 billion, more than Uniswap and SushiSwap. At the time of writing, the Total Value Locked (TVL) locked on MDEX stands at 1,947,791,089.58 USDT with a 24hrs trading volume of $5.5 billion

Why has MDEX realized immense growth in such a short time? Here, we look at MDEX in detail and finally compare it with the other top two DEX duo: SushiSwap and Uniswap.   

MDEX Overview

MDEX seeks to become the largest platform that integrates the governance of DEX, IMO/ICO, and DAO tokens on Heco and Ethereum to offer users a safer and more reliable asset selection and configuration. The platform is essentially a market-making decentralized exchange based on the idea of fund pools. It implements a hybrid mix-chain DEX model based on the Heco Chain and Ethereum. The premise behind this mix-chain is to combine the advantages of the low transaction fees of the Heco chain and the immense potential of the Ethereum blockchain.

By leveraging the mix-chain DEX model, the platform cleverly integrates the excellent governance of DEX tokens and the financial value of CEX tokens. This enables the platform to uphold automation and transparency through transaction mining via smart contracts and implementing repurchase & destroy. Repurchasing and destroying MDX dramatically contributes to the equilibrium of its deflation and production. Currently, the platform has repurchased over 15 million USDT and distributed over 9.95 million USDT through airdropping with a real-time deflation rate of 7.35%  

What Sets MDEX Apart from Other DEX?

The significant features in MDEX that set it apart from other DEX and DeFi platforms built on the Heco chain are: the unique mechanism of dual mining (liquidity and transaction mining) and repurchasing and destroying MDX to create a deflationary effect. 

Of specific interest is the unique “dual mining mechanism” where the platform implements both transaction and liquidity mining. MDEX becomes the first “dual-chain /dual-mining” DEX on the Huobi Eco-Chain by implementing dual mining. The dual mining mechanism involving liquidity mining and transaction mining completes an ecological “closed-loop,” which greatly supports liquidity on the platform. Compared to other DEX based on the Ethereum blockchain, operations on MDEX are user-friendly, efficient, and very simple thanks to the link between Huobi Eco-Chain and MDEX. 

In summary, MDEX has differentiated itself from the market with a unique “dual mining mechanism” where it implements both transaction mining and liquidity mining as well as the “repurchase and burn” plus “repurchase rewards” mechanism. This has contributed to its tremendous success in such a short time.  

MDX Tokenomics

MDEX is powered by MDX token with a total supply of 1 billion. A block is produced after every 3 seconds based on the HECO chain with block rewards of 80 MDX per block. The halving time happens after every six months. 

MDX Token Supply

  • 80% – Liquidity and transaction mining on Heco 
  • 10%- Team Rewards for operations and development etc. It will be unlocked in 24 months after being launched by smart contracts 
  • 7%- Used as early investors’ share to provide more sufficient funds and resources 
  • 3%- Used for market promotion and brand building. Both unlocked in twelve months after going online. 

The mining reward for each block on Heco is 80 MDX, where liquidity mining accounts for 50%, transaction mining accounts for 50%. The rewards are halved every six months. 

MDX Use Cases

In addition to representing the rights of holders, MDX has some practical application value. Some of its use cases include: 

Governance

MDEX is a community-led decentralized project meaning that major decisions affecting the project are made by the community. MDX holders participate in community governance through voting to determine transaction fee ratios, review other essential rules and determine the decision to achieve via repurchase and destruction.  

Standard Fundraising Tokens

MDX can also be used as a standard fundraising token used by HT-IMO, a decentralized fundraising protocol based on the MDEX platform. This use case is very similar to using ETH in ICOs on the Ethereum platform. 

Fee

MDEX charges a 0.3% transaction fee where 66% of the daily fee income is split between two parts. 30% is used to repurchase MDX and burn to increase deflation, while the remaining 70% is used to buy HT from the secondary market and reward users who pledge MDX. The repurchasing and burning of MDX and buying HT to airdrop to MDX pledgers are conducted daily transparently. 

Security

MDEX is entirely secure, and it’s well committed to developing the largest DeFi platform integrating DEX, IMO, and DAO on the Ethereum and HECO chains. In addition to leveraging high-end security features, the DEX is audited by FAIRYPROOF, CERTIK, and SLOW MIST- the leading blockchain security audit firms. 

MDEX vs. Uniswap vs. SushiSwap

MDEX, Uniswap, and SushiSwap are all top-ranking decentralized exchanges that allow crypto traders to seamlessly swap tokens with one another without custodianship, order books, or through a third party or an intermediary oversight of any kind. Uniswap is a decentralized Ethereum-based liquidity protocol that connects people via smart contracts enabling them to trade Ethereum ERC-20 tokens and create liquidity pools for any ERC-20 assets and earn fees. SushiSwap is essentially a fork (clone) of Uniswap and is quite similar except for the tokenomics, liquidity providers’ rewards, and UI experience.     

MDEX is different from SushiSwap and Uniswap. While MDEX inherits Uniswap’s automatic market-making (AMM) model and liquidity mining mechanism, it makes substantial improvements and innovations on the mining mechanism and user incentives. MDEX features a dual mining mechanism, i.e., transaction mining and liquidity pool mining, reducing transaction fees to zero, even to negative fees. Also, unlike Uniswap and SushiSwap, MDEX is built on both the Ethereum and Heco chain, which boasts a transaction speed of about 500 TPS translating to about 3 seconds per transaction on the MDEX platform. 

Unlike Uniswap and SushiSwap, MDEX employs a “repurchase and destruction” design to create a deflationary effect for MDX and encourage users to provide liquidity for MDX. In summary, MDEX offers several advantages over Uniswap and SushiSwap, including meager transaction fees, fast transaction speeds, dual mining mechanisms, ease of switching pools, and a large number of users and ecological reserves.  

Closing Words

MDEX is a truly innovative DEFI project that combines the benefits of lower transaction fees and quick transaction time on HECO and access to Ethereuem’s extensive ecosystem into a single platform. The project is built on the rapidly developing Huobi Eco Chain and has witnessed explosive growth to become the top-ranking DEX on the chain. Currently, the project only offers transaction mining and liquidity mining. Still, it’s expected to launch other DeFi services, including lending, insurance, options/futures contracts, and other decentralized derivatives transactions in the coming days. Through its unique approach to DeFi, it’s not difficult to see why the project has trounced both Uniswap and SushiSwap to be the top-ranking DEX platform in just under a month since its launch. MDEX is truly one to watch since it has extensive potential and will transform the DeFi sector and propel the HECO chain to greater heights.  

Disclosure: This is a sponsored post. Readers are encouraged to conduct further research before taking any action. Crypto Adventure does not endorse any crypto projects cryptocurrencies listed, mentioned, or linked to on our site.

Adam is an outgoing young lad who likes adventures and discovering new things. Despite his boring life, he loves writing about cryptocurrencies and exploring what blockchain technology can do for the coming digital world where all adventures will be virtual.