DexMex Review: P2P Leverage Trading Now on Decentralized Exchanges

Project Reviews / 25.03.2021

The increase in the adoption of cryptocurrencies has seen a rise in the number of cryptocurrency exchanges. Crypto exchanges allow traders to buy and sell cryptos at a fee seamlessly. These exchanges take different forms and can either be a market maker that accepts bid-ask spreads, accepting various forms of payment, including credit card payments, wire transfers, or even support cryptocurrency withdrawals.

Crypto exchanges are categorized into two broad categories: centralized and decentralized exchanges. Decentralized exchange (DEX) operates in line with the central premise behind cryptocurrencies and blockchain technology, i.e., decentralization. DEX allows individuals to be in complete control of their funds and trade directly without third parties’ watchful eyes. 

There has been substantial growth in the number of DEX platforms in recent years, rising from 0.11% to 6%, thanks to increased preference by crypto traders. However, CEX platforms hold several advantages over DEX. For instance, CEX allows traders to benefit from leverage trading or make futures- a feature unavailable on DEXs. 

However, DexMex changes this narrative by supporting peer-to-peer leverage trading allowing traders to go long or short on any ERC20 token listed on UniSwap. Here’s an in-depth review of this fantastic platform. 

What is DexMex?

DexMex is a decentralized exchange that offers progressive leveraged short/long trading opportunities on Uniswap pair’s peer-to-peer derivatives. As such, the platform allows traders to go short or long with leverage for any token trading on Uniswap. DexMex is based in Switzerland and was founded by pioneers in the DeFi space. 

How Does DexMex Work?

DexMex debuts an innovative concept in the world of decentralized exchanges by integrating peer-to-peer trading with leverage. Users are rewarded directly with the value of losing positions. In essence, the platform doesn’t require third parties’ services (liquidity providers) to reward the winning position. Instead, the winning positions are rewarded by the losing positions in a peer-to-peer, continuous manner. 

To achieve this, the platform sets a ratio between the short interest and the same token’s long interest. Then, leverage is updated every time a user withdraws his holdings or gains based on their positions. Everything works seamlessly on the Ethereum blockchain, with no need to borrow a token, either long or short. 

DexMex encompasses a pool for each ERC20 token listed on Uniswap. Each ERC20 pool is divided into two sub-pools: One that shows the long interest for the token represented by assets (in ether) deposited by users who anticipate that particular token to rise. The other pool is deposited by users who foresee their tokens going down. 

The platform then determines the leverage by calculating the ratio between the two pools. The ratio is calculated continuously when a user withdraws his assets from the pool. The continual predictive analysis of the token ensures that the winning users are continually rewarded by losing users. The prediction is made individually when the user decides to withdraw their funds from the pool. Besides, traders can enter the peer-to-peer system whenever they want without a predicative duration since the pool is continuous. The peer-to-peer concept is, therefore, based on a timeless prediction contract. 

Features of DexMex

Decentralization

DexMex’s main selling feature is decentralization. The platform is entirely self-regulated and allows individuals to trade any asset without restrictions or centralized power. Users are not subjected to various laws and external regulations. 

By being decentralized, DexMex allows any token listed on Uniswap to be longed or shorted without any centralized limitation. Besides, the platform enables its community to make decisions via decentralized voting. 

Privacy

DexMex allows its users to remain completely anonymous. The platform allows users to trade on DexMex without providing their personal details to create an account or verify their identity. Besides, users can trade directly with a MetaMask wallet. You only need to connect your wallet to DexMex to be able to trade. 

Accessibility

DexMex is highly accessible. There is no exterior restriction that hinders its accessibility. You only need an ERC20 token wallet (currently, MetaMask is the only supported wallet) to trade on DexMex. Additionally, the platform doesn’t place limits on deposits or withdrawals. DexMex works directly with the Ethereum network allowing trades to be accomplished in the minimum time possible. 

DexMex Trading Fees

DexMex charges a 0.8% entry fee when users take a short or long position. After the entry fee, the platform doesn’t charge any other additional fee, meaning that users can hold as long as they want after closing their winning/losing positions without paying additional penalties. 

Dexmex Token

Dexmex (DEXM) is the cryptocurrency that powers the DexMex platform. It’s an ERC 20 token from the Ethereum network and powers all the economy and revenue on the platform. 

Dexmex Tokenomics 

Ticker Symbol: DEXM 

Market Cap: Unknown 

Trading Volume: $3, 948, 760 

Supply

Circulating Supply– 37,500,000 DEXM representing 75% 

Marketing– 2,500,000 DEXM representing 5% 

Team/ Development/Listing-10, 000,000 DEXM representing 20%  

DEXM Use Cases

DEXM has several use cases, including: 

Governance– Since DexMex is decentralized, users have complete control over the protocol. DexMex holders can vote on essential aspects of the project, including fees or necessary upgrades. 

Staking– DexMex users can be able to stake DEXM and earn 0.5% commissions on all trades. The staking fees are paid directly in Ethereum. 

Buybacks and Burn

0.2% of the total fees charged on DexMex is used to buy back DexMex and burn it via a deflationary mechanism. This aims to create value for the token in the long run. 

Benefits of DexMex

  • Flexible- DexMex is 100% decentralized enabling traders to open a long or short position against any token listed on Uniswap. DexMex offers infinite flexibility allowing any token on Uniswap to be short or long. 
  • Peer to Peer Leverage Trading- DexMex doesn’t rely on liquidity providers to support leverage trading. Instead, the platform leverages a ratio formula where losing positions reward the winning positions directly. As such, the platform is overly transparent, with no central authority to oversee leverage trading as with centralized exchanges. 
  •  Liquidity Issues-DexMex doesn’t face any liquidity issue considering that the reward value of a user’s position is determined by a ratio between the shorts’ interests and the longs.  
  • Timeless positions- DexMex allows users to hold a short or long position as long as they prefer. Think of perpetual contracts on a centralized exchange. 
  • Low fees- DexMex charges one of the lowest trading fees in the crypto space. The platform charges 0.8% trading fees to enter a position. There are no hidden commissions or funding rates. 
  • Full Privacy- DexMex ensures users’ complete privacy is kept. Users can directly trade with a MetaMask wallet. There’s no need for creating an account or verifying your identity via the annoying KYC procedure.   

Wrapping Up

While most crypto traders would prefer to trade on DEX, their limited functionalities and features make them unattractive. DexMex offers crypto traders a chance to trade on DEX while still getting access to outstanding features, notably leverage trading. The platform allows traders to be short or long with leverage for any token trading on Uniswap. According to its roadmap, DexMex has already fully launched the platform. Indeed, DexMex is an innovative DEX that gives crypto traders an alternative over CEX, which operates against the entire decentralization concept synonymous with blockchain and cryptocurrencies. 

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.