Just when you thought developers and other crypto community members have their hands full on the current projects, a new one just popped up on your radar. This new decentralized application (dApp) is categorized under “Spot Trading” on the defistation website, and you would have just brushed it off as another copycat project. However, curiosity got the better of you, and you went into its website to find out new protocol is anything but typical. In fact, you are overwhelmed by the number of features this dApp has and that it also has three bridges.
What is this project that this writer is referring to? MDEX, a new decentralized project that is offering traders and investors unique opportunities for high yield, swapping, trading liquidity, and much more. This MDEX review article will take a look at what MDEX has to offer, its tokenomics, and why it is becoming so popular that it made it fifth place in the entire Binance Smart Chain ecosystem.
What is MDEX?
MDEX is a new decentralized trading protocol that was only launched in January 2021. It is an automated market-making (AMM) decentralized exchange protocol that operates on the concept of fund pools, sharing some similarities with standard DEXs, but differentiating itself from competitors by leveraging these various public blockchains for the super-low transaction fees in HECO and BSC and deep liquidity of the Ethereum ecosystem.
MDEX has ranked first in the DEX rankings by CoinMarketCap and CoinGecko, at one point even usurped Ethereum’s Uniswap and SushiSwap, Binance Smart Chain’s PancakeSwap, and the 1inch exchange in popularity, flippening Uniswap as the number 1 ranked DEX on CoinMarketCap as of March 2021.
MDEX innovatively combines the different advantages of various basic public chains and creates a well-rounded and composite DEX ecosystem with high performance. It uses a dual-chain model modeled on both the Ethereum network, the Huobi Ecological Chain (HECO), and the Binance Smart Chain (BSC). This “dual mining” mechanism of liquidity mining and transaction mining brings greater returns to the participants, and the transaction fee “repurchase and burn” mechanism realizes a closed and self-driven loop for value capture.
MDEX seeks to integrate DEX, IMO, and DAO concepts by providing one-stop liquidity services for more high-quality assets and providing users with a more secure, reliable, diverse, and cost-effective trading experience. To accomplish this, they’ve released six major features: Cross-chain, Swap (including transaction mining), Liquidity mining, Boardroom, IMO, and Fun Buyback.
The most interesting feature about MDEX is its cross-chain bridges. This is not really new, but what is interesting is that it has three bridges to BSC, Ethereum, and HECO, a new and rapidly developing ecosystem.
To transfer tokens from one blockchain to another, simply click where it says “Bridge Open the PC version wallet and select the HECO network first (same as the steps for the mobile version wallet). Your account needs to have the corresponding token and a certain amount of HT (as a gas fee).
Below is an example of how to transfer tokens from HECO to BSC.
To transfer tokens from one blockchain to another, simply click where it says “Bridge.” Then select the HECO.
Choose the token you want to transfer, click “Approve,” and confirm in your wallet.
Then input the number and address, click “Transferred,” and confirm in your wallet.
Lastly, select the cross-chain currency MDX, the receiving address (the receiving address of BSC), and the number of cross-chains. Click “approve,” then you will need to click “Next” again to confirm the transfer and wait for the cross-chain to complete.
After the cross-chain step is completed, switch to the BSC mainnet to check the MDX receipt. It is recommended to enter the corresponding MDX contract address on BSC in the wallet address.
MDEX’s Swap interface is similar to Uniswap’s, and just like the OG DEX, users need to connect their wallets and then can swap tokens. You will need to make sure you have sufficient BNB, ETH, or HT to pay for transaction fees. The protocol currently supports most token transactions on HECO and BSC.
Besides the deep, fast, diversified transactions, users can receive transaction fee subsidies during the transaction process. However, not all trading pairs can enjoy transaction fee subsidies. For the specific trading pair list, please click Transaction Mining to view.
Providing Liquidity & Liquidity Mining
Liquidity mining allows users to obtain MDX token rewards by staking LP after adding liquidity on HECO or BSC. Be warned; not all trading pair transactions can enjoy token rewards. For the specific trading pair list of liquid mining, please click Liquidity Mining to view.
To add liquidity, you will need to click click where it says “Pool” on the top of the website. Once there, pair two tokens that you would like to provide liquidity for. Then, click “Next” and then “Add Liquidity.” Once that is done, you will receive Liquidity Provider tokens or LP tokens that act as a representation of the liquidity that you provided.
Once you have provided liquidity and received your LP tokens, click where it says “Liquidity” on the top of the website. Once there, find the pair, and on the right side, click “Stake.”
Click ‘+’ to stake your LP, then click ‘confirm.’
Suppose you want to unstake the LP, click ‘unstake’ and confirm. Then remove your liquidity.
The Boardroom supports LP and single token staking to obtain MDX rewards. The rewards are purchased and distributed by the project party through the secondary market. In addition, the feature provides MDEX holders long-term ecological benefits and governance rights
For specific trading pairs that can participate, click on the Boardroom to view.
Initial Mdex Offering (IMO)
The Initial MDEX Offering or IMO is based on MDEX's decentralized initial offering swap mechanism, IMO V1. It is designed to achieve a basic public swap function to provide sufficient liquidity for the project and allow users to participate more fairly.
All users can participate in the public swap function and apply for swap shares within the specified time according to the asset swap rules and swap time established by the project party of this round of fundraising. After the swap, the tokens will be allocated according to the swap ratio. The funds remaining after deducting the swap quota will be returned to the original address. Users can use MDX or MDEX platform LP to participate in the swap.
To participate, users must first buy MDX, HT, and WBNB. Then they need to go to the pool page of the protocol’s V1 and provide liquidity. When the sale starts, go to the https://imo.mdex.com/#/ website and stake the LP tokens to receive the new corresponding token. When the sale is over, claim your IMO token and your LP that does not win the lottery.
The Fun Buback feature is a type of lottery where users can contribute some of their MDX into the pool in order to win rewards. You will need to click where it says “Burning black hole,” as shown above. Please note that this feature is also a token-burning mechanism. Meaning that once you deposit your MDX to participate, they will be used to give to the winner, while 90% of it will be burned.
The way it works is simple. After contributing MDX into the burning pool, the user will get a random number. If the number is consistent with the pre-designated winning number, the user will receive rewards. For example: if user “A” gets a random number of 123 after contributing MDX, which is exactly the same as the pre-designated “Jupiter Award” winning number, then the user is the “Jupiter Award” winner.
The rules are that users can contribute a minimum of 10 MDXs in a single time, but the number and frequency are not limited. User input will form a combustion pool, of which 90% of the MDX in the combustion pool will be destroyed, and the remaining 10% will be returned to the Jupiter Award. Each contribution will generate a random 3-digit number. Before starting the next round, the pre-designated winning number of the current round will be announced.
There are two kinds of rewards: 10% MDX from the burning pool (for “Jupiter Award”); 300,000 USDT (100,000 USDT for “Saturn Award” and 200,000 USDT for “Pluto Award”).
After contributing MDX into the burning pool, the winner’s random number should be consistent with the pre-designated Jupiter Award-winning number (3-digital) announced.
For example, if the pre-designated “Jupiter Award” winning number is 123, and you get a random number of 123 after contributing MDX, then you are the “Jupiter Award” winner. If your random number is 321 or 132, you are not the winner.
After contributing MDX into the burning pool, the last two digits of the winners’ random number should be consistent with the pre-designated Jupiter Award-winning number announced.
For example: if the last two digits of the pre-designated “Jupiter Award” winning number is 12,
and you get a random number of a12, then you are the ” Saturn Award ” winner. If your random number is 321, you are not the winner.
The winner’s random number should be different from the pre-designated “Jupiter Award” and “Saturn Award” winning numbers announced. Users who have not acquired the “Jupiter Award” and “Saturn Award” will receive the “Pluto Award.” Essentially, all users can win awards. It is only the specific rewards that are different.
Each round lasts for 24 hours. After the end of each round, the awards will be announced, and users can receive their rewards accordingly. The award announcement time is within one hour after the end of each round.
If by some chance, there are more than one “Jupiter Award” winners, all winners can share the 10% MDX of the burning pool according to the proportion of MDX contributed. If there are no “Jupiter Award” winners for this round, the reward, i.e., 10% MDX of the burning pool, will be reserved for the next round.
MDEX’s tokenomics follows a “repurchase and burn” model, which decreases the circulating supply of the MDX token over time, driving up its value. This model keeps the value of MDX sustainable over the long run. Its tokenomics are also further supported by the “repurchase and reward” model, which further incentivizes MDX holders to keep their tokens.
As part of its tokenomics, MDEX can also experience a halving event. On June 5, 2021, the protocol completed its first halving, reducing the block rewards from 80 MDX to 40 MDX, reducing the daily output on the dual chains HECO and BSC from 4.6 million to 2.3 million.
That being said, similar to PancakeSwap, there doesn’t seem to be a max supply MDX. According to CoinMarketCap, 468,452,817.70 tokens in circulation.
On top of yield rewards, MDX tokens can also be used to participate in the governance mechanism of one of the fastest-growing DEXs in the market. Holders can propose and vote on the listing of a token on the MDEX market or collateralization of any other asset.
On June 4, 2021, the team posted its roadmap for the project. Some exciting things that they are coming up are:
1) Implement the M-USD stable coin for full release the unlimited liquidity. Users will be able to use it for over-staking, LP staking as well as Boardroom MDX staking, and provide various application scenarios and liquidity rewards for MUSD. In doing these, it is hoped that MDEX will allow users to obtain lucrative income while significantly improving the efficiency of capital utilization.
2) Implement the M-MEX plan to create a one-stop derivatives solution such as leveraged transactions, option transaction, and market oracles, etc.
3) In order to create a more prosperous ecosystem, the team will prioritize a series of support programs such as IMO, MDEX Foundation, and M-Accelerator and provide a full range of supports for quality and innovative developers and projects around the world. The support includes but is not limited to funding, technology, and ecological collaboration, etc. They will carefully review each application and give feedback within 24H.
4) MDEX will return all rights to the community through DAO. To do this, 21 candidates will be elected to the Boardroom member through MDX voting. Boardroom candidates have the right to initiate proposals and enjoy high-income dividends, while users can participate in governance and get corresponding rewards through MDX voting.
6) To further encourage MDX holders who are optimistic about the development of MDEX in the long term, the team will start a long-term staking plan and invest more funds and equity as rewards.
7) The team has plans to return all product revenues to MDX holders through rewards, or the repurchase and burn mechanism, etc.
DMEX has only been around for six months at the time of writing this article and, thus far, has managed to capture a good portion of the TVL on Binance Smart Chain and HECO. However, that doesn’t mean that it does not have competition. Many other projects offer similar features, rendering MDEX as not anything unique.
On BSC, you have Ellipsis and Nerve Finance, two Stablecoin AMM DEXs, Autofarm, beefy.finance, O3 Swap, Dopple Finance, and more.
On the Huobi blockchain, you also have BXH, DogeSwap, Depth, Pippi Shrimp Swap, and more. Although MDEX is at the top of the HECO ecosystem and by far has the most TVL, the rapidly growing ecosystem could very well entice users to move their funds to other projects that could be offering higher yields and/or at least have a user-friendly interface.
Tutorial & Additional Information Videos
Below are a few videos that offer additional information about the project:
Below are a few tutorial videos:
MDEX Review – Conclusion
In conclusion, MDEX seems to be a power DEX that has seen rapid growth in its ecosystem. Like PancakeSwap, it has a repurchase & burn token mechanism in order to control price inflation while still reward users with high yield.
The project is also creating awareness for the HECO ecosystem, potentially capturing the attention of users to see what this new rising public blockchain has to offer, and thus far, MDEX is at the forefront of this interaction between Ethereum and BSC users. No other project on BSC has a bridge with HECO, at least not yet.
However, when you first go into their webpage, you can’t help but feel overwhelmed at the amount of information and services it provides. In this writer’s opinion, the homepage seems to be too much and not user-friendly. This can actually be counter-intuitive as the interface can discourage new users from participating.
To make matters worse, their docs section can also overwhelm users. Although it does provide many helpful articles on how to provide liquidity, use their cross-chain bridges, or even how to set up your wallet, they do not have a section that provides in detail about their tokenomics, which is a very important piece of information for any investor and trader.
In addition, their Medium account has been suffering from technical issues, and although they have set up another account, this issue prevents users from reading any previous articles that they wrote, including their introductory article about the project. This is not good for people who are trying to do their research about the project and can discourage them from even attempting to deposit their funds, despite the huge amount of TVL the project has in its smart contracts.
Also, the project’s only unique feature seems to be its bridge to HECO. Other than that, it provides the same features and services that other DEXs provide, not making it such an exciting project that could disrupt this growing sector.
Despite this, MDEX does seem poise to make become a major player. Its token has been listed in 23 exchanges, including Huobi and Binance. It has also been partnering up with new projects for its IMO feature such as Coinwind, Filda, O3, Open Leverage, etc. And according to its roadmap, it has no plans to stop further development and launching of new services for its users. Should the team and community continue to innovate further, there is little doubt that MDEX will not have a future in the long term.
Ease of Use
- Has three bridges, allowing users on HECO to directly interact with BSC and Ethereum
- Has more than $3.3 billion in TVL, giving it deep liquidity and popularity.
- Has efficient tokenomics with a repurchase and burn mechanism to maintain its value.
- Currently offers high yields.
- Offers many interesting and fun features and services to incentivize users to participate.
- MDEX’s interface looks very clunky and overwhelming. New users may find it intimidating.
- Their Docs and Help section have a lot of information but is somewhat disorganized.
- Does not have a “Tokenomics” section in their Docs.
- A relatively new project with no assurance it will last; high risk.
- broken link for Medium articles, unable to read an introductory article about MDEX.