In December 2020 the launch of the Huobi ECO Chain mainnet (HECO) took place, and a month later — the decentralized exchange MDEX on this blockchain.
According to DeFi Llama, HECO currently hosts 20 DeFi protocols with a total value locked (TVL) of $1.2 billion. Meanwhile, the dominance of MDEX reaches 70% ($872 million).
We highlight the features of the decentralized exchange, the platform for Initial MDEX Offering, and the MDX governance token.
MDEX Features
MDEX operates on the EVM-compatible HECO blockchain: developers can use the libraries web3j, web3js to create dapps and DeFi protocols on this network.
In April 2021, MDEX added support for Binance Smart Chain (BSC) and launched a cross-chain bridge between HECO, BSC and Ethereum. The exchange’s smart contracts were audited by Certik, SlowMist and Fairyproof.
The crypto exchange provides users with several services:
- Swap — token swaps on HECO and BSC using MetaMask, WalletConnect, and Coinbase Wallet;
- Pool — creating MDEX liquidity pools;
- Liquidity — adding liquidity to existing pools. Liquidity providers earn rewards in MDX tokens;
- Trading — monitoring trading-pair yields on MDEX. Selecting a pair takes the user to the Swap section;
- Boardroom — staking MDX and other project tokens;
- Bridge — token transfers between HECO, BSC and Ethereum;
- DAO — voting with MDX tokens on community proposals for MDEX.
As of this article’s publication, the MDEX team is beta-testing the Charts module. It will allow users to track trading volumes, liquidity, and recent transactions on the platform.
The developers plan to implement a liquidity aggregator and Range Limit Orders. In addition, the project team will add support for crypto derivatives, NFTs, and blockchains OKExChain, Polkadot and NEAR.
Platform Token
MDX is the token of MDEX with a total supply of 1 billion, performing the following functions:
- Governance: MDX holders vote on proposals for the exchange’s development;
- Fundraising: projects raise funds in MDX tokens.
- Reward payouts: the exchange distributes MDX to users for providing liquidity and making trades on the platform.
The platform distributes rewards in the following proportions:
- 49% and 31% — to MDEX users for providing liquidity on HECO and BSC respectively;
- 13% — to the MDEX team in the two years after the exchange launch;
- 7% — to early MDEX investors one year after the launch of the exchange.
MDX is currently traded on 31 exchanges, including Huobi, Binance, Gate.io and CoinEx.
Initial MDEX Offering
In May 2021, MDEX introduced a platform for fundraising on the decentralized exchange — Initial MDEX Offering (IMO).
The first IMO on MDEX took place on May 25, 2021. The yield-aggregator CoinWind (COW) sold 3 million COW worth $1.5 million in 10 seconds.
To participate in the token sale, users stake MDX. The minimum stake size is determined by the IMO organizers.
The exchange team also created a fund to support new projects — MDEX Ecology Fund. In the near future, the fund will be moved under the governance of a decentralized autonomous organization.
MDEX Ecology Fund has already invested in the O3 wallet, the crowdfunding platform Westarter, the lending protocol Open Leverage, and yield aggregators Booster, Converter and CoinWind.
Conclusions
MDEX — a young decentralized exchange that ranks first among DeFi projects in the HECO ecosystem and sits in the Top 10 by TVL on Binance Smart Chain. The MDX token is traded on leading centralized exchanges — Binance and Huobi.
The exchange provides services for token swaps, liquidity provision, governance, and cross-chain transactions. In the near future, the MDEX team will add support for new blockchains and NFTs to broaden the platform’s audience.
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