What is MDEX (MDX)? Everything you need to know about MDX Token – MDEX is an AMM-based multi-chain DEX (decentralized exchange). Traders in cryptocurrencies conduct business with one another on a DEX’s peer-to-peer marketplace, with the transaction’s settlement taking place on the blockchain.
The MDEX platform is one such DEX that uses Binance Smart Chain (BSC), Heco chain, and Ethereum in its deployment of various blockchains.
Notably, AMM is used on the platform. This is a set of protocols that enables groups of users to act as market makers, contributing liquidity to a pool and earning fees on transactions executed between traders.
Through its liquidity services, MDEX seeks to give customers a safe, varied, and reasonably priced way to trade digital assets.
MDEX (MDX) History
On January 19, 2021, the MDEX platform became public. The platform’s transaction and liquidity mining features were made available on the same day.
After some time, on September 2, 2021, MDEX finally initiated the governance function of the DAO. In addition, the protocol deployment on the Ethereum network took place on October 8, 2021.
The maximum number of MDX tokens that will be produced is one billion. The number of MDX tokens available each day dropped from 4.6 million to 2.3 million after the first MDX halving took place on June 5, 2021. It is proposed that the halving process be used to keep token scarcity and price stability.
What is MDEX?
MDEX is the most popular decentralized exchange (DEX) system built on Huobi Eco-chain (HECO), Binance Smart Chain, and Ethereum. MDEX is devoted to being the premier platform for eco-token transactions and the largest DeFi ecosystem that integrates DEX, IMO, and DAO.
It also provides a dual/mixed mining process consisting of a guaranteed liquidity procedure and secure user transactions. In addition, MDEX seeks to encourage cross-chain compatibility to develop a compound DEX ecosystem with high performance.
Since the debut of Binance Smart Chain, MDEX’s performance on-chain has been phenomenal. By 24h volume, MDEX now ranks first among all Binance Smart Chain DEX.
What is MDX Token?
MDX is the governance token of MDEX, which contributes to the success of the blockchains on which its project is founded. The token can be mined and exchanged with a total quantity of 1 billion. Based on the HECO chain, a block arises every 3 seconds with block rewards of 80 MDX. The reduction occurs every six months.
How does MDEX work?
MDEX generates revenue by charging its user’s transaction fees. The network also rewards users that mine their own MDX tokens. These coins are used as gas or burning fees for certain trading platform transactions.
MDEX platform has emerged as the best platform on the ETH blockchain, surpassing SushiSwap (SUSHI) and Uniswap (UNI). The following are some of its many excellent features:
High Transaction Speed
The MDEX has a faster transaction speed than Uniswap. As the MDEX platform is built on the Heco chain, a transaction can be confirmed within three seconds. In contrast to Uniswap, which has a delay of around one minute, MDEX has no delays, which are the primary cause of Ethereum Mainnet congestion.
Transaction Fees are extremely low
On Uniswap, for instance, a transaction for 1000 USDT incurs a fee of 0.3% ($3.0). However, identical transaction fees on the MDEX platform can be recovered back by mining, although at a rate of 0.3%. In addition, due to the subsidized transaction fee for members with more than $100 million worth of tokens in MDEX, the transaction fee is equal to nothing.
Users can Switch Pools
The flexibility of the MDEX pooling system allows users to migrate from one pool to another. Due to the increased gas fee rate, this may be more expensive on other DEX platforms.
Is MDEX a good investment?
The platform is quite young compared to other DEXs such as Uniswap, SushiSwap, and PancakeSwap. Its initial spectacular rise in terms of trade volumes, its spread to the BSC networks, and its ongoing evolution into a multi-chain ecosystem with DEX, DAO, and IDO/IMO capabilities are unquestionably clear evidence of the project’s burgeoning potential.
MDEX is combining the capabilities of Ethereum, Binance Smart Chain, and Heco Chain to enhance the user experience. The exchange will soon evolve into a broad asset universe spanning multiple chains. In addition, it is anticipated that the exchange would incorporate more DeFi services, including option contracts, financing, futures contracts, insurance, and other decentralized finance services.
With enormous orders, Uniswap’s overall trading volume has already topped $5 billion, whereas MDEX’s volume is just around $1.7 billion. This will have a substantial effect on slippage during transactions.
The exchange is currently enhancing the reputation of the HECO chain, which may soon encourage the development of further projects on the chain.
When making financial decisions, conducting your own research and exercising due diligence is essential.
Since 2021, the expansion of the bull cycle and good performance in the DeFi sector have led to the rapid growth of DEXs. In addition, the rising gas fees on Ethereum have triggered a so-called “spillover effect” in the market, accelerating the growth of DEXs. In the long run, MDEX’s low transaction costs, low slippage, diverse trading pairings, and superior transaction quality will be the defining competitive advantages that “knock down” competing DEXs.
Hopefully, this article will assist readers in learning more about the MDX token.