MDEX CTO SKY talks about the value capture of dual-chain deployment

On April 13, SKY, CTO of MDEX, the largest application of Heco, was a guest on the Rhythm AMA. From Heco to BSC, MDEX has taken the top spot in DEX trading volume. What exactly makes MDEX attract so much capital?

SKY shared content on "The Way to Capture Value through Dual-Chain Deployment" and gave users a detailed introduction to the current development status and future plans of MDEX. Finally, he answered some user questions in the community.

Host: Could you please give us a detailed introduction to what kind of project MDEX is?

SKY: MDEX supports the decentralized cross-chain trading protocol of BSC, HECO and ETH, and ranks first in the CoinMarketCap and CoinGecko DEX rankings. It aims to integrate the advantages of multiple chains and create a high-performance composite DEX ecosystem. It maximizes the feedback to participants with the "double mining incentives" of liquidity mining and transaction mining, and realizes a self-driven value capture ecological closed loop through the fee repurchase and destruction mechanism. MDEX is now available on Huobi Ecological Chain Heco and Binance Smart Chain BSC. Users can use MDEX Bridge to realize cross-chain interoperability of assets between Huobi Ecological Chain Heco, Ethereum and Binance Smart Chain BSC.

MDEX is committed to building a DeFi platform that integrates DEX, IMO, and DAO, providing one-stop liquidity services for more high-quality assets, and providing users with a more secure, reliable, asset-diverse, and cost-effective trading experience. For cryptocurrency trading, choose MDEX for faster, better, and cheaper transactions. MDEX is the core hub for value exchange in the Heco ecosystem and an important attempt to connect the CeFi and DeFi markets. MDEX has recently deployed BSC and will usher in greater ecological integration and growth.

Moderator: According to CoinGecko data, MDEX is currently the decentralized trading platform with the largest trading volume. How did MDEX achieve such results in less than four months?

SKY: From Huobi Ecological Chain Heco to BSC, MDEX has gained two advantages: on the one hand, it has expanded the scope of services, which is conducive to making the "cake" bigger; on the other hand, with the development opportunities of DeFi, it will open the channel from technology upgrade, market upgrade to ecological upgrade. At 10:00 on April 10, MDEX was launched on Binance Smart Chain (BSC) for less than 2 days, and the total locked value (TVL) has reached 2.765 billion US dollars. The sum of the TVL of Huobi Ecological Chain Heco and BSC has reached 4.975 billion US dollars. This shows that MDEX has a good user experience and a high wealth effect.

This is inseparable from our core advantages, just like our slogan says: a full-ecological currency exchange, fast, good and economical.

More: The trading pairs provided can meet the basic trading needs of users, and more valuable and consensus-based currencies will be connected in the future.

Fast: Transactions can be confirmed in about 3 seconds.

Good: The projects launched online have all undergone relatively strict screening, taking into account both decentralized governance and efficiency.

Save: The transaction fee is as low as 0.1 cents (note that it is cents, not dollars), and the transaction mining itself eliminates the fee, with zero handling fees. The increase in transaction depth also further reduces slippage. Currently, many transactions can be done with a slippage of less than 0.1%, which is a trading experience that centralized exchanges often cannot achieve.

Host: The early development of MDEX is inseparable from the support of Huobi's ecological chain Heco, so why is MDEX now deployed on Heco's competitor Binance Smart Chain BSC?

SKY: Heco and BSC should face different user groups, and MDEX is positioned to be a multi-chain DEX, not just a DEX on Heco. MDEX is launched on Binance Smart Chain BSC, officially entering the multi-chain era. This is a milestone event for the entire DEX track.

There is a saying in the cryptocurrency circle, "The Internet is the information highway, and the blockchain is the value highway." As we all know, in the blockchain world, each public chain is an economy of varying sizes, and its on-chain assets and DApps cannot interact smoothly with each other. In other words, only after the cross-chain is completed can the value be transferred at high speed. MDEX's multi-chain deployment and creation of a full-ecological transaction protocol are the due meaning of blockchain development. In the DeFi field, DEX is an important infrastructure in the DeFi ecosystem of the public chain. Today, most DEXs survive around a chain, each occupying a hilltop, and their development is increasingly showing limitations.

There are also several reasons:

First, the total locked-in amount of MDEX has reached 2.3 billion US dollars, and the funds on the Huobi ecological chain Heco are about 8 billion US dollars. The TVL of MDEX has accounted for more than a quarter on heco, and the ecosystem needs to be further expanded;

Second, MDEX aims to build a multi-chain, high-performance composite ecological DEX, starting with Heco and launching BSC. It will also layout public chains such as ETH, OKEXChain, and DOT.

Third, MDEX itself has the advantages of low slippage, transaction mining fee subsidies, basically 0 fees, and a rich variety of assets.

Therefore, it is natural and logical to cross the chain to Binance Smart Chain BSC.

Moderator: The largest DEX on BSC is PancakeSwap. How does MDEX compete with it? What are the advantages of MDEX?

SKY: The launch of Binance Smart Chain BSC on MDEX will bring three major benefits: first, the number of users will increase, and the transaction volume will also increase significantly; second, MDEX's multi-chain deployment is more convenient for both users and projects, which is conducive to increasing the stickiness of the project party and cultivating user loyalty; third, the wealth opportunities on MDEX will continue to increase, and the value of MDX will be further recognized by the market.

In fact, many people now have a misunderstanding that MDEX will inevitably compete with Pancake for traffic if it is listed on BSC. I do not agree with this statement. Judging from the current data, this is indeed not the case. The current TVL of MDEX is 2.7 billion US dollars, and Cake has not been affected. Therefore, the entire ecosystem still has a lot of room for development.

It is normal for an ecosystem to have multiple DEXs. For example, in the Ethereum ecosystem DEX field, there are Uniswap, Sushiswap, 1inch, Curve and other DEXs, each with its own characteristics and coordinated development. BSC has Pancakeswap and MDEX. Our relationship is both cooperative and competitive, and we develop the ecosystem in a coordinated manner. In addition to the "more, faster, better and cheaper" mentioned above, MDEX also has the advantage of coordinating the traffic resources of the Huobi ecosystem and the traffic of the Binance ecosystem.

Moderator: MDEX was successfully deployed on BSC. In the first 12 hours, the transaction volume was close to 2 billion US dollars, and the total locked output also exceeded 2 billion US dollars. How did MDEX achieve such results? Is the market overheated at present?

SKY: Excellent product design and the profit effect of early mining participation have prompted traffic to concentrate on MDEX. However, short-term highs are not our goal. Based on past experience with Huobi's ecological chain Heco, 2 billion US dollars is a normal phenomenon, and it cannot be regarded as an overheated market. There is no hot or cold market, and there is no winter for products. As long as we consider the users and there is a wealth effect, people will come. As more people gather, the market will look hotter.

Host: After MDEX is deployed on BSC, it will also start liquidity mining and transaction mining at the same time. Can you tell us about the mining rate of return?

SKY: The single-coin staking mining rate ranges from 30-100%, the annualized rate of return of LP liquidity mining for stablecoin trading pairs is above 50%, and other LP mining rates are basically above 300%. Trading mining is currently relatively high, ranging from 150% to 6000%.

Moderator: Many users are concerned about the 45-day advance halving. Will this action have an impact on the price of MDX? Will the investor and team share unlocking also be advanced?

SKY: The shares of investors and teams will not be unlocked in advance, which is equivalent to diluting the shares of investors and teams.

I will also tell you about the MDEX economic model here:

The total supply of MDEX's platform token MDX is about 1 billion, of which 10% is used as a team reward for team operations, technology research and development, etc., and is unlocked by smart contracts in 24 months after one month of launch. 7% is used as an early investor share to provide more sufficient and favorable funds and resources for the development of MDEX; 3% is used for marketing and brand building; all are unlocked in 12 months after launch. The remaining 49% and 31% are used for liquidity mining and transaction mining on HECO and BSC respectively.

49% HECO liquidity and transaction mining

31% BSC liquidity and transaction mining

10% team reward (unlocked two years after 1 month of launch)

7% Early Investors (unlocked in twelve months after launch)

3% Market operation (unlocked in twelve months after launch)

Host: MDEX has completed the deployment of BSC. What other plans do you have for the future?

SKY: In Q2, MDEX will gradually realize the following four functions:

1. Multi-chain deployment

Gradually support public chains such as ETH (second-layer network), BSC, OKExChain, DOT, NEAR, etc., realize asset interoperability, and create a full-eco transaction protocol.

2. Cross-chain assets

Build a cross-chain protocol to enable users to switch assets with one click.

3. Orderbook

Providing more convenient and richer order placement strategies, users can enjoy a CEX-like trading experience.

4. IMO

Provide transparent, open and customizable financing services to project parties.