Decentralized Finance in recent times has experienced exponential growth characterized by the emergence of several chains or projects like MDEX. This has led to congestion in the Ethereum blockchain leading to an increase in the price of ETH (Ether) and gas fees.
As a result, other chains have started to spring up in the crypto space. A good example of such a chain is the Huobi Eco Chain launched by Huobi, a popular Crypto Exchange in China.
‘Heco’ is a decentralized public chain where Ethereum devs can design and launch Dapps. The platform functions similarly to Ethereum, which enables it to be compatible with smart contracts. It is more cost-efficient and faster than Ethereum. It makes use of the Huobi token as its gas fees.
MDEX is a platform integrated into the Heco chain that is dominating the DEX sector. It started mining activity on the 19th of January 2021.
With barely two months of its existence, MDEX recorded two billion Dollars as the total pledged amount of its liquidity pool and over 5.05 Billion Dollars in transaction volume for every 24-hour.
This exceeds the amount of Uniswap and SushiSwap. The platform is also called DeFi Golden Shovel and currently has a Total Value Locked (TVL) of USD 2.09 billion.
Keep reading this MDEX review to learn everything that is contributing to the success of this decentralized protocol.
What is MDEX?
MDEX, an acronym to Mandala Exchange, is a leading decentralized exchange protocol built on the Huobi chain. A trading platform using the automated market maker technology for fund pools.
It is part of MDEX plan to build a creative DEX, DAO, and IMO/ICO on ETH and Heco. This is to provide a configuration and asset selection that is more reliable and safe for users.
It uses a mixed or dual mechanism in its mining operations which are, transaction and liquidity mechanisms. Similar to other Cryptocurrencies, MDEX tokens (MDX) can be used for various purposes, including; serving as a medium for trading, voting, repurchase, and fundraising, among others.
Features of MDEX
The following unique features can be found in an MDEX platform;
- It operates on a dualized mining innovation used to ensure a secured transaction and guaranteed liquidity process. The concept of depositing all funds enhances trading activities leading to an increase in the Automated market maker liquidity process. As such, there is flexibility in the conversion of MDEX token coins to either other coins or cash.
- Its platform can also be used for fundraising through the ‘coin wind or IMO platform’ launched on May 25th.
- It has a unique feature called the “Innovation Zone.” This is a trading zone dedicated to users who wish to trade innovative tokens that are assumed to be more volatile with more risk compared to others.
- The protocol is fast and cheap compared to Ethereum due to its integration of the “Binance smart “ chain or compatibility with smart contractors. On March 16th, MDEX upgraded its platform to a 2.0 version with improved platform features. Thus, proving users with a faster, more secured, and user-friendly platform in a liquid trading system at low or zero cost.
- It is a DAO system with transparent rules controlled by its members.
- As an Automatic Market Maker, MDEX assists organizations in building and launching applications at high speed by providing a suitable platform that supports this process.
- The concept of token economic management is vital in sustaining liquidity mining. MDEX offers a high reward incentive, unlike some DEX tokens, through the mechanisms known as ‘repurchase & burn’ and repurchase & reward. These mechanisms were designed to boost the MDX token market value.
- After MDEX mining was launched, 66% of the gain for each day’s transaction fees are shared into two. 70% is used to purchase Huobi token (HT), and the remaining 30% returned to MDX is used for burning. Some portion of the MDX token pooled out of the secondary market is used to compensate members that staked MDX.
- Normally, the major challenge in the exchange market is liquidity, whether DEX or CEX. The easy mining and liquidity methods in MDEX have been proven to be liable in assisting exchanges in obtaining liquidity.
It adopts both the advantages of increasing the Ethereum ecosystem and low Heco chain transaction fees enabling users to enjoy a dual mining method as stated above.
Development History of MDEX
The Mandala Exchange project was launched on the net on the 6th of January and was made open for liquidity and trading mining on the 19th of the same month. It attracted many users with a daily liquidity value of $275 million, with a $521 million transaction volume. Exactly 18 days following its launch, the daily transaction volume increased to over a billion US dollars, as was recorded on the 24th of January.
On the Ist of February, which makes it 26 days of existence, MDEX recorded another success with a liquidity increase exceeding one billion.
A board of Directors called ‘Boardroom mechanism’ was established on the 3rd of February following the launching of an ecological fund that worths USD 15million in MDEX.
Based on records, MDEX transaction fees were recorded 3rd to Ethereum and Bitcoin only after 7days of its launch. It later increased to over $340million within its 2 months of operation.
On the 19th of February, the MDEX 24-hour transaction volume increased to over USD 2 billion. However, MDEX recorded another remarkable success on the 25th day of February with a day-transaction value of USD 5billion.
This represents 53.4% of DEX trading volume globally. With this success, MDEX was given the Ist position in the global DEX CoinMarketCap rankings.
Towards the second week of March, MDEX had recorded 2,703 as trading pairs with a transaction depth of about 60,000 ETH (approximately USD 78 million). This ensures guaranteed stability of its trading system related to market changes.
The total transaction volume of $100 billion was recorded on the 10th. On the 12th, the cumulative amount of burnt and repurchased MDEX token was over 10million dollars. MDEX launched a new version known as ‘version 2.0’ on the 16th.
MDEX, on the 18th day of March, set a new record with a daily transaction value exceeding $2.2 billion with TotalValueLocked TVL of over USD 2.3billion.
A total of 143Million MDX were distributed via transaction mining grants and liquidity rewards amounting to $577million.
MDEX was launched on a platform known as the Binance Smart Chain (BSC). This was done on the 8th of April to support the mining of single currency, assets cross-chain, trading, and liquidity mining. MDEX TVL exceeded USD 1.5 million within 2 hours of launching on BSC.
The total volume of the transaction exceeded $ 268million, while the current value of TVL on BSC and Heco now worth over 5 billion.
The Economy and Value of MDEX Token (Mdx)
The economic value of the Mandala Exchange Token (MDX) can be influenced by its flexibility, supply, and usage. As one of the crypto tokens function on the Ethereum blockchain, the market value is bound to experience periodical rising and falling.
More information in addition to the mores outlined below can be found on the MDEX official website.
- MDEX income revenue is 0.3% charge of the total volume transacted. It is deducted from the transaction fees.
- The 0.3% fee charged on the exchange is returned to the system to refuel it, buying back MDX to be burned. Notably, 14% of this fee is used as a reward for users mining the token, 0.06% to MDX destroy and purchase, and 0.1% to support the ecological projects. From records, over $22million repurchases have been made, and the rewards earned have exceeded $35 million.
- Members who’re mining the token earn rewards. This is targeted to attract more members to join the platform.
- MDEX trading tokens trades on one market to 1 exchange, with Uniswap as being the most active.
- The highest MDEX token volume capacity that can ever be issued will not exceed 400 million tokens.
The MDX platform can also be used for the following purpose;
- The availability of this special zone, ‘innovation Zone,’ gives the users leverage of trading on new tokens with promising rewards without restrictions.
- It can serve as the standard token for fundraising based on the popular decentralized MDEX fundraising protocol called HT-IMO (Initial Mdex Offering). Users who wish to participate can join the group(IMO) using their Heco and BSC trust wallets to access the website.
- Repurchase and burn: It charges 0.3% of the transaction amount as a transaction fee.
- Used for Voting: MDEX token holders can decide to start up a token listing through voting or pledging.
Advantages of MDEX
MDEX platform is associated with unique benefits. It has emerged as the best platform over SushiSwap and Uniswap in the ETH blockchain. These unique advantages include;
- High Transaction Speed: The transaction speed of MDEX is higher than that of Uniswap. It is designed on the Heco chain, which can confirm a transaction within 3 seconds. Unlike Uniswap, which may stay up to one minute. This delay associated with Uniswap can be linked to congestion found on the Ethereum Mainnet.
- Transaction Fees are very low: If 1000USDT is traded on Uniswap, for instance, members are requested to pay a transaction fee of 0.3% ($3.0) and a gas fee of 30 USD to 50USD. But for similar transactions in the MDEX platform, the transaction fee though still 0.3%, can be earned back through mining. Also, due to the subsidized transaction fee for members with token above $100 million in MDEX, the transaction fee is equivalent to zero. Unlike in other DEX where the recent gas crises experienced on the ETH blockchain has led to increases transaction rate.
- Users can Switch Pools: There is flexibility in the pooling system of the MDEX platform. Members are allowed to migrate from one pool to another. This can be more costly in other DEX platforms because of the increased rate of gas fees.
MDEX Use Cases
Some of the use cases of MDEX include the following:
- Tokens for Standard Fundraising – Some decentralized protocols involved in fundraising uses MDX as a standard token for fundraising. One such protocol is HT-IMO, which operates on the Mdex platform.
- Governance – Mdex as a decentralized project is community-led. This means that it takes the Mdex community to resolve any major and outstanding issues concerning the Mdex project. This creates room for communal governance by the holders. It usually takes the majority votes of the holders to establish the fee ratios of transactions, get the decision for achievement through destruction and repurchase, as well as revise essential rules patterning to Mdex.
- Security – The security of Mdex is unquestionable. This is displayed through the top-notch features of the project that keep it outstanding. Also, undergone several security auditions by some strong blockchain audit firms such as CERTIK, SLOW MIST, and FAIRYPROOF, DEX has been confirmed to be completely secured. Its operation is geared towards creating a robust Defi platform. It also functions by inculcating IMO, DAO and DEX into the HECO and Ethereum blockchains.
- Fee – The transaction fee charge of Mdex is 0.3%. In the operation of Mdex, there’s a dual split of 66% of its daily income fee in the ratio of 7:3. The first part is used for compensating the users of the MDX token and for purchasing HT in the secondary market. The latter ratio of the split is deployed to raising deflation through the repurchase and burning of MDX.
How MDEX is Contributing to Huobi Eco Chain’s Growth
Heco Chain has Mdex as its leading Dapp that is a vital tool in the chain’s popularity. This’s all thanks to the MDEX recent success and rise, which invariably has given the project a special stance in the Huobi eco chain.
The role of MDEX in pushing the Heco chain forward in the highly competitive crypto market can never be underestimated. Thus, the system growth of Heco Chain and its increase in use cases are all through the MDEX demand of real transactions and high APY.
How Does MDEX Compare to Uniswap and SushiSwap?
In this MDEX review, we aim to compare these three leading decentralized exchanges in the crypto space to find out their similarities and differences.
- MDEX, SushiSwap, and Uniswap are all decentralized exchanges making waves in the industry. Each of these exchanges facilitates the swapping of tokens between traders without the need for a third party, intermediary, or order book.
- Uniswap is a DEX based on Ethereum. It enables users to trade ERC-20 tokens through smart contracts. Users also can a liquidity pool for an ERC-20 token and gain through the transaction fees.
- SushiSwap is popularly known as the “Clone” or “Fork” of Uniswap. It has many things in common with Uniswap. But it is different when it comes to UI experience, tokenomics, and LP rewards.
- MDEX is on another level from both Uniswap and Sushiswap. It has the automatic market maker that characterizes the Uniswap experience plus the liquidity mining operations. But it improved the process and the increased user incentives.
- For the mining, MDEX uses a “Dual mining” strategy, thereby lowering the transaction fees to nothing.
- MDEX is also based on the Heco chain and Ethereum. This is why the transaction speed is fast on the platform. Users can complete transactions in 3 seconds, unlike what happens on other platforms.
- MDEX also differs from Sushiswap and Uniswap through the repurchase & Destruction approach it uses. The aim of this approach is to employ a deflationary attack for its token, thereby ensuring more liquidity from the users.
What Are the Future Plans for MDEX
Attracting More Users
One of the future plans of MDEX is to attract more users to the platform. They aim to boost users’ experience to ensure that many investors and traders will join the protocol.
Adding Multiple Assets
MDEX developers plan to add a large number of multi-chain assets to the exchange. They also aim at multiplying encrypted assets, develop and offer user-friendly models, boost and strengthen community consensus and governance.
Deploy Multiple Chains
MDEX developers plan to ensure an optimal DEX experience for users by introducing multi-chain assets. They aim to link these assets by deploying different chains to the exchange. That way, the team can help to boost development for mainstream public blockchains.
If you have been struggling to understand the processes and mechanisms of this exchange, we hope that our MDEX review has helped you. This decentralized exchange has many advantages, such as low transaction fees, fast transactions, and sustained liquidity.
MDEX is pooling its strength from both Ethereum and Heco Chain, thereby ensuring a better user experience. According to the developer’s plans, the exchange will soon be the hub for diverse assets, even from other chains.
Also, the exchange is expected to integrate more DeFi services such as options contracts, lending, futures contracts, insurance, plus other decentralized finance services.
We’ve also discovered in our MDEX review that the exchange is boosting the HECO chain’s recognition. As more and more developers recognize the benefits of HECO, it may soon lead to more project development on the chain.