HECO AMA Series Recap — Mdex
Guest: Kiko from Mdex
Host: Hugo from Heco
Question 1: Could you tell us more about your project? In other words, what does MDEX do?
The concept of DeFi was proposed in 2018, but it wasn’t widely recognized by people. It was not until Uniswap began to have a wealth effect and completed a sensational DeFi user education that many people gradually pay attention to DEX. However, the skyrocketing price of Ethereum has caused congestion in transactions and high transaction fees. Thus, it is difficult for ordinary investors to bear the transfer fees of tens of hundreds of dollars for a single transfer, which gives other public chain opportunities. With the large-scale promotion of BSC public chain and HECO public chain, MDEX was born under such an opportunity with the high-performance advantages of HECO and BSC.
MDEX.COM is a decentralized cross-chain transaction protocol that supports BSC and HECO, long ranking №1 on the DEX rankings of CoinMarketCap and CoinGecko. It combines the advantages of low transaction fees on the Huobi ECO Chain and prosperity of Binance ecosystem, aiming at creating a high-performance composite DEX ecosystem, providing maximized rewards for participants with the “dual mining mechanism” of liquidity mining and transaction mining. It also manages to realize a closed and self-driven loop for value capture through using its transaction fees to repurchase and burn MDX.
The original intention and vision of MDEX is to start from trading, commit itself to building a DeFi platform integrating DEX, IMO, and DAO. In this way, it provides one-stop liquidity services for more high-quality assets, and offers users with safe, reliable and cost-effective transaction experience with diverse and high-quality assets.
Question 2: There are many similar out there, some have been quite successful. What is special about MDEX compared to other projects?
Compared to other DEX, such as Uniswap. DEX is led by Uniswap, which uses an automated market maker (AMM) operation model. It allows everyone to provide liquidity to the exchange to earn income.
As the data ecology on the public chain Ethereum continues to expand, the problems of high gas fees, slow block confirmation, and high transactions slippage on dex transactions, as represented by UniSwap, receive increasing criticism users. By taking the advantage of high TPS performance of HECO and BSC, MDEX greatly solves the problems of high gas fee and long confirmation time. When flowers are fragment, butterflies will come. Since Mdex’s launch on BSC on April 8, the excellent BSC ecology has given Mdex a huge boost to realize further development, which is why Mdex’s transaction volume, lock-up volume and the number of users reached record high.
Question 3:Great, could you give us some info on the MDEX Token?
The total supply of Mdex’s platform token MDX is about 1 billion, of which 10% is used as a team reward for team operation, technology research and development, etc., and it will be unlocked in 24 months after being launched by smart contracts. 7% is used as an early investor share to provide more sufficient and beneficial funds and resources for the development of Mdex; 3% is used for market promotion and brand building; these two shares are unlocked in twelve months after going online. The remaining 49% and 31% are used for liquidity mining and trading mining on HECO and BSC respectively.
Question 4:What would be one’s motive to hold MDEX tokens? What can we do with $MDX ?
As the core medium of exchange token of MDEX, MDX not only represents the rights of the holders, but also has its practical application value. MDX can be used in the following scenarios.
1 Governance tokens
MDX is a community-led decentralized project that can be used for community governance of MDEX to make decisions on major issues in the community. Such as voting on transaction fee ratios, review of other important rules, and the decision to achieve deflation in the face of periodic repurchase and destruction of tokens. The list is as follows:
The comprehensive evaluation is made according to the transaction volume and total value locked of the project, and the MDX users vote for the decision.
1.2 Repurchase and destruction
MDX will charge 0.3% of the transaction fee, and 66% of the total fee income will be used to repurchase and burn MDX and buy HT to airdrop to users who mortgage MDX. Among them, 40% of the above allocation ratio is used to repurchase and destroy MDX, and the remaining 60% is used to purchase HT for airdrops to MDX pledgers, and the chain is transparent.
2 Standard fundraising tokens
MDX is also a standard fundraising token used by HT-IMO, a de-centralization fundraising protocol based on MDEX platform. It’s similar to use ETH to do ICOs on Ethereum platform and will have greater value as IMO is widely used.
Question 5: After more than half a year of development, Mdex has made considerable achievements, and its transaction volume has been ranking №1 in DEX industry for a long time. Can you sum up the phased achievements made by Mdex in the past six months?
Answer: MDEX officially launched transaction mining and liquidity mining on January 19, 2021, with safe and smooth operation for more than half a year. During this period, MDEX successfully implemented Dual-Chain Deployment and launched on the Huobi Ecological Chain (Heco) and the Binance Smart Chain (BSC). As of August 31, 2021, MDEX transaction mining subsidies and liquidity mining rewards have produced a total of 646 million MDX, worth over $900 million, and the MDEX boardroom has completed a total of about $480 million in rewards; MDEX daily transaction volume ranks №1 in CoinMarketCap and CoinGecko of the global DEX rankings, and still keep topping the list; the cumulative transaction volume of last six-month has exceeded $400 billion. MDEX Dual-Chain Deployment (Heco&BSC) TVL exceeds US$2.5 billion.
On February 6, 2021, MDEX launched the Boradroom Repurchase and Burn Pool, the world’s first smart contract thatautomatically executes the repurchases and burn mechanism. As of August 31, 2021, MDEX dual-chain (Heco&BSC) had repurchased and burned totaled 83 million MDX, with an average daily repurchase and burn volume of 370,000 MDX and a total repurchase amount of more than $186 million.
In order to give MDX more ecological application scenarios, MDEX has launched a number of product functions:
1.In the first phase, the number of participants of IMO (Initial Mdex Offering) exceeded 8,874, with a total transaction amount of $387 million;
2.Up to now, 13 “Burning Black Hole” campaigns have been launched, with more than 1.91 million MDX being burned.
Global expansion will be a focus of MDEX’s operations in the near future. It will expand MDEX’s brand influence in the entire DEX industry, so that more and more users can understand the use of MDEX transactions, namely mining, liquidity mining, and subsequent ecological scenarios.
Question 6: MDEX launched the Boardroom Lock-up function in July. What is the data performance after the launch?
Answer: MDEX launched the Boardroom Lock-up function on July 17, marking another step towards DAO. Up to now, the MDEX’s double-chain lock-up market capitalization has exceeded $600 million, MDX lock-up rate of 89.62%, MDX with more than 30-day lock-up volume accounting for 62.93% of the total circulation, and only 6.4 % of actual circulation of MDX.
MDEX has been maintaining outstanding performance because of its premium products. On the one hand, it creates differentiated liquidity mining and transaction mining functional value for its users. On the other hand, the Boardroom staking lock-up gives users more rights and interests, allowing MDX holders to enjoy long-term ecological benefits and governance rights.
With MDEX Boardroom position lock-up, taking 365 days as an example. The dual-chain APY will always stay stable at more than 500%. In this case, joining MDEX mining is equivalent to holding a “stable token” mining machine with APY more than 500%, and no electricity cost is required.
Question 7: We noticed that MDEX has just released a new product — Invitation Mechanism. We would like to know why MDEX released this invitation products during this time period?
Answer: The Invitation Mechanism is not an innovative product of MDEX. At present, several leading CEXs in the industry have this mechanism for a long time, and some other DEX platforms have also launched the functions of invitation with good feedback. People who invite friends to do transactions on MDEX not only enjoy platform commission, but also save service fees for their friends. This is in line with the original intention of providing users with a cost-effective transaction experience and giving users benefits at the beginning of MDEX’s establishment. This Invitation Mechanism achieves a lower cost of centralized transactions and meets users’ demand.
After the functions of invitation are launched, the MDEX team may hold similar activities such as team transaction competitions in the follow-up operation plan. This can effectively promote the activity of the platform and allow more people to learn about MDEX. The more the transactions on MDEX, the more transaction fees, and the more the number of MDX repurchased and burned, creating a benign closed loop.
Question 8: MDEX released the Hunter plan in August — 10 million US Dollars to Support Ecological Projects. Can you give us a detailed introduction to it?
Answer: The Hunter plan is the MDEX Foundation’s development support plan for the global ecology. The Hunter plan has a total of $10 million, giving priority to fund projects that share MDEX’s philosophy, including high-quality projects like Metaverse, DeFi, GameFi, and NFT. The main goal of the Hunter plan released by the MDEX Foundation this time is to continuously consolidate the platform business, enrich the platform transaction diversity, provide financial support for high-quality projects, and assist project parties to expand broader ecological resources, and fundamentally promote the entire ecosystem develop.
The project parties can submit an application to MDEX. After review being passed, they will gain as follows:
(1) MDEX Ecological Foundation will increase $50,000 liquidity to the project on MDEX;
(2) If TVL is greater than or equal to $50 million for 7 consecutive days, MDEX Ecological Foundation will increase $150,000 in liquidity to the project;
(3) After projects attain over $2 million in liquidity and $3 million transaction volume , there will be a chance to open liquidity mining rewards, and the platform will increase another $300,000 in liquidity to the project.
You can also check the specific plan details in the official website announcement: https://mdexdoc.gitbook.io/doc/announcement/mdex-foundation-releases-usd10-million-hunter-program-to-help-ecological-projects.
Question 9: MDEX announced that DAO governance will be launched soon. What are the rules of DAO? What is its concept?
Answer: the development of MDEX follows the essence of blockchain-DAO autonomy. The core charm of DAO is that the benefits and value created in the community will be shared by all contributors fairly. The enabling of DAO autonomy by MDEX provides MDX holders with the chance to have a stronger sense of belonging to MDEX, making MDEX truly enter the era of community autonomy and win-win. This, will further allow the community to have more right to make independent decisions and platform operations to be more transparent and decentralized.
MDEX’s upcoming DAO governance rules are as follows:
1. All holders of Boardroom Lock-up MDX will receive the official DAO governance voucher tokens issued uniformly. The governance voucher tokens are generated by the lock-up amount with the rate of 1:1, and users holders can enter the official website to obtain them. The governance voucher can be used in the following scenarios :
1) Be used for DAO voting;
2) Obtain the incomes of DAO staking voting;
3) Participate in IMO with the lock-up voucher.
2.With the governance voucher, you will get the right of DAO governance
1) Stake a certain amount of governance vouchers, so as to participate in representatives and nodes elections. The users can vote on the representatives and nodes.
- From the beginning of each natural month to the end of the month, 30 days, and according to the order of average number of votes, the 9 address holders with the highest number of votes become 9 representatives and nodes.
- After all representatives and nodes are successfully elected, the election stays valid for one natural month.
2) All users who hold governance vouchers can initiate community proposals, and further submit them when staking a certain amount of governance vouchers.
3) Representatives and nodes can choose the community proposals they support. Proposals supported by no less than 5 representatives and nodes can enter the community referendum.
4) All users vote on the proposals. During the voting period, the proposal with the most votes will be approved and finally executed by the MDEX team.
Question 10: As a DEX, providing users with the best transaction experience is always the core of the exchange. What recent measures does MDEX have to improve the transaction experience for users?
Answer: Even though MDEX has already attracted a lot of users in the DEX industry, MDEX doesn’t give up on continuing to explore the future direction of the entire DEX market. Instead, it continues to provide users with a better experience. MDEX launched the Market Information Function in July, so that users can quickly understand the market dynamics and conduct transactions based on this. This function is a new product in the DEX industry and will continue to improve and iterate in the future. The aforementioned Invitation Rebate Mechanism is also a measure taken by MDEX to feed back users, aiming to better bring more rights and interests to users. MDEX will plan to launch the Order Book Function soon. By then, it will support the users to use limit orders, market prices and other functions for transaction. All pending orders are stored in the order book of blockchain, and the orders in the order book will be matched, transacted and settled accounts according to the conditions of the order. This is a highly decentralized model. After launching this function, it will greatly reduce the gap in transaction experience with centralized exchanges.
Question 11: MDEX ushered in the second halving in September. This is undoubtedly good news for investors. Speaking of the good news, what other development plans does MDEX have in 2021?
Answer: the upcoming MDX is reduced to half, coming along with the existing trident: repurchase and burn mechanism, Burning Black Hole campaign, and Boardroom lock-up product, will bring MDX into the era of low inflation, which is good news for MDX.
MDEX has announced the latest roadmap when it exercised its first halving. Since then, it has been planning for the future according to the latest roadmap. The long-term lock-up function of the Boardroom has been launched so that more MDX holders and users can get gain more benefits. In return, it also fired the first shot of DAO. At the same time, MDEX will launch more IMOs to provide users with more air-drop benefits. In addition, MDEX will launch three plans in the follow-up to create more potential benefits for users.
The first is the M-USD plan, which is to launch a multi-collateral method to mint stable cryptocurrency MUSD, and provide suitable application scenarios and liquidity rewards in the ecology so as to offer token in liquidity for MDX holders;
The second is the M-MEX plan, which is to launch a series of derivatives tools to provide users with ways and paths to create multiple benefits;
The last is the M-League plan. On the basis of the existing 10-million USD Hunter plan, more funds will be injected into a series of supporting projects such as IMO, ecological fund investment and start-up project incubator, so as to better invest and serve global development and to bring benefits to users with high-quality projects and ecology.
These series of measures are all MDEX’s visions. The players of decentralized transactions are all expecting these new ways.
Second Last Question
Question 12: How do you guarantee users’ asset security?
MDEX has been committed to becoming a compound DeFi ecology that integrates DEX, IMO and DAO. Since its launch, it has been prioritising security and correctness of its smart contracts and blockchain-based protocols. Up till now, it has passed the audits by three major auditors, namely Fairyproof, SlowMist and CERITKS.
MDEX has been operating safely and smoothly for 5 months since its launch, and as the functions of MDEX are gradually improved, it has expanded from HECO to BSC and ETH. In future, it will incorporate more underlying assets in the MDEX ecology.
While growing steadily, MDEX has been protecting the asset security and transaction security of users. MDEX has launched a bug bounty campaign which serves as a bridge for more blockchain security researchers to safeguard users asset security and joint lybuild a better MDEX ecology. Meanwhile, for projects to enter MDEX whitelist, they must be compliant projects that have audit reports from authoritative auditing agencies.
Question 13: Anything else you guys would like to add before we go into the live questions session?
MDEX launches Referrals with Rebates and Commissions. All users can invite their friends to join MDEX and earn commission together. Please find here the specific details: https://mdexofficial.medium.com/mdex-bsc-launches-referrals-with-rebates-and-commissions-b64527e0a82c
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