🟣MadMeX

MMX is a decentralized spot and perpetual exchange that supports low swap fees and zero price impact trades. Madmex Platform is both available on Polygon (https://madmex.io/) and Cronos (https://cronos.madmex.io/)

Trading is supported by a unique multi-asset pool that earns liquidity providers fees from market making, swap fees and leverage trading.

Dynamic pricing is supported by Chainlink Oracles (For Polygon) & Band Protocol (For Cronos) and an aggregate of prices from leading volume exchanges.

Main trading functions of MadMeX

Deposits:

Funds are deposited into the Vault through the minting of MLP tokens. e.g. if the price of MLP is $0.80, a user can mint 1 MLP by depositing 0.80 USDC tokens.

Withdrawals:

Funds can be withdrawn from the vault through the burning of MLP tokens. e.g. if the price of MLP is $0.80, a user can burn 1 MLP to redeem 0.80 USDC tokens.

Swaps:

The vault allows swapping of the tokens held in the vault. e.g. if the price of ETH is $1000 a user can swap 1 ETH for 1000 USDC through the swap function of the vault.

Longing:

Users can open a long position using the vault. e.g. to open a long, a user can deposit 1 ETH into the vault and open a position of $5,000, if the price of ETH at the time of opening the position is $1000, then this would be a 5x long position. If the price of ETH increases by 10%, the user would make a profit of $5,000 * 10% = $500. A snapshot of the collateral is taken when the position is opened, so in this example, the collateral would be recorded as $1000 and will not change even if the price of ETH changes. To ensure the vault has sufficient funds to pay out any profits, an amount of ETH equivalent to the position’s size is marked as reserved, for this position, 5 ETH in the vault would be reserved.

Shorting:

Users can open a short position using the vault. e.g. to open a short, a user can deposit 5000 USDC into the vault and open a position of $25,000. Stablecoins are required as collateral for shorts and similar to longs, an amount of stablecoins equivalent to the size of the position would be reserved to pay out any profits.

Liquidations:

A position can be liquidated by keepers if the losses of the position reduces the collateral to the point where position size / remaining collateral is more than the max allowed leverage.

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