How does MDEX reach the top of CMC DEX in one month?

2018, Co-founder of decentralized lending agreement Dharma & NBSP; Brendan Forster came up with the concept of Defi, but the concept of Defi didn't really catch on and attract users. Until Uniswap started to have a wealth effect and completed a sensational Defi user education campaign.

The rise of Uniswap is not plain sailing, and it is constantly faced with the impact of platforms such as Sushiswap and 1Inch on its growth road.

Just when everyone thought that only Uniswap V3 could beat Uniswap itself, Ethereum's price spike, resulting in traffic congestion and high transfer fees, gave other public chains an opportunity.

In a way, Dex is a chain, the most central component of the Defi ecosystem. The evolution of Dex shows that it has undergone two migrations. In these two migrations, the first migration of the main body is low transfer fees, high performance public chain, its current performance is mediocre. The main body of the second migration is the high performance public chain backed by the centralized trading platform. The latter created Dex in just a month, rivaling years of Uniswap.

Some people call it the "deconstruction" of DEFI ecology for the rapid rise of the public chain Huobi Ecological Chain (HECO) backed by the optimal data on the market today. Of course, the reason for its success is also inseparable from the strong effect of creating wealth Dex "MDEX".

Ethereum congestion, civilian Dex secondary migration to achieve curve overtaking

Data show that the daily transaction volume of Dex has exceeded 10 billion dollars, and the average number of daily active addresses has exceeded 50,000. This is thanks to the popularity of Defi and the user education done by Uniswap. However, Ethereum's frequent congestion prompted users to begin their first migration.

Public chains with low transaction costs and fast transfer, such as TRON and EOS, have become the first choice for some projects. However, due to the lack of public chain ecology and uneven project levels, excellent projects have returned to Ethereum, and Uniswap's position in the Dex field has been further consolidated.

Excellent project backflow, Ethereum completed a new round of Defi value capture, and token prices began to skyrocket. With skyrocketing Ethereum transfer fees and occasional gridlock, the average investor can't afford to pay tens or hundreds of dollars for a quick transfer. Coinciding with the large-scale promotion of BSC public chain, DEX started its second transfer.

The rapid construction and rise of BSC Ecosystem gives a demonstration of how to quickly build DEFI Ecosystem on a chain. Centralized trading platforms began to deconstruct DEFI.

MDEX is the result of Huobi's deconstruction of Defi.

In the past 24 hours, MDEX traded $7.1 billion, more than all other Dex combined and accounting for 62.5% of all Dex trading volume, according to Coingecko.

Photo source: CoinGecko

In addition, there is currently more than $1.85 billion of liquidity in MDEX.

According to Kingdata, the average hot project on the MDEX platform rose more than 10 times in the first month. Due to MDEX revenue enabling HECO ecology, MDX real-time has a deflation rate of 7.51% and now has revenues of more than $120 million. At the same time, MDEX ranked first with 99.98% success rate of transaction settlement, 1Inch's success rate of transaction settlement was 89.2%, and Uniswap's success rate was only 81.2%.

Uniswap completed the process of DEX from 0 to 1, and then, represented by MDEX and backed by the decentralized public chain launched by the centralized trading platform, DEX began to absorb the value of DEFI. It took only one month for the event to surpass the data. A month ago, Mdex was trading at a fraction of Uniswap's volume. Today, Mdex is trading more than Uniswap.

Of course, many people attribute Mdex's success to Ethereum congestion and high Gas prices, but that's just one of the less important factors. The main reason is that MDEX is a public chain ecological project of HECO, so it has natural advantages and has received strong support from Huobi, a centralized platform.

In the Dex space, total locked up positions (TVL) and access to liquidity are at the core, which is also one of the key metrics to measure the value of Dex. Previously, Sushiswap had issued coins to suck liquidity from Uniswap, leading the market to believe that Uniswap was about to cede dominance.

Because only if the liquidity of DEX is sufficient, the slippage of users in DEX trading will not be too large. For users, there is almost no difference in experience between using a low-slip-point DEX and a centralized trading platform. Currently, MDEX's slip point is less than 0.1 percent. This is also the reason why MDEX can become the first DEX in the DEX list of CoinMarketCap and CoingekCo.

Bottom the MDEX wealth effect

As early as three years ago, there were a large number of decentralized dApps and derivatives in the blockchain, but none of them produced qualitative changes, successfully broke the circle and attracted a large number of users to participate. The main reason is the absence of the "Dex" that is the core of the wealth effect.

Looking back, Uniswap is like IC0 general, explosive growth, every day there are countless projects, investors buy casually, full of feel empty, Uniswap with a strong rich effect to attract a large number of users to participate.

Dex's pricing mechanism creates this hundred-fold wealth effect. In other words, investors buy the token, pushing up the price of the token, which in turn attracts a lot of investors. "It's a natural way to spread, because once you buy it, you have to go back and promote it so others can buy it."

Uniswap has completed the user education, users are familiar enough with the operation of DEFI, MDEX re-entry eliminates this cumbersome process, and this is one of the reasons why MDEX has been able to grow so quickly.

After Huobi's deconstruction of DEFI, the original investment logic verified in the Ethereum DEFI ecology can still be applied to MDEX, which generates a strong wealth effect. According to Kingdata, MDX, the MDEX platform token, rose 430% in the first month of its launch, and the average monthly increase of the platform's hot projects was as high as 1000%.

Photo source: KingData

Take Hashbridge (HBO), one of MDEX's most successful projects over the past month. Hashbridge is a predictive solution on the HECO chain that provides a complete set of data service solutions, including community node and institutional node mechanisms, mortgage asset pricing, data validation, arbitration, and reward and punishment mechanisms. Its role is similar to that of the Ethereum prognosant projects Chainlink and Nest. The logic of the investment prognosant was demonstrated in 2020. Chainlink successfully entered the top 10 list of cryptocurrencies by total market capitalization with a hundfold increase. So shortly after Hashbridge launched MDEX, it was up more than a hundredfold.

There is a similarity among the top MDEX gainers, and success stories can be found on Ethereum. For example, the second biggest gainer in MDEX is Basis Gold Share (Bags), an algorithmic stablecoin project. And algorithmic stablecoin previously in Ethereum investment hot degree from a month event then launched 4 generations can be seen. In addition, the inflationary logic of MDEX ecological cross-chain lending projects such as Filda (Filda) and Machine Gun Pond (HFI) can be found in Ethereum Defi ecology.

In addition, Mdex's success lies in the fact that Mdex's liquid mining is also attractive to low-risk investors. According to the statistics of the crypto Pavilion, the annual yield of liquidity mining (using MDX-HBTC LP) on MDEX is up to 401.8%, followed by the yield of liquidity mining using MDX-ETH LP token is 354.9%. And Sushiswap on the current liquidity mining annualized rate of return of the highest project KP3R-WETH LP annualized rate of return is only 129.45%.

Of course, all this is not to say that MDEX has completely surpassed the old Dex such as Uniswap and Sushiswap, which still has a lot to learn from them.

Due to the complementarity in many aspects between the new DEX and the old DEX represented by MDEX, they are still in the stage of mutual complementarity and mutual learning, and have not entered the link of direct competition. It may not be until Ethereum 2.0 comes online and the established Dex reaches the level of MDEX in terms of transaction speed and fluency that we see a real competition between the two.

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