How does MDEX construct the DEX map from the first transaction volume of HECO to cross the BSC?

Discussions about moving to a central trading platform have been going on since last year. The reason is simple, DEX is a core component of the DEFI ecosystem. Perhaps the lack of algorithm stablecoin, synthetic assets and other applications Defi can still develop rapidly. The development of DEFI without DEX will be limited and even affect the ecology of a chain.

Dex can influence the ecology of a chain, not only in Ethereum, but also in HECO and BSC. Therefore, some users attribute the rapid rise of HECO and BSC to the Dex "MDEX" and "Pancakeswap" on their chains.

Dex competition is fierce, each major public chain presents a single leading, aggregated trading platform as a supplement situation. The next big thing may be that Dex, the leader of the major chains, is starting to support cross-chains, eating into the trading volume of other chains.

On April 8, MDEX announced the full-function deployment of BSC in Binance smart chain, opening the reward of single currency pledge mining, transaction mining and liquidity mining, and simultaneously opening the MDX cross-chain bridge function. Within 40 minutes of launching Binance smart chain BSC, TVL has exceeded $1 billion.

Thanks to EVM compatibility, MDEX can be quickly deployed to the BSC

On January 6, 2021, MDEX, a decentralized trading platform based on Huocoin ecological chain HECO, was born. Within 4 months, the trading volume of MDEX successively exceeded 1inch, Uniswap and Pancakeswap, successfully reaching the top of the list of DEX.

MDEX traded about $4.781 billion in a single day, or 50.68 percent of its total turnover of $9.432 billion, according to Coingecko data.

Source: Coingecko

Delve into the reasons for Mdex's rise at both the right time and the right place. By the end of the day, Uniswap had completed mass user education on Dex, with a cumulative transaction volume of $100 billion. It took 840 days for Uniswap to accomplish the same feat in 50 days for Mdex. At the same time, a spike in Ethereum prices and on-chain activity led to a surge in block congestion fees.

The birth of the BSC was also a demonstration of how to quickly build the DEFI ecosystem on a chain. Then, Huobi began to deconstruct Defi, and MDEX was born.

Dex, such as Uniswap and 1Inch, are undoubtedly successful for the Ethereum ecosystem. Correspondingly, MDEX is a success for Heco. Dex that can capture the transaction value of the public chain are all successful. Look back in history. Few Dex seem to be able to succeed on both public chains. Previously, 1Inch announced that it would be deploying its full capabilities on the BSC, and today its daily trading volume on the BSC is a fraction (7%) of the daily trading volume of BSC native DEX Pancakeswap.

On April 5, MDEX announced that it will complete the full-featured deployment of the BSC on the Binance Smart Chain on April 8. For MDEX, this will be a completely different challenge. There are both native giants Pancakeswap in the BSC ecosystem and 1inch from the Ethereum ecosystem.

According to the official information of MDEX, single-currency pledge mining, transaction mining and liquidity mining incentives will be launched simultaneously when it is officially deployed to BSC, and cross-chain communication between MDX in HECO and BSC will be opened.

Source: MDEX

MDEX can be quickly deployed to BSC because both HECO and BSC belong to EVM compatible chains. The relationship between the EVM compatibility chain and Ethereum, as noted by the well-known venture capital firm IOSG, is like   Kusama and Polkadot. The EVM compatibility chain carries a lot of Ethereum traffic spillover and will remain very hot in the short term.

The deployment of MDEX in both HECO and BSC is conducive to ecological integration, and at the same time, it can capture the value of the public chain of the two trading platforms. Even in the future, MDEX could be deployed on the Ethereum Layer 2 network and other EVM-compatible chains to compete with other DEX's.

Where is the base of MDEX layout BSC?

Before MDEX announced that it would deploy full functionality in the BSC, platforms like 1Inch also announced that they would support public chains other than Ethereum, but the results were not satisfactory.

So, where is MDEX deployed in BSC to compete with Pancakeswap?

According to TheBlock's and HECO's official data, BSC's and HECO's total lockup capacity (TVL) is currently $17 billion and $8.8 billion respectively. MDEX has captured about $2.2bn worth of liquidity on HECO. In contrast, Pancakeswap captured about $6.6 billion worth of liquidity on the BSC.

According to Kingdata, Mdex trades an average of about 1.3 million trades a day, with a cumulative 77.77 million trades and a daily turnover of $4.7 billion.

In terms of TVL, MDEX and its ecology are at a disadvantage, but MDEX trades three times as much as Pancakeswap for two reasons:

In terms of trading, MDEX has low transaction cost and good user experience. It only takes 3 seconds to confirm a trade, and the cost of a single transaction is as low as 0.001 US dollars, which means that one US dollar can carry out thousands of transactions. In the future, transaction fees will also be reduced, and even close to zero cost transaction. Second, the rise of MDX, the MDEX platform token, has attracted more users to participate in liquidity mining, making the trading pool more full. A full trading pool means MDEX has better depth and lower slip points.

For example, the trading pairs of BTC, ETH and stablecoin, which have the largest trading volume, MDEX users provided about 321 million US dollars for HBTC/USDT trading pairs, while users on Pancakeswap platform provided only 3.74 million US dollars for BTCB/BUSD trading pairs. Users on the MDEX platform provided about $211 million in liquidity for ETH/USDT pairs, while users on the Pancakeswap platform provided only $1.81 million in liquidity for ETH/BUSD pairs.

Source: MDEX

Accordingly, the liquidity funds of WBTC/USDC and ETH/USDC on the Uniswap platform are 11.87 million dollars and 298 million dollars respectively.

This means that in terms of mainstream currencies, MDEX is already the decentralized trading platform with the lowest slip point and the best depth in the market at present. Meanwhile, it is also the decentralized trading platform with the least volatile loss if it participates in the liquidity mining of mainstream currencies.

Of course, that doesn't mean Mdex has become the best decentralized trading platform yet. Mdex lags behind other platforms in terms of the number of currencies and the depth of transactions in newer currencies.

In addition to the above reasons, MDEX is able to break through an important but overlooked detail: the subsidy of transaction fees. According to Kingdata, Mdex's total transaction fees are $463 million, while Mdex's subsidized transaction fees have exceeded $400 million.

Mdex's BSC layout is the first step in its strategic expansion, which will be followed by increased support for public chains such as Okexchain, Dot, and Near.

MDX halved 45 days in advance, and supply and demand values may be readjusted

After the deployment of MDEX to the BSC, 2 million MDXs will be destroyed at HECO while 2 million MDXs will be cast at the BSC. The MDX portion of the destruction comes from the "Market Operations" segment. The MDX supply remains at around 1 billion pieces, but will be halved 45 days earlier than the original white paper set.

In other words, some 800 million MDXs previously allocated to HECO's liquidity and trade mining will be allocated to the BSC ecosystem. At present, about 180 million MDXs have been excavated by HECO ecologically. After this round is halved in advance, HECO and BSC will equally share the remaining 620 million MDXs, which is equivalent to 310 million MDXs unexcavated by HECO and BSC ecologically.

This means that the supply and demand of MDX has changed and value capture is beginning to extend to the BSC ecosystem.

In addition, MDEX will also launch a 10-day single currency mining campaign, covering 15 major and popular currencies. This activity is equivalent to providing a single currency wealth management product for BSC Ecology.

At the same time, BSC MDEX transaction fee remains at 0.3%, of which 0.1% is used for eco-fund and project development and 0.18% is used for former Boardrome   Vote approved for distribution of rewards to MDX holders, 0.02% for repurchase and destruction of MDX. Notably, Boardroom   It will open at 20:00 on April 11.

The deployment of MDEX in BSC was unexpected, but in line with the development rules of the industry. Promethean extreme to decline, only by constantly expanding and capturing the value of a larger field to ensure the maximum of their own value. The same is true for MDX holders. In the short term, it may not be good, but in the long term, the value boundary is wider.

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