Today we continue to talk about a project that may be good. This project is not yet online. The first round of testnet was successfully concluded at 6PM (UTC) on December 7, 2023. There will be a second phase of testing later, which is also a DEX. The project, in terms of mechanism, it says the original MYM mechanism is actually a mechanism similar to GMX. Because it is also a new project, it has not issued coins yet, so there are still certain opportunities for airdrops, etc.
1. MYX is an innovative decentralized sustainable exchange that achieves zero-slippage trading through the original Matching Pool Mechanism (MPM) and efficiently matches long and short positions, making capital efficiency as high as 125x, increasing unlimited possibilities.
2. MYX reconstructs the entire transaction process, ensures system stability through intelligent funding rates, and increases scalability by using functions such as LP income swaps that will be launched in the future.
3. The MYX team relies on its deep experience in managing hundreds of billions of monthly exchanges and more than US$1 billion in assets, and is committed to creating a simple and rich product experience for users. At the same time, the team has diversified investor backgrounds and can ensure resource cooperation and operational stability after the project goes online.
MYX’s original MPM (Matching Pool Mechanism) engine. Under this engine, LP will only bear the net exposure of the platform’s open positions (the liquidity pool acts as a counterparty, and then transfers the position in a delayed manner to match long and short positions). position of the leading trader.). Therefore, LPs are no longer involved in long and short transactions, but focus on efficient management and hedging of risks, without relying on traders' losses to make profits. When long-short trading is balanced, capital efficiency is maximized; and when long-short trading is imbalanced, LPs and market makers receive fair compensation through sustained and stable funding rates.
In the traditional peer-to-peer pool model, LP directly bears the counterparty risk of both long and short parties, and each transaction occupies a certain amount of liquidity, resulting in low capital efficiency. However, in MYX, long and short traders are matched through the MPM mechanism. After the short counterparty is formed, the liquidity temporarily occupied by the exposure will be quickly released, so that the capital efficiency of LP can be infinitely amplified under ideal conditions.
This innovative mechanism aims to provide traders, market makers and LPs with sustainable income based on real user needs, abandoning the old model of over-reliance on token incentives or traders' losses. Matching Pool Mechanism helps users achieve new breakthroughs in risk management and profit maximization, and promotes the trading ecosystem to move forward in a more fair and sustainable way.
Keeper system
MYX also introduces a key decentralized component: the Keeper system. This system gives token holders and LP stakers greater participation, allowing them to become the guardians of the platform. Keepers play an important role in ensuring the autonomy and security of smart contract operations, while this mechanism also enhances the decentralization and sustainability of the entire platform.
By participating in the Keeper system, community members can not only obtain token rewards, but also share transaction fees, which increases their source of income and directly promotes the activity of the platform's economic activities. With the expansion of MYX's cross-chain liquidity function, the role of Keepers has become more critical. They help promote the free flow of capital between different chains, thereby expanding the scope of LP and enhancing the connectivity of the entire DeFi ecosystem. play an important role. Therefore, the Keeper system is not only part of MYX’s decentralized architecture, but also the core of its LP fund scalability strategy.
User advantages
For trading users
1. Fair trading market: open source smart contract, zero MEV, and does not rely on user losses to make profits.
2. Low transaction costs: When trading, you can enjoy the lowest handling fees on the chain, reducing your transaction costs; when holding positions, you do not need to pay loan interest, reducing long-term holding costs.
3. Optimum depth: ensure that transactions are executed at the best price, with no spreads and zero slippage for large market orders, so you can enjoy all the trading advantages
4. User experience: friendly interface, allowing novices to get started easily. Trading guide, 24/7 professional customer service, always solving problems. Various strategies, easy to follow orders, easy to trade, extremely convenient.
For LP users
1. Sustainable high returns: Based on the powerful unique MPM mechanism, MYX achieves neutrality of LP positions and higher matching efficiency, providing users with stable and high returns.
2. Smarter risk control system: Equipped with an intelligent risk control system to comprehensively prevent network downtime, oracle attacks, liquidity runs, unilateral market and asset collapse risks, and is committed to providing safer, more efficient and competitive Trading environment to ensure the security of user assets.
MLP pool
The LP pool for each trading pair is independent of each other and consists only of the index token and quote token of that trading pair. Providing liquidity to the pool rewards limited partners with MLP tokens, which will appreciate in value as the pool will receive 40% of associated transaction fees, a portion of the financing fees, and profits and losses associated with closing positions.
Casting MLP
For a 0.1% fee, MLPs can mint with any or two tokens specified in the pool.
It is up to governance to set the target state, dictating the ratio between the two tokens. Price impact fees may be charged when the proportion of tokens deposited by a user does not meet expectations. The desired token ratio drives the pool towards the target weight, represented by the front-end by inputting the amount of MLP the user wishes to mint.
Redeem MLP
There is a 0.3% fee for burning MLP tokens to obtain assets from the pool. Users cannot specify which tokens they want to receive. The pool calculates the dollar amount of redemptions and pays out tokens to achieve the goal of moving the pool towards the target weight after redemptions.
rebalance
The pool may use the collected prices to influence fees, adjusting token weights from time to time based on target ratios.
risk control
In MYX, LP does not rely on profiting from traders' losses. Instead, we chose to use an intelligent fund rate adjustment system and adopt a large-scale market maker model to achieve seamless liquidity connection between CEX and DEX, increase the overall liquidity of the market, and at the same time avoid the common free payment of traditional DEX to the greatest extent. Loss issue.
This unique approach allows LPs to more easily and effectively manage risk exposures and achieve hedging. Even when the market encounters extreme fluctuations or even liquidity dries up, MYX can effectively prevent malicious attackers from taking advantage of liquidity depletion to make profits by adopting the DPL+ADL mechanism.
DPL
Situations may arise where even increased funding rates fail to improve market imbalances, causing the market to shift significantly to one side. In this context, it would be prudent for liquidity providers who wish to avoid capital fluctuations to hedge their positions, especially if market appetite intensifies.
While liquidity providers may choose not to hedge their positions, potentially taking advantage of a trader's losses or losing money when the trader is profitable.
Liquidity providers can seek to hedge their passive positions in other markets, such as centralized exchanges. Due to the two-token design of the liquidity provider pool, liquidity provider exposures are easily identified and managed.
Automatic deleveraging (ADL)
After a period of time when trading volume continues to expand and the market environment remains balanced, open positions may surge to an order of magnitude much larger than the liquidity pool. While this improves returns on providing liquidity, it also creates challenges in certain scenarios.
In the event that the utilization of the liquidity pool reaches maximum capacity, all new opening orders will be rejected, while closing orders and liquidations will not be affected.
Capital constraints prevent liquidity providers (LPs) from taking on additional positions, making the process of closing or liquidating positions impractical in situations that would otherwise exacerbate market imbalances.
To alleviate this challenge, MYX has implemented an automatic deleveraging (ADL) system. This mechanism forces the closing of the most profitable relative positions, thus simultaneously reducing long and short positions by equal amounts. This system can reduce positions without resorting to any additional capital.
Financing situation
MYX, incubated by D11 Labs, recently completed a US$5 million seed round at a valuation of US$50 million. This round of financing was led by HongShan (Sequoia China). Other investors include Consensys, Hack VC, OKX Ventures, Redpoint China , HashKey Capital, Foresight Ventures, GSR Markets, Alti5, Leland Ventures, Cypher Capital, Bing Ventures, Lecca Ventures, etc. These funds will be used to accelerate MYX's technological innovation and market expansion, and promote the rapid launch and large-scale development of its mainnet products.
community situation
Currently there are 170,000 fans on discord and 30,000 fans on Twitter, which is not a lot.
Finally, let me summarize this project. At present, this project has not been launched yet, and the specific situation is not very clear. Because I heard that it has an innovative mechanism and was recommended by friends in the Planet fan group, I went to study it specifically. I want to see if it can bring you some new opportunities, but I found that the innovation is not very big, so I also made some iterations based on GMX. Then I opened the official website for the first time, and it actually supports Chinese. Then the investment team of Red Shirt Capital did not have real names, so I doubted that this project was done by the Chinese. It does not mean that the projects done by the Chinese are not good, but It is very risky for Chinese people to do projects. It is even worse if they are physically in China. Halfway through, they may be invited by the police uncle to drink tea. This is a very real problem. But this project has not been launched yet. It is not a big problem to implement new changes. I will continue to pay attention to it later.