Let’s talk about the trades again: who exactly dumped $DEXE ?
I went long on $DEXE multiple times, basically lost a lot of times, and in the end I caught a run—total profit was about $60k.
After I closed the position and took the profits, I started thinking about why the project team would do this.
The article mentions that due to the mirror mechanism, the price was dumped first, then a message was released on-chain afterward.
For every trade, I want to figure out what happened, so I dug into it and came to the conclusion:
Most likely, DWF deliberately planned the dump, and the DEXE market maker was not DWF.
Reasons are as follows:
1. By querying DEXE’s position entities via arkm, the one with the biggest reduction was ceffu. Through traceability, on July 22, Ceffu → Binance Deposit amount was about 719,727 DEXE. Ceffu either directly transferred into Binance spot, or routed through 0x98 into Binance spot. (See Figures 1 and 2)
2. Ceffu’s custodian includes DWF, and only DWF is accepted as the party that can take DEXE as collateral for lending into ceffu. According to the falcon documentation, DWF can choose to place assets into a DEX to do CEX-DEX arbitrage, or it can use the ceffu mirror to enter CEX trading strategies as a way to generate yield. (See Figure 3)
3. MirrorX isn’t simply storing assets on an exchange. Instead, it keeps the assets in Ceffu Custody, while creating a 1:1 mapped position on the exchange (a Mirror Position).
That means the exchange can directly use this mapped position for trading, risk control, margin adjustments, and price protection, while the original assets remain in the Ceffu custody system.
4. According to USDF’s revenue mechanism, falcon’s risk controls can reduce positions, sell spot, and liquidate low-pressure assets to keep the collateral system healthy. Meanwhile, according to ceffu’s official documentation, the person who initiates mirroring must be the creator or an admin.
Therefore, the holder of DEXE—or the project team—collateralized into falcon, then falcon was custodied to ceffu, and the initiator of the mirrox strategy from falcon to ceffu dumped to Binance spot. (See Figure 4)
5. If the DWF strategy had problems, leading to liquidation or selling positions: before the liquidation, ceffu also conducted a 2-DEEX transfer test via 0x98 (see Figure 2). But the actual liquidation mechanism was executed automatically—which looks even more like a planned dump.
In summary: DEXE’s sudden crash should be DWF’s planned use of DEXE as collateral in FF—dumping via ceffu in a mirrored way to dump into Binance spot.
I went long on $DEXE multiple times, basically lost a lot of times, and in the end I caught a run—total profit was about $60k.
After I closed the position and took the profits, I started thinking about why the project team would do this.
The article mentions that due to the mirror mechanism, the price was dumped first, then a message was released on-chain afterward.
For every trade, I want to figure out what happened, so I dug into it and came to the conclusion:
Most likely, DWF deliberately planned the dump, and the DEXE market maker was not DWF.
Reasons are as follows:
1. By querying DEXE’s position entities via arkm, the one with the biggest reduction was ceffu. Through traceability, on July 22, Ceffu → Binance Deposit amount was about 719,727 DEXE. Ceffu either directly transferred into Binance spot, or routed through 0x98 into Binance spot. (See Figures 1 and 2)
2. Ceffu’s custodian includes DWF, and only DWF is accepted as the party that can take DEXE as collateral for lending into ceffu. According to the falcon documentation, DWF can choose to place assets into a DEX to do CEX-DEX arbitrage, or it can use the ceffu mirror to enter CEX trading strategies as a way to generate yield. (See Figure 3)
3. MirrorX isn’t simply storing assets on an exchange. Instead, it keeps the assets in Ceffu Custody, while creating a 1:1 mapped position on the exchange (a Mirror Position).
That means the exchange can directly use this mapped position for trading, risk control, margin adjustments, and price protection, while the original assets remain in the Ceffu custody system.
4. According to USDF’s revenue mechanism, falcon’s risk controls can reduce positions, sell spot, and liquidate low-pressure assets to keep the collateral system healthy. Meanwhile, according to ceffu’s official documentation, the person who initiates mirroring must be the creator or an admin.
Therefore, the holder of DEXE—or the project team—collateralized into falcon, then falcon was custodied to ceffu, and the initiator of the mirrox strategy from falcon to ceffu dumped to Binance spot. (See Figure 4)
5. If the DWF strategy had problems, leading to liquidation or selling positions: before the liquidation, ceffu also conducted a 2-DEEX transfer test via 0x98 (see Figure 2). But the actual liquidation mechanism was executed automatically—which looks even more like a planned dump.
In summary: DEXE’s sudden crash should be DWF’s planned use of DEXE as collateral in FF—dumping via ceffu in a mirrored way to dump into Binance spot.