Currently ranked the top DEX on CoinmarketCap the new young decentralized exchange MDEX has grabbed more than one third of the DEX market share with a 24 hour trading volume of over USD 2 Billion at the time of this writing.
Having just launched last month on January 19, 2021, these statistics are astounding. How did such a new decentralized exchange manage to capture such a huge chunk of the market share and emerge ahead of leaders like Uniswap, Pancakeswap and Sushiswap?
What is the secret ingredient?
DEX Environment is Growing Strong
Well for one thing, the DEX environment has in general been growing strong since 2020. The interest in decentralized finance that began last year has not slowed down and an increasing number of leading DEXes now consistently boast 24-hour volumes of over USD 1 Billion, rare occurrences in 2020.
This signals rising interest in DEX trading despite the seemingly wacky and food-centric culture that thrives in DeFi, as projects named after sushi, cake, yam or bakery have come exploding in popularity almost overnight. Will this interest last, that seems to be the question on everybody's mind.
When one looks at the DeFi offerings in the space - DEXes for trading, lending, insurance, stable coins, derivatives, aggregators and more, it is clear there is a serious movement towards offering up decentralized financial alternatives to traditional centralized financial services. And the numbers paint an even clearer picture. Currently the DeFi TVL (Total Volume Locked) now sits above USD 56B across the different ecosystems. Just on the Ethereum chain alone, MakerDAO, the leading decentralized USD-pegged stablecoin Dai, has a market value of USD 6.3 billion; Aave, the leading lending company has a market value of USD 5.03 and Uniswap, the leading DEX has a market value of USD 4.1 billion.
MDEX Offers Zero Transaction Fees and Fast Transactions
Circling back to how MDEX has managed to capture almost half of the DEX marketshare, besides being in a generally positive DeFi environment, Ethereum’s high gas fees on the heretofore leading DEX Uniswap have deterred many DeFi users who are beginning to look at alternatives in the DEX space.
Based on the Huobi Ecological Chain, MDEX leverages the Heco public chain to deliver low transaction fees and fast delivery times. Presently, MDEX.COM transaction fees only cost about 0.1 cents per swap, which means that 1 USDT equivalent of HT can support nearly 1,000 swaps.
Implementing both liquidity pool and transaction mining (dual mining), trading on MDEX can generally achieve zero and even negative transaction fees. This is because, excluding slippage losses, the MDX rewards generated by the MDEX platform users for trading and mining are much higher than the transaction fees required for the transactions.
In the past month, the MDEX platform has paid out almost USD 280 million in transaction mining rewards and USD 200 million in liquidity mining rewards to users.
In addition to the zero or even negative transaction fees, MDEX also boasts fast delivery times. With transaction speeds of 500 TPS on the Heco public chain, transactions on MDEX take only about 3 seconds.
MDEX is Attracting the Most Popular Projects
With a user interface designed for excellent experiences for both projects and users, zero-fee and fast transactions combined with low slippage, good depth, and high APY for transaction and liquidity mining, MDEX has been attracting an increasing number of popular DeFi projects on its platform.
With operations between Huobi Exchange and MDEX configured to be simple and user-friendly, the young DEX is also facilitating many Huobi and Heco-based projects. Huobi family assets (HBTC, HLTC, HBCH, HDOT, HFIL, wHT, HPT, HUSD), Heco projects (FILDA, LHB), and even highly sought-after DeFi projects on the Ethereum public chain (AAVE, SNX, UNI, LINK, BAL, YFI) have all started liquidity mining on the MDEX platform.
Popular projects such as BAGS (Basis Gold Share) originated on the MDEX platform. The first algorithmic stablecoin protocol on Heco, after landing on Huobi Global, BAGS’ initial price jumped from USD 20 to reach as high as USD 1,022, an increase of 51 times.
For more details about MDEX, please visit the Official Website: https://mdex.com/#/
MDEX Official Channels: