What is MCDEX?
MCDEX (MCB) is a decentralized exchange that enables perpetual contracts trading without the need for permissions. The platform utilizes AMM technology, which is positively capital efficient, resulting in low slippage and costs for traders. According to MCDEX, their AMM is over 1,000 times more efficient than standard XYK AMM for the same liquidity in the pool. Additionally, the MCDEX protocol allows anyone to create any market, leading to significant market diversification.
To ensure high protection and consensus, MCDEX utilizes decentralized Oracle services such as Chainlink and Band. However, the deviation of 0.1%~0.5% in Oracle data services due to cost considerations is not significant enough to impact the liquidation of perpetual contracts. MCDEX recommends a maintenance margin of 6.7%, and the marked price of the unchanging contract is used only to compute the contract position value, thereby specifying the liquidation price.
By using decentralized Oracle services, MCDEX can eliminate the “price manipulation issue” caused by the short-term capital fluctuations of centralized trades, leading to increased credibility for perpetual contracts. However, when a decentralized Oracle is used for AMM pricing, a significant Oracle variation results in a larger arbitrage space for AMM quotations.
The MCB token is the native token of the MCDEX platform. The community of MCDEX has published the governance token MCB and has completed a series of governance work. Additionally, the platform established MCDEX DAO based on MCB, which is the heart of the MCDEX community. The MCDEX DAO's mission is to continuously develop the MCDEX ecosystem, and the platform provides a governance incentive for MCB token holders who participate in community governance.
Liu Jie, who previously ran a mining software business, is the founder of the MCDEX platform. The total supply of MCB tokens is 2,268,644.
In conclusion, MCDEX is a decentralized exchange that enables perpetual contracts trading without the need for permissions. With the use of AMM technology and decentralized Oracle services, MCDEX provides a more efficient and credible trading experience for its users. Additionally, the MCB token and MCDEX DAO play a crucial role in developing the MCDEX ecosystem and incentivizing community governance.
The investment information, comments, and recommendations provided here do not fall under the scope of investment consulting. Therefore, making an investment decision based solely on the information and comments provided here may not yield results that meet your expectations.
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