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What Is Mdex (MDX) Token?

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by Oluwapelumi Adejumo · 6 min read
What Is Mdex (MDX) Token?
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The guide provides details on Mdex, which is the optimal way to create cross-chain compatibility between leading chains to create a composite DEX ecosystem. Find out more about its benefits here.

Mdex (MDX) is the decentralized exchange (DEX) platform based on Heco, the Huobi exchange blockchain. It is strategically positioned as the optimal choice for eco-token transactions and the largest DeFi ecosystem with trio features, DEX, IMO, and DAO integration. It also allows a dual mining mechanism of liquidity and transactions for users. Besides, Mdex ensures a secured transaction and guaranteed liquidity process. It aims to create cross-chain compatibility between leading chains to create a composite DEX ecosystem.

History of Mdex

In late 2017, Nate Flanders and Anant Handa co-founded Mandala as a revolutionary cryptocurrency and blockchain-based digital asset exchange. It also became a catalyst for the marketplace and driver of mass adoption. According to SEC regulation guidelines, the Mandala project is developed, simplifying how digital assets are traded through a user-friendly interface. They also intended to tackle security by offering an exchange integrated hardware wallet.

The internet welcomed the Mandala Exchange project, Mdex, on January 6, 2021. It was accessible for liquidity and trading two weeks later, precisely on January 19. The Mdex project got positive reception, judging by the value of $275 million and the $521 million transaction volume in its daily liquidity. Three weeks after its launch, its daily transaction volume spiked above $1 billion.

By February, Mdex had attained new feats, with its liquidity and single-day transaction exceeding $1 billion and  $2 billion, respectively. The Boardroom mechanism was launched in that same month, and the MDEX ecological fund, worth $15 million in MDEX, was established. Towards the end of February, CoinMarketCap ranked Mdex first in global DEX rankings. It accounted for 53.48% of the global DEX trading volume. The daily transaction volume reached a whopping $5 billion.

By March, the record set was significant. Mdex TVL and the cumulative amount of burnt and repurchased MDEX token rose to $100 billion and $10 million, respectively. In that same month, the daily transaction volume, which initially stood at $2 billion in February, spiked above $2.2, with its TVL exceeding $2.3 billion. The month saw the launch of MDEX version 2.

MDEX was launched on a platform known as the Binance Smart Chain (BSC). This happened on April 8 to support the mining of single currency, assets cross-chain, trading, and liquidity mining. MDEX TVL exceeded USD 1.5 million within 2 hours of launching on BSC.

Key Tech Features of Mdex

Mdex protocol has several features that make it special.

  • Automated Market Maker  (AMM). As an Automatic Market Maker, MDEX assists organizations in building and launching applications at high speed by providing a suitable platform that supports this process.
  • Dual mining mechanism. Mdex platform operates on a dualized mining innovation that ensures a secured transaction and guarantees a liquidity process. The concept of depositing all funds enhances trading activities leading to an increase in the Automated market maker liquidity process. There is flexibility in the conversion of MDEX token coins to either other coins or cash.
  • Fundraising. Mdex platform is also used for fundraising. The Mdex IMO platform facilitates the fundraising process.
  • Cheap and fast transactions. The Mdex protocol offers fast transactions and low fees, compared to Ethereum (ETH), to integrate the “Binance smart” chain or compatibility with smart contractors. With the 2.0 version, Mdex has improved platform features. Thus, it provides users with a faster, more secured, and user-friendly platform in a liquid trading system at low or zero cost.
  • Decentralized Autonomous Organization (DAO). Mdex runs a DAO structure and uses its native token MDX to achieve governance. MDX holders can propose to initiate a token listing by voting or collateralizing. It is a DAO system with transparent rules that its members control. Participation is all-inclusive on the platform.
  • Mdex platform offers several incentive mechanisms such as LP pools, listings, and pairs. Mdex official Medium handle will keep participants updated on new pools, revised rewards mechanisms, and the latest information about the platform.
  • Trading Mining. One of the coolest features of Mdex is its unique Trading Mining option. This new trading protocol rewards users for every trade they make. These rewards help drive more trading activity on the DEX, which results in deeper liquidity and more trading options.

Mdex (MDX) Token

MDX is the cryptocurrency token of Mdex, highly valued for the uniqueness and success of the blockchains on which its project is running. The token can be mined and traded. It has a total supply of 1 billion. A block appears every 3 seconds based on the HECO chain with block rewards of 80 MDX per block. The halving happens after every six months. Out of the total token in supply, 80% of it goes to liquidity and transaction mining on Heco. Further, team rewards for operations and development account for 10%. At the same time, the remaining 10% of the token in supply is shared between users as early investors’ share to provide more sufficient funds and resources and used for market promotion and brand building, receiving 7% and 3%, respectively.

MDX Use Cases

In addition to representing the rights of holders, MDX has some practical application value. Some of its use cases include:

  • Governance. MDEX is a community-led decentralized project. In other words, the community makes major decisions affecting the project. MDX holders participate in community governance through voting to determine transaction fee ratios, review other essential rules and determine the decision to achieve via repurchase and destruction.
  • Standard Fundraising Tokens. MDX can also serve as a standard fundraising token by HT-IMO, a decentralized fundraising protocol that runs on the MDEX platform. This use case is very similar to using ETH in ICOs on the Ethereum platform.
  • Fee. MDEX charges a 0.3% transaction fee where 66% of the daily fee income is split between two parts. 30% goes to repurchase MDX and burn to increase deflation, while the remaining 70% goes to buy HT from the secondary market as well as reward users who pledge MDX. The repurchasing and burning of MDX and buying HT to airdrop to MDX pledgers take place daily with transparence.
  • Security. MDEX is entirely secure. In addition to leveraging high-end security features, the DEX is subject to audit by FAIRYPROOF, CERTIK, and SLOW MIST, the leading blockchain security audit.

Advantages of Mdex

Mdex platform is unique, performing better than SushiSwap (SUSHI) and Uniswap (UNI) in the ETH blockchain. Its users benefit from the following:

  • High transaction speed. The transaction speed of MDEX  is higher than that of Uniswap. This is because the Mdex platform design is on the Heco chain, confirming a transaction within a short time of 3 seconds. In comparison with Uniswap, which takes a longer time, Mdex does not have any delays.
  • Transaction fees are very low. Transaction worth 1000USDT on Mdex is 0.3%. It is similar to Uniswap, which charges 0.3% ($3). Mdex platform allows users to mine the amount spent as a transaction fee through mining.
  • Further, users can switch pools. The MDEX pooling system is flexible. It allows users to migrate from one pool to another.

Conclusion

Mdex is an efficient platform for digital trading, offering users speed, security, low transaction fees, and other benefits. Its multi-chains have proven to be excellent. Thus, it is the optimal way to create cross-chain compatibility between leading chains to create a composite DEX ecosystem.

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FAQ

What is Mdex?

MDEX is an automatic market-making (AMM) and DEX based on a mix-chain model on HECO (Huobi Eco-Chain) and Ethereum. It effectively leverages the wide, far-reaching Ethereum ecosystem and the low transaction fees of the HECO chain. 

Who founded Mdex?

It was co-founded in late 2017 by Nate Flanders, CEO, and Anant Handa, CSO, as a revolutionary cryptocurrency and blockchain-based digital asset exchange and a catalyst for the marketplace and driver of mass adoption. Mandala decentralized exchange was launched in 2021.

How does Mdex function?

Mdex is a multi-chains platform. It offers a decentralized exchange service, enabling users to trade and mine.

What are the key components of Mdex network?

Mdex key components are automated market maker, dual mining mechanism, decentralized autonomous organization, reward incentives, a fundraising platform, trading mining, cheaper and faster transactions.

What are the main use cases of Mdex?

MDX token is used for trading and fundraising. It is also used to compensate its holders. 

What is Mdex token?

MDX is a cryptocurrency token of Mandala decentralized exchange, which utilizes multi-chains on its platform. You buy, trade MDX token, and also earn a reward for holding it. 

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