MXC Exchange Brings Impermanent Loss Compensation for DeFi Mining

UTC by Bhushan Akolkar · 3 min read
MXC Exchange Brings Impermanent Loss Compensation for DeFi Mining
Photo: Depositphotos

The MXC Exchange presents the first-of-its-kind liquidity mining product EQL that offers a loss compensation facility to users for staking their investments in the DeFi space. This product will set a new precedence for offering merit-oriented investment services to DeFi market investors.

On Wednesday, October 7, the world’s leading digital assets trading platform MXC Exchange announced its new DeFi mining product in the market. In an industry-first move, the EQL DeFi mining product by MXC offers impermanent loss compensation for all its users.

MXC Exchange notes its new product will help in pushing innovation in the DeFi space which is still in its nascent stage. The DeFi market popularity surged massively during the summer of 2020 with DeFi tokens skyrocketing to new highs. The DeFi market, which is currently underway through a major correction, remained a top choice of investors.  Some of the projects in decentralized finance (DeFi) bring very promising use-cases to the future of the financial world.

The MXC Exchange also sees a massive potential and merit in the DeFi space. Its EQL DeFi mining product received an overwhelming market response clocking 1,000 ETH hard cap within 30 seconds. MXC Exchange notes that its unique offering of impermanent loss compensation fueled investors’ interest.  It shows that Ethereum still remains the primary base for DeFi products and services. MXC Exchange Global Operations Director Alex adds:

“The launch of EQL DeFi mining is something we have been working on behind the scenes for a while. We are especially proud to become the first to offer impermanent loss compensation to all of our participating users, which can bring our users unprecedented peace of mind while engaging in DeFi-related activities. At MXC, we will continue to provide valuable services and products related to decentralized finance over the coming months.”

Understanding EQL Liquidity Mining and Loss Compensation

All ETH holders can participate in EQL liquidity mining by locking the ETH in smart contracts. The base standard is 0.05 ETH while the hard cap is 1,000 ETH. Also, the minimum locking period is only 5 days and the token unlock automatically after the maturity period. Users can expect an annual yield of 100% with a minimum threshold of 20% with yield returns either in EQL or ETH assets.

The major value proposition of the EQL DeFi mining product is its handling of minimizing the losses. In case the project suffers a significant drop in value, investors won’t lose their initial funds. Here, the MXC Exchange will use its standby fund to offset the profits and even cover any outstanding losses. It is for the first time that any cryptocurrency exchange is offering this service and such a high layer of security to investors.

The MXC Exchange is confident that with the successful launch of its EQL DeFi product, the demand for impermanent loss compensation will gather steam in the DeFi markets. It noted:

“Exchanges need to push the boundaries of integrating or creating decentralized finance solutions. EQL serves as an interesting example of what can be achieved in this relatively new industry”.

The MXC Exchange started in April 2018 as a digital assets trading platform. In the last two years, it has established a strong footprint in services like margin trading, spot trading, derivatives trading, leveraged ETFs, and staking services.

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Bhushan Akolkar

Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

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