By Liu Jie, Founder of MCDEX
We are thrilled to announce that MCDEX V2 — Perpetual Contract is live now! PERP is supported by Mai2 protocol based on Ethereum. At present, the ETH-PERP contract is available for trading here.
As the first-ever project that has enabled a fully decentralized PERP, we are humbly inviting whales/criticizers/researchers/users to play with it and give us valuable feedback.
What MCDEX is aiming to achieve?
MCDEX is our team’s first endeavor to DeFi and we are aiming to make MCDEX a top exchange that can provide quality service and a world-class experience to traders. DeFi is a promising field that demands teams like ours to work hard and smart.
We believe that ecosystem is driven by market demand. Although blockchain infrastructure is still inefficient, we want to build a practical application that users need first. We need to understand what market really wants during the process of operation. Technology is all about compromise, you can never know what features to keep and what to discard unless you know exactly what the users care about. It all starts with building a useful application. And then our strategy for the next phase will be to improve the infrastructure.
In MCDEX V2, we’ve achieved the on-chain design of PERP, with the order book running off-chain to improve efficiency. Users can choose to trade with AMM, which is fully decentralized, simple and intuitive, or with the order book, similar to what we see in centralized PERP contracts, like bitmex and deribit.
We welcome market makers and quantitative traders to join our ecosystem. Market makers can participate in arbitrage and market-making by providing liquidity to AMM, or in a manner similar to CeFi through the order book.
Our V2 Contract is based on the Mai2 Protocol. The smart contract is undergoing audit. The source code is here.
Features of Mai2 Protocol:
1. Manage Perpetual margin accounts.
2. Trade with counter-parties and manage positions.
3. Trade with AMM and add/remove liquidity.
4. The Funding Rate is calculated by AMM.
5. Funding payment between longs and shorts.
6. Validate users’ orders and execute the match result of the order book engine.
7. Liquidate the positions whose margin fraction is less than its maintenance margin.
8. Leverage the insurance fund to liquidate accounts when in danger of bankruptcy.
9. Socialize the loss when the Insurance fund is inadequate.
10. Global settlement if there is an emergency to keep the users’ assets safe.
Refer to https://mcdex.io for details.
We are pleased to see Mai 2 Protocol as a building block of the DeFi Lego that could be integrated into the entire DeFi ecosystem. The AMM smart contract provides complete on-chain liquidity. Other smart contracts can create perpetual contract positions by calling AMM smart contracts to hedge, arbitrage, and fulfill investment portfolios.
Up to now, 2020 is tough. But we’ll still deliver the following plans:
- Designing AMM’s pricing formula for perpetual contracts to improve capital efficiency and low slippage.
- Developing mobile products and work closely with more wallets.
- BTC-PERP. MCDEX will launch the BTC perpetual contract soon. Before launching the contract, we will discuss the MCDEX BTC-PERP with our community, investors, users, and other stakeholders. Join our community here
4. Introducing solutions to improve transaction performance by 10 times. The blockchain infrastructure is constantly improving, and new technologies are constantly emerging. Based on our understanding of the MCDEX business, we will introduce suitable infrastructural technologies to greatly improve the transaction performance of MCDEX by 10 times.
5. Security is our top priority. We’ve set up a global settlement committee during extreme situations to deal with the volatility of the market and attacks. The power of the admins, which is enabled by the global settlement, will be given to the governance committee, who can decide when to start a global settlement and the detailed rules of it. The committee will be community-led. We will gradually move the governance responsibility to the committee, who are stakeholders of MCDEX, like active uses, the market-making team, early investors, etc. Detailed regulations will be shared soon.Stay tuned here.
2020 will be a magnification year for MCDEX. We are embracing the dramatic change of DeFi and hope that DeFi can be mainstream with the endeavor of the DeFi community.