MCDEX Officially launches its Perpetual Contracts with up to 10x leverage

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MCDEX — where DeFi Meets Perpetuals

Since its inception, perpetual contracts have become one of the most popular ways of trading cryptocurrencies, attaining trading volumes more than twice as that of the spot market. However, the current centralized approach lacks transparency. A decentralized approach will provide a trustless and transparent way to trade perpetual contracts. We are thrilled to officially launch the first decentralized ETH perpetual contract today.

The financial architecture of our perpetual contract is based on the proven design of perpetual contracts in the CeFi space, along with these following features:

1) no expiration date.

2) trading price soft pegged to the index price by funding rate mechanism.

3) On-chain funding rate by introducing AMM.

4) Off-chain order book providing better liquidity.

The most unique and innovative part about our ETH-PERP contract is the introduction of the AMM (Automated Market Maker), which generates the funding rate, provides on-chain liquidity, and ensures complete decentralization. The AMM acts as a money lego for smart contracts to trade with our on-chain perpetual contracts, enabling them to arbitrage, speculate, and manage their portfolios.

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UI of the Exchange

Since the AMM has higher slippage than traditional CeFi exchanges, we have also introduced an off-chain order book for liquidity-sensitive users. The order book, which provides better liquidity than the AMM, is used as the main entry point for trading perpetual contracts. We recommend users to trade with the order book, and smart contracts to trade using the AMM. Here are some specifications for our perpetual contract:

Trading pair: ETH-PERP

Leverage: up to 10x

Transaction fee: Maker = -0.025%, Taker = 0.075%

Funding rate: up to 0.4%

Initial Margin: 10%

Maintenance Margin: 7.5%

For more detailed information, please refer to References.

Security

Being a product in the decentralized finance space based on smart contracts, the security of our ecosystem is our top priority. We have fully tested our MCDEX perpetual contract code and achieved 100% test coverage for all possible code branches.

MCDEX has also partnered with the industry’s best security teams to conduct a comprehensive audit of MCDEX’s smart contracts. The security audits of MCDEX’s Mai Protocol V2 used for implementing perpetual contracts are done by OpenZeppelin and ConSensys Diligence.

Decentralizing perpetual contracts is relatively complex, and requires comprehensive measures to safeguard against potential harm or issues. Our main focus is to continue working on security measures, including software security, global settlement mechanisms, oracle security, risks assessment, etc.

MCB Token

To ensure MCDEX becomes a truly DeFi platform, both the software and the governance should be fully decentralized. In order to better implement decentralized governance, we plan to issue a platform token — the MCB. The MCB token will allow key stakeholders of the MCDEX platform, i.e takers, liquidity providers, contributors of trading strategies, DeFi developers, etc, to participate in the governance to achieve sustainable and robust development.

MCB token will be used for capturing the platform’s value, for providing liquidity to the AMM, and for taking the risk of liquidation and/or enjoying its benefits. The functionality and use-case of the MCB token will gradually expand thereby increasing the liquidity of the MCB tokens. Regarding the distribution, 25% of MCB tokens will be allocated to the team and initial investors, 25% will be allocated to the foundation for token sales, and the remaining 50% will be used as incentives for the stakeholders.

MCFund Product

MCDEX is on a mission to make investing in perpetual contracts easier by building a secure and easy-to-use decentralized financial platform on the Ethereum blockchain. Our first product is a fully decentralized perpetual contract, which is the main base asset for building our financial services. Its working mechanism can be completely decoupled from any off-chain logic, providing the opportunity to build decentralized, structured financial services to meet the needs of investors with varying risk appetites.

One of these services is the MCFund: built for investors lacking the knowledge to trade perpetual contracts; MCFund simplifies the process by enabling users to invest by depositing their assets in the fund. Bots and social traders will act as fund managers by providing trading strategies. In this way, MCDEX provides a platform for traders with varying risk appetites and trading acumen with a common goal to make profits.

Please refer to MCDEX’s Whitepaper for more details.

Liquidity Mining

We will use a part of the MCB tokens to incentivize users to invest in the funds, thereby increasing the platform’s liquidity. When users deposit assets in the fund, they become fundholders and receive MCB tokens (Liquidity Mining). The amount of MCB mined per day is fixed, and MCB tokens are distributed to the funds based on their net asset value. Better performance of the fund along with faster growth of its net asset value will encourage users to mine more. Besides, the social traders will receive MCB tokens from their funds’ mining reward.

Roadmap

The launch of our perpetual contract (ETH-PERP)

The launch of our automated and social trading products

The MCB Token Sale (First Round)

Adding Liquidity Mining

New AMM formula for perpetual contracts

MCB for AMM liquidity incentive

MCB for on-chain governance

MCB capturing platform fees

Launching Decentralized leveraged tokens

IDO (Initial DEX Offering)

Enhancement of MCB.

  • Use of MCB to provide liquidity for AMM
  • Use of MCB to cover social losses
  • Use of MCB to capture liquidation penalties

Introducing an optimistic roll-up mechanism to improve trading performance.

Introducing more types of financial assets to the MCDEX platform.

Get MCB From Trading competition

To celebrate the launch of our ETH-PERP smart contract, we are holding a trading competition with prizes up to $2500 + 2500 MCB. The competition will begin on June 29th, 2020 from 13:00 UTC, and will close on July 13, 2020, at 13:00 UTC.

For detailed rules please refer to this page.

About MCDEX

MCDEX is a decentralized derivatives exchange. Our main product currently available on the MCDEX platform is our fully Decentralized Perpetual Contract on Ethereum (ETH-PERP). MCDEX was founded by Liu Jie, the former architect of Baidu.

Our Affiliate Program

For users who sign up on MCDEX via your invite link, connect their wallet, and trade — you earn 50% of their transaction fees, valid for a lifetime. If your invited users also become our affiliates, you earn an extra 10% of their transaction fee, valid for a lifetime.

Be our business partner, sign up for the affiliate program,

Connect With Us

Website: https://mcdex.io

GitHub: https://github.com/mcdexio

Twitter: https://twitter.com/montecarlodex

Medium: https://medium.com/@MonteCarloDEX

Reference: https://mcdex.io/references/#/

Telegram Group: https://t.me/MCDEX

SubReddit: https://www.reddit.com/r/MCDEX

LinkedIn: https://www.linkedin.com/company/mcdex

Written by

Building MCDEX V3 (Decentralized Perpetual) | Trade #PerpetualContracts - $ETH $LINK $SNX $COMP $LEND

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