Project Introduction
MYX Finance is a centralized derivatives exchange that uses smart rates and risk hedging mechanisms to ensure protocol stability and provide sustainable high returns. The unique MPM mechanism (maximizing liquidity provider returns) enables users to utilize their funds more efficiently, while reducing the market risks faced by liquidity providers (LPs) and providing users with more possibilities to capture market opportunities.
Financing Background
MYX, a decentralized perpetual contract exchange incubated by D11 Labs, announced the completion of a $5 million seed round of financing with a valuation of $50 million. This round of financing was led by HongShan (formerly Sequoia China), with participation from Consensys, Hack VC, OKX Ventures, Foresight Ventures, Redpoint China, HashKey Capital and others.
Innovation Mechanism (MPM)
The MPM (Matching Pool Mechanism) mechanism is a method of adjusting the liquidity pool on a non-order book trading platform to match the positions of buyers and sellers in real time and optimize the efficiency of capital use. The following is a brief description of the core elements and operation of the MPM mechanism:
Order Type:
Buy opening: establish a long position.
Sell to close: close a long position.
Sell opening: establish a short position.
Buy to close: close a short position.
The role of liquidity pool:
The liquidity pool provides a counterparty when there is an imbalance between buyers and sellers, and reserves the corresponding collateral. For example, when Xiao Li goes long, the liquidity pool goes short and reserves collateral accordingly, and vice versa.
Funding and Market Balance:
The market-dominant party regularly pays funding fees to the other party, which helps maintain a rough balance in the long-short ratio in the market.
Risk Hedging:
In times of market imbalance, liquidity providers (LPs) may hedge their passive positions in other markets to avoid capital volatility.
Automatic Deleveraging (ADL):
When the liquidity pool capital usage reaches the upper limit, the system will automatically reduce the most profitable opposing positions to maintain market stability.
Gem System
The MYX Finance platform has also introduced a gem system, a unique user reward and incentive mechanism. Through this system, users can receive rewards based on their trading behavior and platform participation. The platform shows that this is the key to the future, which may indicate an airdrop.
Personal experience
Currently, MYX Finance operates on the ARB network and has tried to build positions and add liquidity. The overall experience is very smooth, without the roughness of launching a new product. The ceiling of exchanges that the project can log in to in the future is also very high. After all, several exchanges are investors. In terms of security, there is also the dual protection of Paidun + SlowMist.
If you do not want to participate in the high-risk business of contracts, adding LP is undoubtedly a low-risk thing, and you may be able to make both money and profit in the end.
