Introduction, MCDEX, Understanding the Decentralized Exchange.
Investors wishing to invest their money have several possibilities. For example, we observe a large number of people putting their money into traditional assets like precious metals, equities, or bonds. However, contemporary types of investing, such as cryptocurrency, are gaining popularity. You may only think of these coins when you think of the blockchain. However, there are many more investment options that use blockchain technology. Consider NFTs with perpetual contracts, for example.
Perhaps you are unfamiliar with perpetual contracts. In any event, they are available for trading on the decentralized market of MCDEX. In fact, you may establish perpetual contract markets here and generate passive revenue by supplying liquidity.
Contracts that last indefinitely
On its website, MCDEX claims to be the first fully-permissionless DEX for trading perpetual contracts. But what exactly does this mean?
Perpetual contracts are futures contracts with no expiration date. A future normally has an end date. A future is a financial trading instrument that is a derivative between two parties. These parties agree that the underlying product (in this example, a cryptocurrency) may be traded at a specified price on a predetermined date by the owner of the futures. However, there is no expiration date in the case of perpetual contracts, and the contract owner can always exchange the underlying goods for this price.
Why is that relevant now? You can make money with a cryptocurrency if you have the right to exchange it for a lower price than its present worth. If you believe the price of a cryptocurrency will grow further, you might acquire a futures contract that provides you the opportunity to buy the cryptocurrency at a cheaper price. This will ultimately boost the worth of the future. This makes investing in these sorts of items appealing.
MCDEX's mission and vision
The first entirely permissionless DEX for exchanging perpetual contracts. This quickly conveys a great deal about its goal and vision. They want to make perpetual contract trading available to everyone. On its exchange, no one has more rights than others. Everyone may offer liquidity and collateral for perpetual contracts at the same time. The benefits available with this are the same for everyone.
Who established MCDEX?
MCDEX was founded by Liu Jie. Liu has previously obtained development skills at organizations such as Baidu, a Chinese internet behemoth. Here, he created distributed systems and databases like Doris. He was also working on mining software dubbed Minerbabe at the time. This experience was extremely beneficial to him since it allowed him to build MCDEX. And he was pretty successful.
Of course, Liu Jie is not alone in all of this. Next to him are several more developers who contribute to the development of MCDEX. They work together to ensure that everyone may exchange perpetual contracts on the blockchain without being restricted.
In 2019, the first version of MCDEX was released. It quickly became clear that this version did not yet match the criteria and specifications established by its team. As a result, work proceeded, and the platform’s second edition was released in 2020. This version, too, was insufficient. The platform’s liquidity concerns cost MCDEX a lot of money. And this is the most critical aspect of a well-running DEX. A third version was being worked on by the team. The fourth edition of the platform was already released in September 2022.
Investors
It has also attracted a huge number of investors in recent years. Among these investors are companies like Delphi Digital, Alameda Research, and Multicoin Capital. It has collected more than $1 million from the community in addition to more than $6 million from large investors in 2021.
MCDEX's token is MCB.
MCDEX, like every other crypto project, has its own coin. This is the MCB token, which is used for a variety of purposes on the site. The total and maximum quantity of MCB tokens is 10 billion. However, not every token is currently in use. It intends to issue an increasing number of tokens in the following years. This can lead supply to rise compared to demand (assuming demand does not rise relative to supply). At the time of writing, September 2022, 1.9 billion MCB tokens were in circulation, accounting for around 19% of the entire quantity.
Its team has decided how the MCB tokens will be divided, and it is as follows:
Developers number 484,000, consultants number 75,000, and investors number 109,000.
Private token sale: 332,000 (tokens sold for 2.5 USD each MCB token);
Other items for public sale.
So, how do the remaining tokens enter circulation? Its team has created a useful algorithm for this. The amount of daily trading activity determines the quantity of tokens placed into circulation. This algorithm appears to be as follows:
Is the daily trade volume less than $8.7 million? Then the daily issuance is 1,300 MCB, and investors receive 0 MCB; daily trading volume of $8.7 million to $10 million? The daily issuance is thus 1,500 MCB, and investors receive 150 MCB; daily trading volume between $10 million and $46 million? Then the daily issuance will be 6,000 MCB, with investors receiving 3,525 MCB; daily trading volume more than $46 million? The daily issuance is then 6,900 MCB, and investors get 4,200 MCB.
Where can I get MCDEX (MCB)?
Unfortunately, purchasing MCB tokens might be difficult at times. Fortunately, there are several exchangers that allow you to sell MCB.
Do you wish to purchase MCDEX (MCB)? Then go to FTX, BKEX, Uniswap, PancakeSwap, and LBank.
What are the advantages of MCDEX?
Everyone should have perpetual contracts. Trading perpetual contracts or establishing markets for these perpetual contracts might be tricky at times. MCDEX, on the other hand, assures that there are no limits and that anybody may set up such a market. This decentralizes the sector slightly.
Make money while you sleep. You may make a passive income by providing liquidity to the MCDEX protocol. The type of token and the quantity of tokens you lend decide your payout.
Transaction costs are low. Users pay cheap fees and do not have to wait long for their transactions to be completed since it works on Binance Smart Chain and Arbitrum.
Orders differ. You have access to several capabilities that are generally only available on central exchanges. Consider stop-loss and limit orders, which are unique to a decentralized exchange.
There is no slipping. Users do not need to be concerned with slippage because they may trade cryptocurrency without it!
What are the drawbacks of MCDEX?
MCDEX is based on smart contracts. This assures that the platform operates decentralizedly, but it can also generate issues. Everything is pre-programmed and automated. When anything goes wrong, it is nearly hard to undo. As a result, utilizing it is always dangerous, and you may lose your investment.
There is little to no regulation. There are no bodies that control MCDEX, therefore you can’t be confident whether the platform’s crew is following the regulations. In reality, there are no clear regulations at all. Investing in it is always dangerous because of this.
Conclusion
MCDEX is a decentralized exchange that is powered by Arbitrum (and so Ethereum) and the Binance Smart Chain. However, MCDEX is primarily an exchange where you may trade perpetual contracts and create markets for this sort of derivative. Perpetual contracts are cryptocurrency futures with no expiration date. Many cryptocurrency traders deal in these sorts of contracts, yet it is tough to create your own market. That is no longer the case with MCDEX.
Everyone has the ability to build up a perpetual contract market. You can contribute your own liquidity for this, but you can also receive liquidity from others. In order to be traded, futures must have collateral. You may earn a lot of money if you opt to supply liquidity to a perpetual contract market on MCDEX. The value of this award is determined in part by the quantity of tokens bet. In any event, it is an excellent approach to get passive income from cryptocurrency.
Also, read the other articles