Over the last few years, the DeFi boom has taken the finance industry by storm. This is demonstrated by the shift in Total Value Locked (TVL) in DeFi protocols. Not just that, TVL also reached its peak of $100 billion at the beginning of 2021. As such, a lot of decentralised exchanges have come up with unique value propositions.
One such decentralised exchange is Mdex. It is committed to building a DeFi platform that is a one-stop solution for liquidity services, staking, swapping, mining, etc. Moreover, it offers highly efficient and cost-effective services. Let us know what Mdex is and what it has to offer!
What Is Mdex (MDX)?
Mdex is the abbreviation of Mandala Exchange, which is a decentralised exchange platform. It aims to integrate the useful features of different chains and create a high-performance decentralised Defi ecology. This ecology aims to integrate a decentralised exchange (DEX), an Initial Model Offering (IMO), and a Decentralised autonomous organisation (DAO).
It has been installed on the Binance Smart Chain (BSC) and the Huobi Eco Chain (HECO). However, users can use the MDEX Bridge to make cross-chain transactions on BSC, HECO and Ethereum. Moreover, Mdex provides a one-stop solution for liquidity services. It uses a unique automated market maker to maintain liquidity.
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These liquidity services are used for high-quality assets. As such, it provides users with safe, reliable, diversified, and cost-effective transactions. Not just that, the total value locked on the platform ranked top on DEX ranking from CoinMarketCap and CoinGecko. It aims to expand its applications and lower barriers to financial services.
The platform aims to enable fair pricing of assets with no-arbitrage. It also aims to enable instant settlement (within 3 seconds) of transactions and free flow of values. Over time, the platform plans to support Ethereum layer 2 networks, OKExChain, DOT, NEAR etc. Therefore, building a fast, highly efficient, and low-cost decentralised exchange platform for cross-chain transactions.
The Mandala Genesis Story
Mdex was first launched on the Huobi Eco Chain (HECO) on 9th January 2021. Huobi is a Bitcoin exchange company that started in 2013. Huobi Eco Chain is the blockchain developed by Huobi on the Ethereum Virtual Machine. It is an efficient and low-cost blockchain geared for developers.
On 19th January, Mdex launched its dual mining mechanism. This mechanism offered mining as well as transaction rewards. These rewards attracted users and liquidity. This liquidity ensured all transactions were completed which gave Mdex credibility.
Mdex Developmental History
- Launch of Boardroom: The launch of the Boardroom took place on 3rd February 2021. It gave MDX holders special rights. MDX holders can participate in governance and get long-term profits. Moreover, the boardroom also provides open and transparent data for everyone to see. This ensures that Mdex has a truly decentralised governance structure. Furthermore, the boardroom maintains a record of the repurchase and burn mechanism. It has the record of to be repurchased tokens, repurchased price, and total repurchased tokens. It also has a record of total MDX tokens burnt.
- Repurchase and Burn program: The boardroom implemented its repurchase and burn program on 6th February 2021. The transaction fee was 0.3% of the transaction volume. According to the program, 0.1% of this was to be used for ecological developmental projects, 0.14% for rewards for users who pledge MDX to the Boardroom and 0.06% was to be used to repurchase MDX and burn it. Furthermore, Mdex puts this proportion of daily platform income for repurchasing every day. The Boardroom automatically destroys MDX when the repurchase price is hit. Otherwise, it keeps on accumulating MDX for future use.
- Binance Smart Chain: The MDX platform integrated with BSC in April 2021. Then, it expanded its services by offering cross-chain services between HECO and BSC. The Total Value Locked on Mdex reached 3rd in the BSC ecosystem within one month of its launch on BSC.
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- IMO Support: IMO stands for Initial Mdex Offering. It is an initial decentralised exchange mechanism. It is the preferred choice of millions of developers to launch their projects. This is because it provides an ample amount of liquidity for projects. This also allows users to participate fairly. This enables Mdex to provide quality assets for users. IMO was officially launched by Mdex on 15th May 2021. Moreover, the first project launched under IMO was Demeter on September 13th. It saw a footfall of 6,500 participants and raised a total of $350 million.
- Repurchase Plan: Following the launch of IMO, Mdex launched an innovative repurchase plan on May 25, 2021. The plan is called a burning black hole. It was a campaign that allowed users to submit their MDX tokens for burning in return for some reward. This increased the participation of MDX users. It also reduced the circulation of MDX tokens which increased the price stability.
- Halving: Mdex first halved its rewards on June 5. This was after just 138 days of operation. It reduced the daily supply from 4.6 million to 2.3 million. The new production cut cycle has been reduced to 90 days. This has accelerated the deflationary process on the platform. The total supply of MDX will be below 458 million on 9th February 2026. This will be after the 20th production cut. This coupled with the repurchase and burn model has the potential to form its long-term price stability.
Mdex’s Ecosystem Incentives
The Mdex has a dual mining mechanism. It provides rewards for liquidity mining and transaction mining. This provides users with rewards with every transaction while providing liquidity to the platform. In addition to the two, Mdex also has a boardroom staking incentive. The three of them are discussed below:
- Boardroom staking incentive: Users are allowed to stake their Mdex token in the Boardroom. It is compensated with MDX token rewards. Users can stake with as low as one MDX token. Not just that, the platform also allows users to stake tokens from other platforms. For example, the HT token and the BNB token. Interestingly, Mdex is planning to expand the list!
- Transaction mining incentive: Just like mining, transaction mining gives you rewards on every transaction. This is meant to subsidise users with needs. Moreover, the Centralised exchange charges a fee of about 0.2% per transaction. Whereas, the transaction fee on Mdex is as low as $0.1. This is reduced further by the transaction mining income.
- Liquidity mining incentive: The size of the transaction in the Automated Market Maker (AMM) mechanism depends on liquidity providers. As such, Mdex gives ample mining incentives to liquidity providers. Mdex has spent $455 million on transaction fee subsidies as of June 2021. This has made Mdex the cheapest decentralised exchange.
Mdex Ecology Fund
The ecosystems for blockchain and DeFi are to be developed by The Ecology Fund. In addition, it also aims to expand the Mdex ecosystem while managing its resources. The fund will have a long-term impact on how the platform and the blockchain industry as a whole develop.
The fund’s objective is to support the steady advancement of decentralised apps.
As such, it provides the underlying blockchain infrastructure and ecosystem component for DeFi projects. It also provides support in the form of technical support, market operation resources and security audits.
The MDX Token: A Snapshot
The MDX token is the native token of the Mdex ecosystem. The total supply of the MDX token is capped at 1 billion. Ten percent of this supply is used for team rewards for operations, technical research and development. Seven per cent of the supply is used to reward early investors and three per cent for marketing.
The MDX token is used as a reward for transaction and liquidity mining. It is also used as a reward for staking it in the boardroom. Furthermore, the MDX token is also used for transactions on the network. Owning an MDX token gives the owner governance rights as well.
MDX Price Prediction
At the time of writing the MDX token was trading at $0.08273. Furthermore, according to crypto news, in the next 6 months, MDX will be in the range of $0.34 to $0.40. However, it may cross this range. This is because Mdex developers have hinted at future improvements on the platform.
PricePrediciton.net estimated that MDX would trade around $0.16 in 2023 and may reach $1.97 by 2030. Digital coin forecasts that MDX will average $0.11 in 2022, $0.19 in 2027, and may reach $0.34 in 2029.
Furthermore, Trading Beast forecasts that the MDX token would trade at $0.18 in a year and jump to $0.35 by 2030. The Price Prediction estimates that MDX will be around $0.34 in 2025, up from $0.11 in 2022, and will rise to $0.97 by 2028 and $1.97 by 2030. Before you buy MDX, keep in mind that these are just predictions and not absolutes.
The Mandala Exchange is a decentralised exchange for swapping, lending, and trading. It is hosted on HECO and BSC. It aims to use a multichain infrastructure to power strong DeFi ecology. As such, it aims to integrate DAO, IMO, and DEX capabilities into its ecology. It will soon contain DeFi services like options contracts, financing, futures contracts, insurance, and so on.
Furthermore, the platform provides the cheapest transaction fee. Which in turn is compensated by mining and transaction rewards. It also used an active burning scheme that puts deflationary pressure on the token. The platform offers high liquidity even for assets that are high risk.
The platform’s native token is known as MDX token. It is used to pay for transactions and is used as a reward. Moreover, the token also gives users governance power. Knowing what you know now about the MDX token, We are sure you are wondering, “How to buy Mdex (MDX)?”. Now, you can buy the MDX token with Zebpay.