DexMex : The Decentralized Exchange on DeFi’s Uniswap Protocol
DexMex is the first decentralized exchange to allow peers to exchange leverage for any token. Users should open long or brief leverages for any Uniswap token trading. The project is an initiative by pioneers in the DeFi sector based in Switzerland.
There are many ways in which DexMex can stand out. First, everyone can trigger an agreement on a token of their choice, whether short or long. DexMex will then not need to reward its users with any borrowed liquidity. Being a peer to peer, that is to say, that losing positions reward the winning ones automatically and constantly. You have to connect your wallet (metamask) to trade on DexMex.
Let’s dive more into DexMex to explore its uniqueness and why it stands out from other exchanges.
The DexMex token (DEXM) on the Ethèreum network is an ERC 20 token. DEXM has a total supply of 50 million tokens with 19 million tokens for presale that began at 17:00 UTC on 13 February .
Entry fees for customers taking a long or short trade are 0.8 percent on the platform. There is no extra fee after this, meaning that users can retain their positions without paying fines as long as they want.
Use cases for the token include the following:
DexMex is a protocol that is decentralized and evolves with community information. The DexMex token will be used in a decentralized way to regulate and decide on the platform growth. Each variable of the platform can be voted on and generated by the community. Such as fees or extra features.
The protocol also uses fees (0.2 percent) to buy DEXM tokens and permanently destroy them via burns automatically.
Token holders can receive the protocol fees distributed in ETH by staking DEXM (0.5 percent).
The remaining 0.2 percent of the fees go into the treasury, managed by DEXM token holders. The treasury also backs the token, while users can vote for distribution of the treasury to token holders. If the project is unsuccessful, DEXM holders will get the treasury.
Advantages of DexMex
- Fast: Deposit and withdrawal take place in seconds compared to other networks, as DexMex works for the Ethereum network. Therefore, its mechanism is very similar to Uniswap when no further trade step is necessary as the trade is carried out directly through your web wallet.
- Flexibility: on 27 February, DexMex was decentralized. The protocol is 100% decentralized so that users can open a long or short position to any Uniswap token. You don’t have to wait until your favorite token is listed on a CEX to support margin trading; you can trade with leverage immediately with DexMex.
- Liquidity: the liquidity issues do not arise from DexMex because a user’s rewards value gets determined by a ratio between short and long interests.
- No debt: All trade occurs in Ethereum; no tokens are necessary to take in a short or long position.
- Peer to peer: Losing positions finance the winning positions directly. Consequently, before leverage trade is permitted, the protocol does not have to attract many liquidity lenders.
- Timeless positions: users may hold long or short positions as long as they wish, compare them on a centralized exchange to a perpetual future agreement.
- No barriers: No KYC process or account creation is a requirement for users. As long as you have your MetaMask bag, you can trade, meaning that you still control 100% of the money.
- Low charges: There are no financing rates or secret commissions which stack up over time; DeXMex has a low trading charge of 0.8%.
Market Caps in DeFi are massive, there is a lot of space to develop for this new project. 50-100x growth is easily possible — especially with a secure, working product, a great team and community supporting it.
According to the DexMex Roadmap, the platform will become fully operational by the end of Q1 2021. The majority of trading derivatives occur on central platforms such as Binance or Bitmex. However, both trade groups have a history of system problems, limiting the ability of a user to maximize profits. DexMex merchants know that their position will not be closed or removed automatically.
It appears that once decentralized leverage trading is easily accessible, users migrate over. Through DexMex’s latest UI mapping update, more folks will likely join the train in 2021 as the masses embrace DeFi.