07 Sep 202019:08
Impossible Finance AMA Recap
Myko (CryptoDiffer)Hello, everyone!😁
We are glad to meet here:
Jean Miao, cofounder of MCDEX
Jean MiaoHi everyone! Thanks for having me!
Myko (CryptoDiffer)Welcome Jean, thank you for taking your time today!
Our team has prepared 3 questions for you to start with
Jean Miaosounds good!
let's start with the introduction
Q1: Can you introduce yourself to our community?
Jean MiaoLove to do that. I'm Jean Miao, the Co-Founder of MCDEX, is a serial entrepreneur who comes to crypto off of work in internet technology.
Having traded crypto and been involved in the blockchain space for years,
specifically crypto derivatives
And then I'm natually in MCDEX team to build a non-custodial and transparent way of trading derivatives:)
Myko (CryptoDiffer)thanks for an answer!
let's move to the project
Q2: Can you introduce MCDEX to us?
Jean MiaoSure! MCDEX is the first fully-permissionless dex for trading perpetual contracts that is capital-efficient with top market liquidity and up to 20x leverage.
The decentralized perpetual contract trading platform, powered by AMM, allows anyone to create a contract.
Perpetual contracts are one of the most popular derivatives, as they have no expiration date, support margin trading, and the prices are soft-pegged to index prices.
Now, with MCDEX, anyone can trade perpetual contracts permissionlessly.
We've gone live on Testnet, mcdex.io
Feel free to play with it:)
one last question from us!
Q3: There are many derivatives projects in the Defi space. How MCDex differentiate itself from its competitors?
Jean MiaoGood question!
The perpetual track actually is quite trending recently. We’ve got more than 10 competitors already.
I can share a bit on how MCDEX is differentiated from them - anyone can create any perpetual market with different risk preferences.
This is crucial because when a new DEX born, one of the key competencies is to have some markets that other exchanges don’t have yet. So permissionless is the key. We are empowering individuals/institutions to create market diversification on MCDEX.
Besides,we’ve been working hard on the innovations on AMM,
which we believe is a hardcore competency.
Whether liquidity providers can make money and whether the slippage is small enough to trade all depend on AMM pricing formula.
The V3 AMM will be 1000 times better than our V2in terms of capital efficiency; will balance the LP’s profits and risks in a reasonable way. With proper incentive, we will be able to attract funds in the AMM pool to generate decent liquidity for traders.
In a word, V3 solve some blockers for user adoptions of DEX - Liquidity and Marekt diversification.
Cryptodiffer CommunityQ1. Liquidity should be the first principle of any financial financial product if it really wants to continue to remain in business. To what extent is MCDEX focusing on how to improve liquidity and high capital efficiency, which leads to low slippage for traders, and lower cost to provide liquidity?
Q2. Kindly explain to us how determined are you to solving the Liquidity problem and some of the steps you are currently taking to help you achieve it?
Jean MiaoI would love to take this one first.
about liquidity issue, which is indeed a pain point for traders
THe goal of our V3 AMM is to sove this problem. The general idea is actually similar to Uniswap V3 - aggregate more liquidity around the index.
So that we could ultilize more funds in the pool to provide liquidity instead of funds just staying there and doing nothing.
We've been testing on the testnet for a long time.
The tests prove that the spread on our V3 and liquiidty around index is about similar on centralized exchagnes.For long tail markets, could be even be better if with proper incentives.
That's how we solve the problem - use incentives and returns to attract LP and then make full use of the LP funds to provide liquidity.
Cryptodiffer CommunityI learnt that Liu Jie is the founder of MCDX. How was the idea for the project conceived and can you explain what "PERPETUAL SWAP" means in your project ?
Jean MiaoLove to take this one!
Before DeFi, Our team was building a GPU mining platform and was trying to use derivatives to hedge some risks. And we realize that it's hard to build trust between us and counterparties.
And then we got to know the smart contract, which perfectly solve the problem.
Then we start to think about building a derivatives platfrom in in DeFi, which at that time was blank in the space.
And we also noticed that derivatives in centralized space has crazy volumes, like billions of dollars per day. Thai is tasty business
We’d love to take a shot ;)
Perpetual swaps is the most popular way of trading cryptocurrency, since people can bet on the price trend with leverage and without taking custody of it
This is easy to understand for general users
And a powerful tool
So it’s quite popular
Cryptodiffer CommunityYou define MCDEX as the first fully-permissionless dex for trading perpetual contracts that is capital-efficient with top market liquidity and up to 20x leverage. What benefits does MCDEX derives from being fully permissionless as compared to traditional way of adding market which requires permission?
Jean MiaoThe 3rd one
Permissionless is a unique feature of DeFi.
Let’s recap how uniswap booms last summer
Uniswap actually has been running for a couple of months and with little trading volume.
But one day in last summer, I remembered that one day, the token AMPL occupied almost half of the total trading volume. That is because no other exchanges has this trending coin yet
So uniswap is taking the advantage of being the only platform to trade this coin
I believe this is how a DEX gain volume in the innitial stage
So we need to have some markets that is unique
By being Permissionless, we are shifting the power of creating perp market to the community
Being Permissionless makes it fast amd creative
So that’s why we take this approach
And we see that some other competitors are following us on this path
Cryptodiffer CommunityQ. Congratulations on the success of the MCDEX V3 mainnet Which is live on Arbitrum mainnet. Firstly, why did you choose Arbitrum? and what are some of the inefficiencies of V2 which you intend to address with the evolution into V3?
Jean MiaoThe 4th one
When choosing Layer 2 solutions
There are several points that we evaluate- product readiness, developer friendly, decentralization, gas fee and performance
That leaves us optimistic rollup and zk rollup, these two solutions
Honestly which one ca be ready first, we will tend to use which one
For now, arbitrum seems so.
Regarding V2 transition to V3, there are two big upgrades:
1. Permissionless, V2 is not
I’ve touched upon the reason
2. Capital efficiency
Capital efficiency of V3 is 1000 times better than V2
Which is to solve the liquidity problem
These two are key lessons and learns from V2.
Since our V2 is a hybrid model of both AMM and order book
By running both, we realized that AMM is powerful because it can crowdfund liquidity
It has lower cost to provide better liquidity
So In V3, we are quite clear that we should focus on the upgrade of V3
Crowdfund the liquidity and make full use of it
Cryptodiffer CommunityCould you give us feature of MCDEX tokens? What is it's Tokennomics and how many exchange has been listed on?
Jean Miao5th one
I will first elaborate on the utility
The utility of Token is gradually increasing to better align with the needs of our business model.
Stage 1: Governance Token
As mentioned, $MCB holder will govern the MCDEX DAO, deciding how to use the assets gathered by DAO vault, whether to distribute the issed MCB and how to distribute them. This is the most important utility of $MCB.
Stage 2: Adding more utilities to $MCB for example, for traders can use it as transaction fee just like what FTX, binance do. Or Operators, the creator of the market need to stake $MCB to create the market, etc.
2. About token issuance
Tokens are issued volume based
0.015% of trading volume will go to MCDEX Vault
Whenever Vault capture $1, one more $MCB can be issued
So this can align the interests of community, team and investors
Cryptodiffer CommunityWhat kind of expectations should we have from MCDEX in the near future? (Any event/update)
Jean Miao6th one
So I’m the near future, with the readiness of layer 2 solution, we will officially launch our V3.
This will be the biggest milestone
Then we will also enable liquidity mining program, transaction mining program, referral program, ambassador program, to ultilize all the resources to reach certain trading volume.
Cryptodiffer CommunityWill MCDEX Exchange in the future compete or be the best compared to Binance DEX?
Jean Miao7th one
For the long term goal, is to eat centralized exchange for sure
Because DEX is def offering a better solution here - non custodial, transparent, and fair
Since in centralized exchange, your true counterparty is the centralized exchange, instead of another trader
This is an unfair game
More and more people are realizing it
And gradually shifting to DEX
With the user experience improvements of DEX, this is the future.
Cryptodiffer CommunityDid you raise funds so far? If so, How did you handle them? Are you planning to do any future raises?
Jean Miao8th one
Yes we have finished a round a couple of months ago
And one thing to emphasize is that the tokens For investors are also volume based vesting
All the funds go to MCDEX DAO
And all holder can decide how to use the funds
For now we don’t have further plans of fundraising
Will keep the community posted
Thank you for a nice ama
it was a pleasure!