In high odds gameplay, the battle between 'chain rush' and 'leveraged futures' has never ceased. Only children make choices; adults want them all! MYX's next step is to create 'permissionless issuance' of on-chain asset perpetual futures, casually issuing like Pump. The possible future path for on-chain Alpha is:
Pump Launch → MYX On-chain Perpetual Futures → CEX.
Currently, @MYX_Finance has completed a perpetual futures DEX based on the innovative MPM-AMM model, and the MYX ecosystem is rapidly rising on the BSC chain... ➤ Understanding the innovative MPM-AMM market-making model of MYX must start with the MPM-AMM model, as this is a significant innovation for MYX, differing from various previous DEX models. MPM stands for Matching Pool Mechanism, and AMM stands for Automated Market Maker, which requires no further explanation. By comparing with Hyperliquid and GMX, we can better understand the innovations and advantages of the MPM-AMM model.
❚ MYX vs Hyperliquid
Hyperliquid uses an order book model, where traders open or close positions, and the counterparties are mainly other traders. Its market maker HLP also participates similarly to traders by placing orders. On one hand, the order book model needs to match prices among multiple traders before executing trades, which may improve trading efficiency but could lead to some deviation between transaction prices and market prices. On the other hand, if there are no suitable counterparties, orders may not be executed.
However, MYX uses the AMM model, where the trading counterparties are liquidity providers (LP). When traders go long or close short positions, LP acts as the seller (short). Conversely, when traders go short or close long positions, LP acts as the buyer (long).
MYX does not require a price matching process; it obtains the market price of assets through 'oracle + Keeper' and executes transactions at market prices.
Therefore, MYX has higher trading efficiency, with trading prices closely following market prices and no price slippage. Orders can be completed as long as liquidity permits.
❚ MYX vs GMX
Although both MYX and GMX use the AMM model, MYX's innovative MPM model differs from GMX.
LPs of GMX are long-term counterparties for traders, remaining as corresponding short position holders until long traders close their positions. LPs simultaneously bear long and short risk exposures, and LP funds act as both long and short counterparties, requiring more capital.
However, under MYX's innovative MPM model, MYX's LP (i.e., MLP) is the temporary counterparty for traders. For example, if there are currently neither BTC long nor short positions in the system:
① At this point, BTC long and short positions are in balance; Zhang San opens a long position of 1 BTC, so MLP becomes Zhang San's counterparty, increasing its short position by 1 BTC.
② Next, Li Si opens a long position of 0.2 BTC, and MLP increases to hold 0.2 BTC short position, now holding a total of 1.2 BTC short position.
③ Next, Wang Wu opens a short position of 0.5 BTC, MLP reduces its short position by 0.5 BTC and transfers it to Wang Wu. At this point, LP holds a total of 0.7 BTC short position.
④ Next, Zhao Liu opens a short position of 1.1 BTC, MLP transfers the previously held 0.7 BTC short position to Zhao Liu, and also increases the holding of 0.4 BTC long position as a counter position.
⑤ Next, Sun Qi opens a long position of 0.3 BTC, and MLP transfers the previously held long position of 0.3 BTC to Sun Qi, holding a total of 0.1 BTC long position.
Specifically, the handling in the MYX protocol is:
The margin from traders opening positions is transferred to the MYX protocol for locking. When closing positions, user margins are unlocked, and profitable users withdraw margins and profits minus fees from the pool, while losing users withdraw margins minus losses and remaining funds after fees.
When MLP is holding short positions, it reserves corresponding coins as collateral. Increasing or decreasing short positions means increasing or decreasing the corresponding reserved coins. In ①, 1 BTC is reserved; in ②, an additional 0.2 BTC is reserved; in ③, 0.5 BTC is reduced.
When MLP holds long positions, it reserves corresponding USDT as collateral. Increasing or decreasing long positions means adjusting the corresponding USDT based on the then-current price. In ④, releasing the reserved 0.7 BTC, if the price of BTC when Zhao Liu opens short is 90,000 USDT, then LP reserves increase by 36,000 USDT. In ⑤, if the price of BTC at that time is 100,000 USDT, then LP reduces the reserve by 30,000 USDT.
Create the simplest comic to simplify the logic of the MPM-AMM model:
MLP plays a transitional role between traders in terms of time and capital space, only bearing temporary risk exposure on either the long or short side, thus not requiring much capital.
Therefore, under MYX's MPM model, capital utilization efficiency is higher.
➤ Multi-chain and cross-chain general infrastructure
Using Hyperliquid requires users to deposit funds into Hyperliquid, thus obtaining 0 Gas and an efficient user experience. Its principle is similar to CEX, with a certain degree of centralization.
Using GMX to connect wallets is possible, with a high degree of decentralization, but it only supports the Arbitrum and Avalanche chains.
MYX can be used by connecting wallets, is a non-custodial DEX with a high degree of decentralization, and currently supports four chains: BSC, Linea, Arbitrum, and opBNB.
In addition, MYX collaborates with Particle to support particle general accounts. Users can connect their Metamask, OKX wallets, etc., to create their own general accounts. Wallets that have been connected can directly manage their general accounts.
Funds in the general account are not divided by specific chains and can directly participate in MYX transactions on any chain.
Existing UniversalX users can connect their Metamask, OKX wallets, etc., to use their funds to trade perpetual futures on MYX.
This means the integration of MYX with Particle and the UniversalX ecosystem, providing convenience for user trading.
➤ Trader User Experience and LP Capital Efficiency
❚ Trader User Experience
MYX does not need to match prices, thus achieving a higher trading rate than Hyperliquid. Trades are executed at oracle prices with 0 slippage.
Trading fees are lower than those of Hyperliquid and GMX, with leveraged maintenance in the middle.
Additionally, MYX has developed three account models to suit different user needs.
The classic account model requires manual signing for each transaction, and transactions incur Gas fees.
The seamless account model supports automatic signing during transactions, and transactions do not require Gas payment.
General account model, each transaction requires manual signing, but transactions do not need to pay Gas, and can conduct cross-chain transactions seamlessly.
❚ LP Capital Efficiency
First, the MPM-AMM market-making model allows MYX's LP (i.e., MLP) to not need to continuously hold all traders' counter positions but only needs to hold the counter positions of the difference between long and short positions.
High capital utilization efficiency; with the same scale of LP funds, MYX can provide better liquidity.
Especially for some relatively small MEME coin liquidity pools, it can still provide liquidity for their contract trading.
Secondly, MLP primarily relies on trading fee income. LPs do not participate in long/short speculation and do not need to profit from traders' losses. Their main role is efficient capital management and risk hedging.
Thirdly, MYX differs from Hyperliquid in that the LP pool for each token is isolated, allowing the risks of each token market to be isolated.
Fourthly, due to the relatively small positions held by MLP, the risk exposure is also relatively small; therefore, MYX's trading fee rate is relatively low.
➤ Rapidly rising perpetual futures ecosystem
❚ Uniswap + Hyperliquid
The first phase of the MYX ecosystem is a spot DEX product, similar to Uniswap, where adding liquidity satisfies the needs for coin trading.
The second phase of the MYX ecosystem shifts towards a perpetual futures DEX ecosystem. However, MYX's perpetual futures DEX is not order book-based but adopts an innovative LP model, similar to Uniswap + Hyperliquid.
Currently, MYX's second-phase product has been completed, and the perpetual futures ecosystem is rapidly rising.
Including BSC, Linea, Arbitrum, and opBNB, MYX's total TVL is 41.32 million USD.
Among them, with BSC chain as the main focus, MYX has been online on the BSC chain for less than two months, with TVL reaching 41.23 million USD, and daily trading volume of perpetual futures exceeding 200 million USD.
Among them, the liquidity of BTCUSDT and ETHUSDT exceeds 1 million USD. The annualized yield of PARTIUSDT liquidity exceeds 300%.
According to Certik's detection, MYX's community engagement is also relatively high. The number of Twitter followers shows a growth trend. Telegram has nearly a thousand daily active users.
❚ Uniswap + Hyperliquid + Pump
MYX's short- to medium-term goal is to surpass Hyperliquid and build a decentralized and efficient perpetual futures DEX.
The medium- to long-term goals are even more ambitious; MYX's CPO has released a new product roadmap and product strategy for the next phase.
https://x.com/RyanMYX/status/1918191114135454138
According to this tweet, in the third stage, MYX will achieve more features, including but not limited to the following:
Permissionless listing of perpetual futures assets, allowing liquidity to be added without permission to initiate perpetual futures trading of on-chain assets;
The non-wallet user experience allows users to trade perpetual futures as if they were in a CEX, without repeatedly using wallet signatures to open and close positions.
At that time, MYX may become a phenomenal DEX product that integrates the advantages of Uniswap + Hyperliquid + Pump.
➤ Code Security Audit
MYX has undergone code audits by two auditing firms, Peckshield and SlowMist. The audit reports indicate that MYX does not have high-risk issues.
➤ Financing Background
According to CryptoRank, MYX has gone through three rounds of financing from seed round to strategic investment, raising a total of at least 10 million USD.
Major investors include ConsenSys, Linea, HashKey, etc.
Linea is one of the major investors and also one of the ecosystems supported by MYX. Therefore, MYX is also called Linea's favored child.
➤ Final Notes
MYX's biggest innovation is the MPM-AMM model, which features higher capital utilization for LP funds, increasing liquidity for MYX's perpetual futures trading. On the other hand, it also provides possibilities for perpetual futures trading for smaller liquidity pools of MEME.
The prosperity of MYX on the BSC chain, along with the BSC chain MEME ecosystem, has laid a user base for on-chain Alpha perpetual futures.
The seamless account model, the first on-chain perpetual futures DEX based on general accounts, provides users with a smooth experience close to CEX, which helps maintain user loyalty.
These innovations increase the feasibility of launching MYX's new products. The vision for MYX's new products is to achieve 'permissionless issuance' of on-chain asset perpetual futures. This type of permissionless perpetual futures DEX similar to Pump may bring a new wave of on-chain enthusiasm in the future.