DexMex is a decentralized exchange that enables peer-to-peer (p2p) leverage trading for any ERC-20 token. Users trading on uniswap can open long or short positions, including $UNI-ETH, ERN-ETH, $LINK-ETH, and many more.
Decentralized platforms have become more popular over the years compared to centralized platforms due to their many advantages. So, what is DexMex offering its users? Here is a deeper look.
The Purpose of DexMex
DexMex was created to increase the space for leverage and short trading. Every month, an exchange volume of 50 billion runs through decentralized platforms that are limited to accommodate vast transactions.
Additionally, leveraged trading is widely used in centralized exchanges such as Binance and Bitmex with trading volumes exceeding 100 billion each month. DexMex can accommodate anyone willing to short or long any ERC-20 token.
As opposed to decentralized exchanges, centralized exchanges come with a lot of issues. For example, any centralized business is subject to various laws and regulations from external parties, which lead to manipulation and monopoly. In terms of privacy, centralized exchanges are not secure since one must give their identity while transacting in them.
In centralized exchanges, third parties verify the transaction, which takes a lot of time and diminishes token owners’ security. Thanks to DexMex, this problem is now solved.
Advantages of DexMex
Liquidity: Liquidity problems do not face this protocol because the reward value of a user’s position is determined by a ratio between the shorts’ interests and the longs’ interests.
Flexibility: On the DexMex platform, users can open a long or short position against any token listed on uniswap since the DexMex protocol is 100% decentralized. Traders don’t need to wait for their favorite tokens to list on a centralized exchange that supports margin trading.
No borrowing: Traders don’t need to borrow the token to enter a long or short position since all trading happens in Ethereum.
Timeless Positions : Comparing DexMex to perpetual future contracts, it’s evident that one can hold a short or long position open as long as they wish.
Low fees: DexMex trading fee is as low as 0.8% required in entering a position. Additionally, in DexMex, there are no hidden commissions that are stuck up overtime.
No barriers: DexMex traders aren’t required to create an account for them to trade. All they need is a MetaMask wallet, meaning they have 100% control of their funds at all times.
Governance and Transaction Fees
Governance and decision-making on this platform’s development will be made using the DexMex token ($DEXM) in a decentralized manner. Variables such as fees and additional features can be voted and created by the community.
Stakers on this platform earn commissions directly in ETH. Of all the volume made from the platform, 0.4% will go to people who stake DexMex. 0.2% of all the volume will be used to redeem DexMex and burn the tokens purchased to increase its scarcity.
When taking a long or short trade, users will incur an entry fee of 0.8%. After that, there will be no additional fee meaning users can hold their winning/losing positions as long as they want without paying penalties.
DexMex has a total supply of 50,000,000 DEXM, of which 37,500,000 DEXM is in circulating supply. The seed sale (100 eth) is equal to 60,000 DEXM per ETH, while the pre-sale (400 eth) is equal to 47,500 DEXM per ETH.
Working Towards a Bright Future
The DexMex platform is set to be fully operational by late Q1 of 2021. This date is crucial because when the protocol starts burning DEXM, its demand will skyrocket due to its scarcity.
Additionally, adoption for DexMex is expected to explode during 2021 as more people will embrace the DeFi economy since trading in DexMex is easy.
