DexMex: Incorporating Leveraged Trading on Uniswap’s First Decentralized Exchange!

By Guest Author
Published March 23, 2021 Updated March 23, 2021
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DexMex: Incorporating Leveraged Trading on Uniswap’s First Decentralized Exchange!

By Guest Author
Published March 23, 2021 Updated March 23, 2021

Centralized exchanges have for a long time played a role in providing a leveraged trading option. The concept is about to change this time with the introduction of DexMex, a decentralized exchange based on DeFi’s innovative protocol, Uniswap. DexMex works on maintaining a flexible ecosystem whereby users can open a short or long position for any token based on Uniswap. 

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On top of that, the winning positions accumulate rewards from losing positions directly and continuously on a peer-to-peer network. To effectively accomplish the goal of leveraged trading, the DEX ecosystem determines a ratio between the long and short interest of a specific token. 

The leverage updates later once a user withdraws his/her gains or holdings. Determining the ratio differences also eliminates DexMex’s chances of facing liquidity issues that might affect the users’ reward.

Notable Features

DexMex Exchange is a Switzerland protocol established by several DeFi leaders. It contains the following features:

Privacy

Get to trade on a private decentralized exchange without the need of revealing your personal information.

Accessibility and Faster Executions

A MetaMask wallet is the only requirement for trading on DexMex’s network. As such, trading is not impacted by any exterior limitations. Since the DEX platform resides on Ethereum’s chain, trades are executed in a matter of seconds making it a much faster option for trading your ERC-20 tokens. 

An important point to note is that there are no withdrawal or deposit limits when trading on DexMex.

Decentralization

DexMex is built on a decentralized network that allows users to trade confidently without any interruptions from external regulations. It introduces the idea of trading without limits giving traders complete control on their assets.

Lower Charges

The only fee a user is required to pay is the entry fee for opening a long or short position, which goes for 0.8%. There are no hidden charges afterwards and users can retain their winning/losing positions for any period of time.

Eliminates Borrowing

Since rewards are realized through losing positions, a borrowing system becomes less  necessary. 

DexMex Token 

DexMex contains a native token dubbed(DEXM) that supports the exchange’s revenue and economy. DEXM is an ERC-20 token with the following use cases:

Governance

By holding the native token, users are guaranteed exclusive management rights of the treasury funds. Furthermore, DEXM holders can decide on the exchange’s upgrade plan in future and manage aspects such as fees taken.

Re-Purchase and Burn

The exchange will use 0.2% of the fees to buy back the DEXM token.

Staking

Earn 0.5% commission for staking DEXM token and receive reward fees in ETH.

Treasury

A 0.2% fee is allocated to the treasury which is governed by the community, as explained earlier. The treasury will be transferred to DEXM token holders if the project becomes unsuccessful moving forward.

DEXM Tokenomics

The exchange’s native token has a supply of 50,000,000 DXMs in the market out of which 19,000,000 DEXM went to the presale program that took place on February 13 2021 at 17:00 UTC. Seed sale and Uniswap listing allocates for 6,000,000 DEXM and 10,000,000 DXM, respectively. 

Finally, 10,000,000 DEXM goes to the development team and the remaining 2,500,000 DEXM is apportioned to partnerships, exchange listings and marketing activities.

The RoadMap

DexMex started off well with the release of a Beta version on February 22, 2021. It was followed by the introduction of limited governance and a public entry into the market. 

The platform’s full release came later on as Q1 of 2021 came to a close. Come April, DexMex expects to launch new use cases and a full marketing campaigns to garner more users on Uniswap’s first decentralized exchange.

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Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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