MCDEX Coin Price & Market Data
MCDEX price today is $53.66 with a 24-hour trading volume of $1,488,019. MCB price is up 10.6% in the last 24 hours. It has a circulating supply of 2.3 Million MCB coins and a total supply of 2.27 Million. If you are looking to buy or sell MCDEX, Uniswap (v2) is currently the most active exchange.
What is MCDEX (MCB) token?
MCB is a multi-purpose token that is utilized in MCDEX’s decentralized protocol which facilitates trading of perpetual contracts.
What is MCDEX?
MCDEX is a decentralized exchange (DEX) that aims to offer perpetual swaps trading. A perpetual swap contract is a financial contract without an expiration date whose trading price is anchored to the underlying asset price index through a funding mechanism.
Perpetual contracts are based on margin, which allows leverage. The MCDEX Perpetual contract provides up to 10x leverage, by using a funding mechanism that keeps prices anchored to an index. Unlike traditional perpetual contracts such as those offered by BitMEX or Binance Futures, the MCDEX perpetual contract is decentralized which provides opportunities to build new kinds of decentralized financial products and services.
How does MCDEX work?
MCDEX relies on an automated market maker (AMM) to provide liquidity and calculate the funding rate. Both long and short traders can acquire positions by trading against the AMM. The pricing formula of MCDEX’s AMM provides a continuous depth for market-making and adjusts the price according to market demand. To supplement this, MCDEX also offers an off-chain order book because of its superior liquidity (despite its centralized nature).
However, it should be noted that there is no direct link between the off-chain order book and the AMM, nor is the funding rate calculated from the order book. The demand for trades in the off-chain order book is passed on to the AMM through the arbitrageurs, thereby changing the fair price of the AMM and indirectly affecting the funding rate.
Through this method, the formulas embedded into the AMM will create a reliable Mark Price and Funding Rate which is done fully on-chain. On the other hand, other smart contracts can obtain perpetual positions by trading against the AMM, thus offering the possibility to build structured products on top of the perpetual contracts.
What can MCDEX (MCB) tokens do?
MCB tokens have two (2) main features. The primary feature is its governance aspect which allows MCB voters to vote on numerous matters such as modification of contract parameters: commission rate, initial/maintenance margin rate, liquidation penalty rate, etc.
The other main feature is its utility which will be introduced in later versions. MCB holders will be able to act as liquidators and take all the liquidation risk - this is balanced against liquidation penalties which will be used by the protocol to repurchase MCB tokens, thereby allowing MCB to capture the value of liquidation. Notably, MCB will also be eventually used as collateral for the AMM, enabling MCB holders to provide liquidity.