DexMex is a decentralized exchange that seeks to provide more features to advanced traders in the DEX market. The platform is based on Uniswap, the world’s top DEX in terms of market cap. However, unlike Uniswap, DexMex users gain access to a variety of peer-to-peer leveraged trading features.
Notably, DexMex has been under construction since last year as its developers fine-tuned the options and security of the network. The platform officially launched this month. Its launch represents a shift in the capabilities of DEXs as DexMex is the first DEX to offer users leveraged trading opportunities.
What Problems Does DexMex Attempt to Fix?
The developers behind DexMex seek to rectify many of the shortcomings of Uniswap by offering a more inclusive entry point for users. In the past, Uniswap has seen criticism for its limited trading environment and lack of even the most basic trading features, such as limit orders. DexMex tackles these concerns head-on with its advanced protocols and proprietary technology.
DexMex will also help to alleviate another concern faced by DEX traders, listing delays. Compared to centralized exchanges, DEXs provide projects a more streamlined entry point into the market. For example, it can take months and many executive approvals to get listed on centralized exchanges such as Binance. DexMex allows any firm to seed a liquidity pool and thereby gain instant access to the market.
Benefits of DexMex
There are a lot of benefits one can gain when they join the DexMex ecosystem. Primarily, the platform features a decentralized layout that improves transparency for all parties. Additionally, the network’s simplistic interface eliminates most of the technical barriers associated with trading on DEXs.
Another major draw for this platform is its privacy-focused approach. You don’t need to register or fill out intrusive KYC/AML regulatory forms. By providing traders a more private entry point into the market, DexMex increases your personal protection from theft by hackers or confiscation of your digital assets by officials.
Keeping along this line of thought, DexMex employs some top-level security protocols to keep you safe. For one, the network operates in a non-custodial manner. This designation means that you never have to relinquish control of your digital assets to participate in the DexMex ecosystem.
Compared to other options, DexMex offers a very competitive fee structure. The network introduces a flat fee of 0.8% on all trades. This rate is a fraction of the cost of conducting trades on many of the world’s top centralized exchanges.
One of the biggest problems facing DEX users at this time is a lack of liquidity. DexMex avoids these concerns through the introduction of a new strategy. Specifically, the ratio between the interest of the shorts and longs is used to determine the reward value of your position. In this way, you always can find other parties to participate in your trades.
As a DexMex user, you gain a share of the profits the platform earns directly. All DEXM token holders can look forward to these rewards. Notably, these funds originate from a 0.5% fee charged to staking pool participants. This strategy encourages more participation in the network and boosts the value of the platform’s native utility token, DEXM.
Wisely, the developers choose to make all rewards payable in ETH directly. Paying out rewards in ETH brings with it some added advantages for token holders. For one, it helps fight inflation as in the past DeFi platforms have seen their token prices plummet due to over-issuance. It also allows DexMex users to save time and fees.
DexMex also introduces some deflationary protocols to better control the value of the project token as time progresses. There is a 0.2% fee from transactions that are earmarked for burns and buybacks. Wisely, the platform added these features and the flexibility to examine the market conditions to decide which route is best suited to retain token values. The main difference between the two strategies is that burned tokens are destroyed permanently.
How Does DexMex Work?
DexMex is an Ethereum-based DEX. As such, you gain access to the entire Ethereum ecosystem. Ethereum is by far the largest token issuance blockchain and DeFi platform host. DexMex users enjoy access to all of these projects plus unmatched interoperability such as the use of popular ERC-20 compatible wallets. All of these factors provide users with more flexibility and options in the market.
There are multiple positions DexMex users can take advantage of while trading on the exchange. The network offers forever positions, which can be compared to perpetual futures in that they never expire. You can also hold a long or short position. Long positions are held when you think the value of the asset will rise, whereas shorts are a popular way to bet against market downturns. Notably, in the DexMex ecosystem, losing positions reward the winning positions.
DexMex also offers staking services directly from its platform. The network has listed an impressive selection of staking pools. These pools include ETH-wBTC, LINK-ETH, UNI-ETH, ERN-ETH, ETH-USDC, 1INCH-ETH, MATIC-ETH, AAVE-ETH, MKR-ETH, and DEXM-ETH.
Keeping in line with the transparent and open nature of DEXs, DexMex will introduce a community governance mechanism in the coming weeks. All DEXM token holders gain the ability to cast votes and make proposals regarding the future developments of the network. For example, the community will have a say on how treasury funds are spent, crucial upgrades, or the platform’s fee structure.
DexMex introduces a community treasury to further fund the expansion of the ecosystem. A small portion of all staking fees, 0.02%, goes towards this community smart contract. The treasury is managed directly via the community governance mechanisms of the platform.
DEXM is the main utility token for DexMex. This ERC-20 compliant token can be stored in any ERC-20 wallet, such as Metamask. Users can save on fees and gain more ROI opportunities, plus voting rights when they hold DEXM. Keenly, the total supply of DEXM is capped at 50 million tokens. Developers issued 19 million DEXM tokens during the presale event.
DexMex – A New Generation of DEXs are here
DexMex represents a shift towards more functionality within the DEX sector. For years, traders have complained that DEXs don’t offer anything close to the features and earning potential of centralized exchanges. Now, all of that is set to change as leveraged trading options are sure to become a major draw for those seeking added capabilities. As such, DexMex is ideally positioned to usher in this change in the coming weeks.