MYX, a decentralized derivatives protocol incubated by D11 Labs, has finished a 5 million seed round on 50 million valuation. The round was led by HongShan (Sequoia China) and saw participation from notable investors including Consensys, Hack VC, OKX Ventures, Redpoint China, HashKey Capital, Foresight Ventures, GSR Markets, Alti5, Leland Ventures, Cypher Capital, Bing Ventures, and Lecca Ventures. These funds are earmarked for accelerating technological innovation and market expansion at MYX, aimed at facilitating the swift launch and scaled growth of its mainnet product.
MYX is an innovative decentralized perpetual exchange that achieves zero slippage through its unique Matching Pool Mechanism (MPM). Seamlessly matching long and short positions, MYX enables capital efficiency up to 125x, unlocking boundless opportunities for traders.
MYX revolutionizes the trading landscape by reengineering the entire process, guaranteeing system stability through intelligent funding rates, and advancing scalability through upcoming features like LP return swaps.
Leveraging profound expertise in overseeing exchanges with monthly transactions in the hundreds of billions and assets exceeding one billion dollars, the MYX team is committed to delivering a product experience that is both straightforward and comprehensive. The team’s diverse financial background guarantees seamless resource collaboration and operational stability post-launch.
MYX’s core design: The matching pool mechanism engine
The Matching Pool Mechanism (MPM) engine, a pioneering innovation by MYX, disrupts the traditional model. Under this engine, Liquidity Providers (LPs) are exclusively exposed to net open interests. This strategic approach empowers LPs to focus on adeptly managing and mitigating risks, rather than being tied to specific long or short positions or relying on traders’ losses for gains. The equilibrium of long and short interests results in optimized capital efficiency, while any imbalances is compensated by stable and ongoing funding fees for LPs.
How it works
In the conventional peer-to-pool model, Liquidity Providers (LPs) shoulder the counterparty risk for both long and short positions, resulting in low capital efficiency as each trade ties up a specific amount of liquidity. Contrastingly, MYX’s Matching Pool Mechanism (MPM) pairs long and short traders, swiftly releasing tied-up liquidity once counterparts are matched. This innovative approach has the potential to infinitely amplify LPs’ capital efficiency under ideal conditions.
Crafted to deliver sustainable returns grounded in genuine user demand, this innovative mechanism caters to traders, market makers, and Liquidity Providers (LPs). Departing from the obsolete reliance on token incentives or traders’ losses, the Matching Pool Mechanism paves the way for breakthroughs in risk management and profit maximization. It propels the trading ecosystem towards a more equitable and sustainable trajectory, marking a significant advancement in the industry.
Leveraging the cutting-edge Matching Pool Mechanism engine, MYX boasts some of the market’s most competitive trading fees. The taker fee is set at 0.07%, and the maker fee impressively low at 0.045%. VIP users enjoy even greater advantages, with the opportunity to experience remarkably reduced trading fees, reaching as low as 0.02%.
MYX goes the extra mile with a dual oracle system, guaranteeing users always get the most favorable execution prices for their trades. This unique feature provides users with a zero-slippage trading experience, effectively sidestepping the additional costs associated with slippage.
Dedicated to enhancing the trading experience, MYX focuses on optimizing efficiency and lowering costs. Beyond offering the best rates, MYX ensures the best execution prices and the lowest cost of holding positions, fostering a highly competitive trading environment for our users.
MYX has revolutionized the role of liquidity providers with the introduction of an LP return swap. This innovative feature not only enhances their risk management capabilities but also introduces multiple levels of scalability.
Internally, the LP return swap functions as a vital bridge connecting market makers and users. It opens new fundraising channels for market makers while ensuring users receive stable returns for their participation. This dynamic optimizes liquidity and capital efficiency, elevating the overall appeal of the platform.
Externally, the MLP serves as an unleveraged tool devoid of bankruptcy risk. Its versatility extends to seamless integration with third-party protocols, such as lending and staking in the DeFi ecosystem. This integration allows users to introduce leverage or create synthetic assets, providing a more diversified investment strategy and unlocking the potential for higher returns.
Taking a broader view within the DeFi ecosystem, the incorporation of cross-chain technology enables MLP to facilitate trading across networks. This not only enhances the interoperability of the entire ecosystem but also unlocks new markets and investment avenues for MLPs. The expanded application scope and profit potential position MLPs as a dynamic asset. As cross-chain solutions continually evolve, the high interoperability and adaptability of the MLP stand as a significant competitive advantage for MYX.
The Keeper system
MYX introduces a pivotal decentralization element: the Keeper system. This empowers token holders and LPs to act as platform Keepers, playing a vital role in safeguarding the autonomy and security of smart contract operations. This mechanism significantly enhances the platform’s decentralization and sustainability, fostering a robust and secure ecosystem.
Active community members engaging in the Keeper system enjoy not only token rewards but also a share of transaction fees, diversifying their revenue streams. As MYX expands its cross-chain liquidity features, the role of Keepers becomes increasingly crucial. They actively facilitate the seamless movement of capital across diverse blockchains, thereby expanding the horizons for MLPs and bolstering the connectivity of the entire DeFi ecosystem. Hence, the Keeper system stands not only as an integral component of MYX’s decentralized architecture but also as a core element of its MLP scalability strategy.
MYX consistently prioritizes user experience. By leveraging the proprietary Matching Pool Mechanism (MPM) for zero-slippage trading, MYX ensures optimal price execution for every transaction, significantly reducing trading friction. In terms of trading fees, MYX offers the lowest on the blockchain—only 0.045% for Maker trades and 0.07% for Taker trades for regular users, with VIP users enjoying rates as low as 0.02%, thus providing the most competitive fees in the market.
Addressing holding costs, MYX distinguishes itself by charging no borrowing fees and implementing an intelligent funding rate system. The platform’s funding rates are determined by the net open interest of long and short positions. Through strategic integration of market makers, MYX aims to attain a balanced open interest, effectively minimizing long-term holding costs for users.
Furthermore, MYX provides a user experience akin to centralized exchanges, featuring streamlined operations accompanied by comprehensive trading guides, tutorials, and round-the-clock online customer service. This commitment ensures that even first-time users can effortlessly navigate the platform, fostering accessibility and ease of use.
All relevant mechanisms operate purely on-chain and have undergone rigorous contract auditing conducted by PeckShield, with an additional audit by SlowMist nearing completion. These comprehensive audits add an extra layer of assurance to the platform’s security and reliability, creating an efficient and cost-effective trading environment for users.
Within MYX, Liquidity Providers (MLPs) do not gain from traders’ losses. Instead, they enjoy substantial transaction fees on volumes hundreds of times greater than the liquidity they provide. This is facilitated by an intelligent funding rate adjustment system, effectively bridging the liquidity gap between Centralized Exchanges (CEXs) and Decentralized Exchanges (DEXs).
This distinctive approach empowers Liquidity Providers (LPs) to manage and hedge their risk exposure with enhanced efficiency and effectiveness. During extreme market volatility or liquidity crunches, MYX deploys the Dynamic Position Limit (DPL) and Auto-Deleveraging (ADL) mechanism to thwart malicious actors from exploiting liquidity shortages for profit. The implementation significantly bolsters market stability and liquidity, eradicates potential risks, and safeguards the interests of both traders and liquidity providers. MYX’s comprehensive risk control measures establish a robust foundation for the stability and reliability of the trading ecosystem.
Equitable Trading: Open-source smart contracts, zero MEV, and no reliance on user losses for profits.
Low Transaction Costs: Benefit from minimal on-chain fees during trades, and eliminate the need to pay borrow fees when holding, reducing overall costs.
Optimal Depth: Achieve trades at the finest prices, with no spreads or slippage for large market orders, unlock unprecedented trading advantages.
Seamless User Experience: Beginner-friendly interface, expert guidance, and round-the-clock support. Diverse strategies for effortless trading. Your convenience, our commitment.
Sustainable Yield: Built on the robust and unique MPM mechanism, MYX achieves greater LP position neutrality and matching efficiency, delivering stable and substantial returns.
Intelligent Risk Management System: Equipped with an intelligent risk management system to comprehensively guard against network outages, oracle attacks, liquidity squeezes, one-sided markets, and asset collapses. MYX is committed to providing a safe, efficient and competitive trading environment.
MYX has achieved a milestone by successfully concluding a $5 million seed round funding, attaining a valuation of $50 million. This success is attributed to the innovative MPM mechanism and the team’s profound technical and operational expertise. The funding round garnered significant interest and support from key investors, including Sequoia Capital and various investment institutions spanning CEXs, market makers, and local communities. This collective backing forms a robust foundation for the sustained development of the project.
Mark, the visionary founder of MYX, shared, “We are deeply honored that, even in a bearish market, this funding round has garnered the attention of top-tier capitals. It not only underscores our team’s dedication but also reflects capital’s acknowledgment of our entrepreneurial vision, execution strategy, and innovation capacity. Confronted with the decentralized derivatives market’s potential quarterly volume of $900 billion, we firmly believe that focusing on overall trade volume growth through product, mechanism, and business innovation is paramount.
In this critical juncture, we find ourselves on the brink of a potential new cycle, with the advancement of BTC spot ETFs and the upcoming Bitcoin halving next year. Only products satisfying users’ needs will emerge as leaders amid intense competition. For MYX, our aspiration transcends mere transaction volumes or fee figures. We envision a future where MYX serves as the clearing and settlement center for decentralized derivative transactions on-chain, fully unlocking the infinite potential of our matching pool trading engine. This ambitious goal is made possible through the robust support of our capital and ecosystem partners, and together, we aim to elevate decentralized derivative protocols to unprecedented heights.
In summary, MYX stands as a pioneering decentralized perpetual exchange, poised at the forefront of financial innovation and eager to embrace challenges. By implementing a suite of groundbreaking mechanisms that optimize liquidity, reduce trading costs, enhance user-friendliness, and fortify risk control strategies, MYX effectively addresses challenges, creating substantial advantages for both users and liquidity providers. The backing from numerous top-tier capitals underscores the market’s strong confidence in MYX’s innovative model and its potential for future growth.
As the decentralized perpetual exchange landscape continues to expand, MYX remains committed to continually refining platform performance and user experience to meet the rapidly increasing market and user demands. Our goal is to establish MYX as a globally leading decentralized perpetual contract trading platform.
MYX signifies not just innovation but also efficiency and sustainability, infusing new vitality into the decentralized finance sector and propelling the entire industry forward. We anticipate MYX’s future success, offering an exceptional trading experience for a diverse user base, and welcome you to embark on your decentralized trading journey with MYX.