The encrypted derivatives market is becoming increasingly hot. Four perspectives on how MEKE becomes a disruptor in the DEX field.
MEKE, a disruptor in the DEX field, is capitalizing on the growing popularity of the encrypted derivatives market.
Since the birth of Bitcoin in 2009, blockchain technology has been destined to change our lives, and the field of cryptocurrencies is also destined to continue to grow and develop. In recent years, with the increasing number of participants, the preferences of users have gradually shifted from spot trading to derivatives trading, and the track of crypto derivatives has become increasingly hot, already becoming a trillion-dollar market.
According to the market trading report published by CryptoComLianGuaire in June of this year, the trading volume of crypto derivatives reached $2.75 trillion that month, accounting for 66.1% of the total trading volume. Even though the crypto market has since experienced a significant decline, the trading volume of the crypto derivatives market is still at a high level.
The Genesis Market Report for the second quarter of 2023 states that if following the trend of traditional financial derivatives, the crypto options market has 10 times the room for growth compared to the current level. The report believes that options have become the preferred tool for institutional investors to enter the cryptocurrency market. Currently, institutional investors are seeing an increase in capital inflows in the field of crypto derivatives. In contrast to the growth of derivative trading volume, the liquidity of the spot market is being affected, resulting in long-term weakness in spot order depth. The report shows that a significant portion of future cryptocurrency trading volume growth will come from derivatives.
There is no denying that in recent years, the development of the derivative DEX track has been rapid, with a market value exceeding $2 billion, accounting for 7.9% of the total DeFi market value. However, currently, the derivative trading market is still dominated by CEX, with DEX accounting for only 3% of the total trading volume. However, the rise of DEX is clearly unstoppable. Compared to traditional CEX, DEX has the characteristics of permissionless, allowing anyone to develop new products on the protocol; DEX is resistant to censorship and can effectively resist manipulation by centralized institutions; DEX has the advantage of 24/7 trading. The previous collapse of FTX exposed the vulnerability of CEX, and more and more investors are turning their attention to DEX. For DEX, there are four main areas that need breakthroughs: how to upgrade functionality; whether it can provide the market with the best prices through aggregated liquidity; the need to focus on developing on-chain copy trading to attract more users; and the need to focus on traditional assets to meet the diverse needs of users.
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And MEKE is obviously a qualified disruptor. MEKE is a decentralized cryptocurrency derivatives trading protocol built on blockchain technology developed by a team from the United States. In terms of functionality upgrade, MEKE has already been deployed on the opBNB testnet. opBNB is an L2 testnet launched by Binance Smart Chain (BSC) on June 19th this year. It is an EVM-compatible L2 scalability solution based on the Optimism OP Stack. BSC was launched by Binance in 2020 to provide users and developers with a faster, safer, and lower-cost decentralized application environment during the congestion of Ethereum. opBNB chose to deploy on the BNB chain, which has more advantages than Ethereum, and with Binance as a strong technical support, it can safeguard the subsequent development of MEKE.
In terms of platform pricing, ordinary exchanges often experience drastic fluctuations in candlestick charts, which may cause unnecessary losses for users. MEKE solves this problem through a specific algorithm. Specifically, MEKE prices are divided into three categories: real-time trading prices of MEKE contract products, spot index prices obtained through oracles from major platforms, and index prices of the MEKE platform. MEKE uses at least seven different aggregators to ensure that the Chainlink oracle used by MEKE can continuously provide highly accurate and timely data. By using a weighted algorithm to combine Chainlink’s price feeds and MEKE’s real-time contract trading price mechanism, the expected profit and loss of users’ open orders can be calculated. This ensures that MEKE’s price is more stable, even when there are fluctuations in the contract market or deliberate manipulation of real-time trading prices, and maximizes user benefits.
In terms of on-chain trading, unlike traditional centralized perpetual contract exchanges, MEKE’s main functions are deployed on the blockchain. Each transaction made by users is recorded on the blockchain, ensuring the authenticity of the transactions to the maximum extent. At the same time, because all transactions are recorded on the blockchain, each transaction made by users is traceable, guaranteeing the fairness of user transactions. Moreover, the transaction process is completely executed by smart contracts, and the security of users’ assets is guaranteed by the blockchain. There is no third-party intervention throughout the entire process, and users have complete control over their assets.
In summary, MEKE has outstanding performance in terms of functionality, pricing, trading, and user demand, making it a potential disruptor in the DEX field.
Furthermore, it is worth noting that MEKE is currently conducting a public test with airdrops. The first phase of MEKE’s public test ended on August 14th, receiving positive feedback from users, and the second phase of the public test is currently in progress. Users participating in the MEKE public test can receive platform tokens (MEKE) through airdrops and increase their chances of winning opBNB. It can be said that participating in the MEKE public test may have benefits comparable to participating in the early tests of DYDX, Optimism, and Arbitrum. Due to the unique issuance mechanism designed by the platform, the issuance of MEKE platform tokens is limited, so users who participate in the public test earlier can receive more benefits.
The second phase of the MEKE public test is currently in full swing. For the latest information, please long-press and copy to subscribe to the MEKE official community.