Recently I took the bold step to lock up my MDX for 365 days in the Mdex boardroom staking program for some insane APY.
Despite the relatively poor performance of the MDX token, I feel confident of this move because of the project’s strong fundamentals.
In this post, I would be sharing with you everything you need to know about Mdex. And what I think the price of MDX could be in the next few years ahead.
But first, let’s take a quick look at some Mdex fast facts.
Mdex (MDX) fast facts
- Mdex is the third-largest decentralized exchange (DEX) based on trading volume, just behind Uniswap and PancakeSwap.
- As of today (July 21, 2021), Mdex boasts over $2.7 billion TVL (total value locked).
- Mdex has been audited by 3 different auditing agencies –Fair Group, Certik, and Slow mist.
- The Mdex team has locked up 22,178,953 MDX of the team’s token for 365 days to show their commitment to the success of the project.
- Mdex is currently available on the Ethereum, BSC, and Heco chains.
- Mdex burns a portion of the MDX token through its burning black hole program.
- The Mdex daily MDX emission amount is reduced by half every 3 months starting from June 2021 until 2026.
- The Mdex bridge allows you to move assets from one supported chain to another, e.g. BSC to Heco and vice versa.
- Mdex integrated DEX, decentralized autonomous organisation (DAO), and initial Mdex offering (IMO/ICO).
- Mdex uses a dual mining mechanism where it rewards users for providing liquidity (liquidity mining) as well as for trading on its platform (transaction mining).
- Mdex is the largest project on Heco Chain based on market capitalization (MC). In fact, its MC is over 10x that of all other projects on Heco (very few) combined.
- MDEX stands for Mandala Exchange
With that out of the way, lets’s dive deeper into the project.
What is Mdex?
Mdex is a decentralized exchange that uses the automated market maker (AMM) model to enable swapping of any Ethereum, BSC, and Heco chain-based tokens for another seamlessly.
It is a multi-chain decentralized cryp[tocurrency exchange that’s currently available on the Ethereum, Binance Smart Chain (BSC), and Huobi Eco Chain (Heco).
Mdex combines the advantages of the low transaction fees of the Heco, the security and network effect of Ethereum, and the deep liquidity and userbase of BSC to create a more versatile and dynamic DEX that caters to the needs of all DeFi users.
The project aims to build the largest DeFi platform integrating DEX, ICO and DAO on multiple chains with unique products and features such as its dual mining, boardroom staking, and burning black hole programs.
The exchange was launched in January 2021 and has within this few months rose to be in the top 3 largest DEX in the world based on trading volume.
The Mdex team
The Mdex team, like every DEX team in crypto, are anonymous. Meaning nobody knows the real-life identities of the project developers.
As such, if they so desire, they can disappear into thin air and run away with whatever they can. And there will be little to nothing investors in the project can do.
That’s just so you know and take into your risk analysis. The team has displayed a high level of competence and commitment to the project’s long term success so far.
Mdex core products and features
Mdex is basically a DEX for non-custodial token swaps. Its core products and features include but are not limited to:
- Token swaps
- Liquidity mining
- Trading (transaction) mining
- Boardroom staking
- Cross-chain bridge
- Burning black hole
- Initial Mdex offering
Let’s take a close look at each of the above products and features below.
1. Token swaps
Mdex facilitates non-custodial token swaps on Heco, BSC, and Ethreum at significantly low fees and faster transaction confirmation times.
As of the time of writing this article, about 66 different tokens are listed with over 1000 trading pairs on Mdex Heco. And 53 tokens listed with 237 trading pairs on Mdex BSC.
Compared to PancakeSwap’s 1,600 coins and over 11,000 trading pairs, there are a lot more tokens currently not available on Mdex. But we can say it’s a good start.
2. Liquidity mining
You can provide liquidity into any of the over 56 liquidity pools on Mdex and earn a share of all trading fees generated from that pool.
Furthermore, you can stake your liquidity provider (LP) token and earn MDX in addition to your share of the pool’s fees on the Mdex liquidity page.
The APRs of these pools are quite significant and juicy if you ask me.
3. Trading (transaction) mining
One of the most unique things about Mdex is its trading mining feature where you earn MDX for every trade involving a select list of tokens and trading pairs.
With trading mining, some transactions on Mdex could cost almost nothing or even a negative charge.
According to data from their website, Mdex has already handed out as much as $280 million in transaction mining rewards to its users and still growing.
4. Boardroom staking
Mdex supports flexible and fixed-term staking of MDX to earn MDX, WBNB, COW & MDX, and TUSD through its boardroom program.
Only the stake MDX to earn MDX pool has fixed lockup periods where you can either choose to lock up your MDX for 30, 90, 180, and 365 days with different and dynamically adjusting APYs.
Once staked in any of these fixed lockup periods, you would not be able to withdraw your tokens until the time elapses.
But you can remove your earnings any time or better still, restake what you earn to compound. Note that any new staking or restaking will have its own countdown timer, different from the initial one.
However, in the rest of the boardroom staking pools, you can withdraw your tokens at any time.
5. Cross-chain bridge
The Mdex bridge allows you to transfer selected tokens from one supported chain to another.
As of the time of writing this article, only three tokens (BNB, COW, HMDX) are supported on the bridge. And it only supports crossing from BSC to HECO and vice versa.
6. Burning black hole
As part of the measure to make MDX deflationary, Mdex has implemented what it calls the burning black hole game.
In each round of the game, MDEX will provide $300,000 in USDT to the reward pool from the MDX buyback and burn fund.
To participate in this game, users send in their MDX tokens and receive a burning number (more like a lottery ticket number).
The winning ticket numbers would then share the $300,000 and 10% of all MDX deposited by participating users. The remaining 90% of the deposited MDX is then burned.
All participants who did not win will receive a share of the USDT allocation from the pool as compensation. So, in the end, it’s not a zero-sum game like a regular lottery system.
7. Initial Mdex offering
In order to help new crypto projects gain exposure and raise funds quickly, Mdex conducts what it calls the Initial Mdex Offering (IMO) which is a form of ICO.
Users can participate by connecting their wallets to the IMO platform and purchasing available IMO projects using the required token.
The Mdex community
Mdex has an active and supportive community of speculators, investors, users, partners, and onlookers alike.
There are over 123,000 members in the Mdex official Telegram group, over 5000 followers on their new Twitter account, and 3000+ Discord members.
The most important community members that dictate the value and fortune of the project are the platform users -traders and farmers.
According to the data from DeBank today (July 21, 2021), Mdex has daily active users of over 10,700, which is significantly behind PancakeSwap’s 190,000+, Uniswap’s 30,000+, and QuickSwap’s 13,000+ active users within the last 24 hours.
In terms of community building, Mdex still has a lot of room to grow, and some of the things that will significantly contribute to this growth are the quality of its IMOs, platform stability, the listing of more tokens and trading pairs, innovative products/features, consistent policies, etc.
I believe that as long as the team keeps building with a long term focus and pushing forward with its marketing efforts, the userbase will grow and so will its revenue and ultimately, the value of the MDX token.
The Mdex token (MDX)
MDX is the native cryptocurrency that powers the entire Mdex ecosystem.
It has a maximum supply of 1 billion and is available as an ERC20 token on Ethereum, BEP20 on BSC, and HECO on Heco Chain.
Of the 1 billion MDX supply, 10% was allocated to the team, 7% for early investors, 3% for market operations, and 80% for liquidity and transaction mining.
New tokens are released into circulation through liquidity and transaction (dual) mining.
Initially, Mdex produces 80 MDX per block (every 3 seconds) until the first halving on June 5, 2021, when it was slashed to 40.
And every 3 months, until 2026 (when the entire mining allocation is exhausted) the amount of MDX issued per block will continually be halved.
MDX use cases
- MDX is used primarily to reward users and long term supporters of the project through staking, transaction mining, liquidity mining, etc.
- MDX gives its holders governance rights. MDX holders can vote for new token listings and other proposed protocol changes.
MDX price predictions
During the last bull run, January to May 2021, MDX achieved its current ATH (all-time high) price of $10.11 before falling from grace like most tokens and now currently trades around $1.16.
But where can it go from here?
Before any meaningful price prediction can be made we need to examine the tokenomics factors that affect the value of the token.
1. The MDX emission
Firstly, MDX is used to reward platform users through the dual mining program, who would mostly sell their rewards and thereby contributing to MDX inflation and dumping.
2. The MDX buyback and burn
The second thing to note is the MDX buyback and burn program. Mdex maintains a buyback and burns fund where a portion of all trading fees generated on the platform is deposited for regularly buying and burning MDX as well as reward burning black hole game participants.
Mdex charges a 0.3% fee on all trades on its platform. 0.1% is used to promote the development of the MDEX project, 0.14% to reward miners, and 0.06% to repurchase and burn MDX.
Thus the more revenue the platform generates, the more MDX it can burn, and the higher the value of the remaining MDX in circulation.
3. The MDX halving
Every 3 months the amount of MDX to be produced per block is halved. Thus systematically and gradually reducing the number of the tokens being released into circulation and suppressing inflation.
4. The MDX burning black hole
The more MDX is destroyed through the burning black hole game, the less MDX will be in circulation and the more valuable the token becomes.
However, also note that $300,000 from the buyback and burn fund will be drawn to reward burning black participants.
Therefore, if the value of the tokens thrown in by participants into the burning black hole game is not significantly higher than the $300,000 reward pool, the impact wouldn’t be so meaningful.
From the foregoing, it’s clear that, given sufficient time, MDX will become deflationary as less and less is being released and more of the token is being burned.
Based on this, we can safely draw out some price predictions for the token.
MDX price prediction 2021
In the absence of any further bull run in 2021 and if the current bearish market persists, I expect MDX to trade within the $0.5 and $2.5 range.
It would hardly go beyond these limits if the current market conditions persist throughout 2021. Mostly because, the emission is still high at 40 MDX per block, 1,152,000 per day, until September when it would be halved again.
The current inflation burning level is far higher than what’s being taking out through burning. Therefore the dumping will continue well into 2022.
MDX price prediction 2022-2026
The entire 800 million MDX allocated for mining would have been released into circulation by around 2026.
By that time, I expect the volume and revenue of Mdex to be at least x5 from here to about $1.8 billion, which would put the daily buyback and burn amount at over $1 million.
At the same time, MDX emission would reduce to about 1 token per block.
Combine the aggressive token burn program of PancakeSwap with the limited supply of Uniswap and what you get is the tokenomics of Mdex.
This scenario makes me extremely bullish about MDX and I strongly believe the token would be well over $100, and that’s being conservative.
In between, see the upper limit for MDX to be $15 by 2022, $25 by 2023, $40 by 2024, and $75 by 2025. $100 by 2026.
The growth of MDX in the next 5 years and more would be massive, though that’s IF the project still exists by then and they keep staying competitive.
Things you may not like about Mdex
Hey! CryptoSorted is it only good things you have to say about Mdex? Of course not.
Aside from the fact that the team the project is anonymous, they tend to change things without notice which infuriates users.
A perfect example is when the introduced MDX single token locks up staking a few days ago. It was sudden and abrupt, creating unnecessary panic among investors, including myself.
Consistency in policies are required and whenever changes are required to be made (which they usually are, given how fast things move in crypto) efforts should be made to give sufficient and prior notice to affected users.
Secondly, their website (mdex.com) is down most of the time, and it’s irritating.
They have a backup of the site running concurrently at mdex.co and mdex.me but it’s the only DEX I know with such lousy and intermittent website downtimes.
Conclusion
Mdex is the most valuable project on the Heco Chain and sits comfortably in the top 3 positions among all DEXs just in under 7 months of its existence.
It’s available on both Ethereum, BSC, and Heco, tapping liquidity and volume from these popular chains which have contributed to its exponential growth within this short time of its existence.
Given its limited token supply, aggressive token burn program, and other innovative tokenomics features, my price predictions for MDX for the next few years are:
- $15 by 2022
- $25 by 2023
- $40 by 2024
- $75 by 2025
- $100 by 2026