Cross-Chain Interoperability: How MDEX innovates to solve problems in the DeFi ecosystem
Initially, people used cash as a payment instrument. Until now, this payment instrument is still used everywhere. Other payment instruments are also used such as electronic transfers or bank transfer systems. People started using this payment method which resulted in a surge in transactions via the internet. Internet banking transactions skyrocketed and became a big step that made many people start switching there.
As technology develops, new payment instruments using cryptocurrency have emerged. Based on blockchain, transparency between servers is predicted to be the reason why cryptocurrency will be looked at by many people so that it is considered a safe digital currency.
Paying for coffee or pizza is no longer a dream. Some many shops and cafes accept cryptocurrency payments today.
Just imagine, one serene afternoon you are enjoying a cup of coffee while looking out the window. Then when you make a payment it turns out that you don’t have cash. You smile when the waiter says you can make payments with Bitcoin, and you’re confused again because you only have ethereum.
That’s the main problem in today’s crypto payment systems, cross-chain payments are still hard to find, that’s the lack of interoperability.
Why cross-chain technology is the next big thing in the crypto community
The word “interoperability” consists of 3 words, namely: “inter” which means between (several things), “operate” which means work, and “ability” which means a level of skill. So interoperability is the ability of various systems to work together and be able to interact with other different systems to allow the exchange of data/information through a mutually agreed protocol.
Let’s take a simple example, with high interoperability, you can use a card issued by your bank to make payments freely when visiting abroad, regardless of the currency that applies there. Isn’t that interesting?
In cryptocurrency, we know there are many chains at the moment. often transactions can be done only with coins or tokens that have the same chain. If you have BTC, you will have difficulty making payments when what is needed is ETH, you have to exchange BTC with ETH first, then make payments, and it will cost a lot of gas, not efficient.
One of the most developed ecosystems in the middle of blockchain is Decentralized Finance or better known as DeFi. We know that DeFi gives users many advantages with speed, freedom, and transparency in the system. But, without cross-chain interoperability, DeFi will only “walk in place”, difficult to develop. Wouldn’t it be great to link multiple chains together to maximize activity in the DeFi ecosystem?
Yes! and that’s what MDEX is currently developing
In this fast-paced and instant modern life, demands for fast and multifunctional services, on one hand, are increasingly being sought. That is why, a cryptocurrency ecosystem with high interoperability with MDEX will provide many advantages, including:
- Services and information without limitation of time and space.
- Expanding the range of services and delivery of information.
- Higher service quality.
- Reducing Total Administrative Costs and Time for Society Information.
- Ensure transparency and accountability.
As DeFi grew, the lack of a cross-chain interoperability platform was one of the big problems. Many efforts have been developed such as a centralized interoperability platform, WBTC, etc., but they all come with many limitations.
This article will discuss MDEX, a cross-chain platform that provides many benefits for its users and overcomes many current interoperability problems.
MDEX innovation that you should know
MDEX is an automated market creation decentralized exchange with a fund pool concept and is based on the mixed chain DEX model based on the Heco Chain and Ethereum. Why did Heco and Ethereum choose? the reason is that MDEX wants to provide users with a pleasant experience with low transaction fees from the advantages of the Heco chain and the profitable ecosystem of Ethereum.
MDEX innovates to build a multi-functional DeFi platform, by integrating DEX, IMO / ICO, and DAO in the Heco and ETH chains, providing services with multiple choices and configuration of more secure assets, and higher returns. You also have the opportunity to swap, stake and trade using MDEX.
MDEX’s main goal is to become a multi-chain DeFi financial platform, covering asset pricing, transaction settlement, value flow and growth. The multitude of advantages offered through one multi-chain platform greatly enhances interoperability.
MDEX has collaborated with trusted auditing agencies and partnered with many blockchain platforms engaged in cryptocurrency with large community support to increase market confidence.
Liquidity Pool on MDEX
A crypto exchange typically uses an order book model for the execution of crypto trades. That’s how the traditional stock market works. However, such a model relies heavily on market makers to provide liquidity to the exchange. With a liquidity pool, we can have an automated market-maker that stores constant liquidity, so we no longer require an external market-maker and a centralized order book. This advantage is what MDEX takes advantage of.
On the DeFi platform, a liquidity pool facilitates the price adjustment of a particular token pair, using a mechanism called AMM (Automated Market Maker). The algorithm used allows the quantity of the supply of the two tokens to remain the same. For example, the liquidity pool of CON / USDT on MDEX, will provide a new market for CON / USDT. The bigger the liquidity pool, the smaller the slippage range and price movements.
Additional liquidity pools are always informed quickly and openly at https://mdex.medium.com/
how do you join mining liquidity and trade mining on MDEX?
- All you have to prepare is to set up a HECO wallet in Metamask
- prepare HT in your wallet for transactions
- for mining liquidity: on the home page, click [swap] then [add liquidity], then return to the home page, click on [Liquidity Mining] then Select the LP that you want to Stake.
- for trade mining: on the home page Click [trading mining] — [Select the trading pairs] — [Enter the amount that you want to swap]
Are you interested?
To find out how much you will get and more complete steps please check here https://mdex.medium.com/how-to-participate-in-liquidity-mining-and-trade-mining-in-mdex- 52329cfde91c
Since its inception, MDEX has set surprising new records. This is a sign that MDEX is very potential and liked by many people because of various profitable innovations. This infographic is sufficient to explain everything.
Official website link: www.mdex.com
Telegram Chinese: https://t.me/MixDex
Telegram English: https://t.me/MdexEN
MDEX Economic Whitepaper
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