MCB MUX Protocol

MUX Protocol Overview

MUX Protocol is a decentralized margin-trading protocol that allows users to handle transactions across multiple networks. It provides several key features:

• Leveraged Trading: MUX Protocol offers up to 100x leverage for traders, enabling them to open large positions with minimal capital.
• Universal Liquidity: The protocol unifies liquidity across different networks, ensuring that traders have access to deep and consistent liquidity pools.
• Optimized Trading Cost: MUX Protocol minimizes trading costs by automatically selecting the most suitable liquidity route for each transaction.
• Diverse Market Options: Traders can access a variety of market options, including perpetual trading and aggregated liquidity.

Key Components

• MUX Perpetual Aggregator: This sub-protocol aggregates liquidity from multiple sources, such as MUXLP pool, MUX-DegenLP pool, GMX (V1+V2), and gTrade, to provide traders with the best possible trading conditions.
• MUX Native Trading Protocol: This protocol offers zero price impact trading, up to 100x leverage, and self-custody, providing an optimized on-chain trading experience.
• MUX Degen Protocol: Tailored for enhancing long-tail assets trading experience, this protocol allows traders to trade against the MUX DegenLP pool.

Benefits for Users

• Traders: Can open up to 100x leveraged positions with zero price impact, trade with optimal cost, and use multiple types of assets as collateral.
• Liquidity Providers: Can supply liquidity to earn protocol income and MUX token rewards, and stake MUXLP tokens for additional benefits.
• Community Members: Can lock MCB to receive veMUX tokens and participate in the governance of the protocol.

Additional Features

• Broker Module: A bot that monitors total liquidity and fills orders based on available liquidity across deployed networks.
• Universal Liquidity Mechanism: Ensures higher capital efficiency by unifying liquidity across networks without moving pooled assets around.
• MUX Tokens: Can be used to redeem profits when pooled liquidity on a chain cannot fully cover traders' profits.

Pros of MUX Protocol

• High Leverage Options: MUX Protocol offers leverage up to 100x, allowing traders to open larger positions and potentially increase their profits.
• Deep Aggregated Liquidity: The protocol aggregates liquidity from multiple sources, providing deep liquidity pools and diverse market options, which helps in executing large trades without significant price slippage.
• Optimized Trading Costs: MUX Protocol minimizes trading costs by leveraging its unique aggregator features, making it more cost-effective for traders.
• Smart Position Routing: This feature automatically routes traders' positions to the most suitable liquidity sources based on various factors such as market conditions, position size, and user preferences, ensuring optimal trading outcomes.
• Universal Liquidity: The protocol unifies liquidity across different networks using a broker module, offering higher capital efficiency without the need to move pooled assets around.
• Aggregated Position Management: Traders can manage aggregated positions with components routed to different liquidity sources, supporting larger position sizes and reducing trading costs.

Cons of MUX Protocol

• Limited User Base: Despite generating significant revenue, MUX Protocol has a relatively small daily user base, indicating potential for growth but also current limitations in user adoption.
• Complexity: The protocol's advanced features and mechanisms may be challenging for new users to understand and navigate.
• Dependence on Integrated Protocols: The leverage boosting feature relies on integrated protocols like GMX and Gains Network, which may introduce additional dependencies and potential risks.
• Governance and Token Dynamics: The use of veMUX and MUXLP tokens for governance and liquidity provision can be complex and may require a deeper understanding of the protocol's mechanics.

Founders of MUX Protocol

The MUX Protocol was founded by Jie Liu in 2019. Prior to founding MUX Protocol, Jie Liu was a senior software engineer at Baidu and developed various technologies such as Doris (a distributed database), Minerbabe (a mining software), and a GPU mining management tool.

Investors in MUX Protocol

MUX Protocol has received backing from several notable investors, including:

• Binance Labs: A leading blockchain technology incubator and venture capital arm of Binance.
• Multicoin Capital: A venture capital firm focused on investing in blockchain and cryptocurrency projects.

Additionally, MUX Protocol has completed several funding rounds with various investors:

• Series Unknown (May 21, 2021): Raised $7,000,000 from 19 investors.
• Private Token Sale (Jan. 1, 2022): Raised $600,000.
• Grant (Oct. 13, 2023): Received $4,824,000.

Halal Status of MUX Protocol

• Halal Status: No
• Reason: MUX Protocol is listed as "Questionable" in halal crypto reports, indicating concerns about its compliance with Islamic finance principles.