MetaFinance is pleased to announce more unique features of MetaDEX including the vision, technical architecture, and algorithm innovation for Metaverse users and partners.
Meta x Finance: One-Stop Metaverse Finance
MetaFinance has been deeply involved in the field of Metaverse for a year, and has provided financial infrastructure for Metaverse since its launch. On the occasion of halving, they have further refined their mission: One-Stop Metaverse Finance, which means they provide one-stop Metaverse financial services.
In the future, MetaFinance will build more diverse financial services for Metaverse users. Let's review the track occupied by MetaFinance's partners in the field of Metaverse during the first anniversary event:
MetaDEX: provide friendly small trades for Metaverse users
MetaDEX is a product incubated by MetaFinace. It has undergone half a year of algorithm iteration and development, and will be launched in beta at the end of December. At the same time, the algorithm of MetaDEX has attracted many top institutions, and MetaFinance will fully support the iteration of the product to better serve Metaverse users.
Research and development background of MetaDEX
With the rise of Metaverse, play to earn is currently the most popular user behavior. Tens of billions of dollars of funds has participated in the game yield craze in the studios. For users participating in the game, since their daily yield output is realized in the form of tokens. An investment of 100,000 dollars, in the case of 30 days of return, the daily sale volume is around 3,300 dollars. This is just one of the examples. The popularity of Metaverse will cover more users with small trade needs. In the Southeast Asian market, nearly 300 million users participate in digital currency trade, and the daily transaction volume does not exceed 1,000 dollars. The explosion of high-frequency small trades has made MetaDEX teams see a huge market demand. The transaction of on-chain small trade has a daily transaction volume of far more than 1 billion dollars.
MetaDEX: provide the best price for trade less than $5,000
The core algorithm of the MetaDEX architecture is for small trades, using a proprietary algorithm to solve the problem of price slippage in small trades. The theoretical basis of the algorithm comes from the mathematical framework of Uniswap AMM, but the framework can be traced back to the doctoral thesis of Clipper founder Abe Othman in 2012. In this year, Clipper also fundraised 20 million dollars to provide the optimal algorithm for small trade but only for ETH and BTC.
However, the cost of using ETH and BTC is too high for a wider range of Metaverse users.
Compared with Clipper, MetaDEX's token asset will mainly be extended to assets related to the Gamefi project. MetaDEX's algorithm framework can solve three problems:
- For liquidity providers, there is no need to maintain a large AMM liquidity pool. For example, if all users' trade is less than $100, the AMM pool of $400,000 can provide a daily transaction volume of $1 million. On the one hand, it reduces the liquidity mining costs set by the project to attract liquidity. On the other hand, it also improves the capital utilization of liquidity providers, and high-frequency trading will also bring more income.
- For the project, it provides a new liquidity place and reduces costs.
- For users, the best price for small trades can always be obtained.
When it is not the best price, MetaDEX will aggregate the liquidity of other DEX by means of aggregating exchanges.
In aggregation trade, the optimization algorithm expands Balancer's SOR algorithm from each pool to each DEX, obtaining the best price of each DEX. In a small trade, it is based on the ideas of Clipper and Cowswap. Redesigned a new MOA algorithm to provide the best algorithm for small trades (less than $5,000) through a private liquidity pool. The MetaDEX algorithm paper will be published soon, and more mathematical details will be further elaborated in the paper.
MetaDEX will independently issue its own new token as part of product design. Since MetaDEX was first incubated by MetaFinance, the token will be airdropped to MetaFinance's DAO community and other investment DAO organizations. The specific Token model will be announced before TGE.