Understanding the derivatives protocol MYX: Led by Hongshan, what makes it special?
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Understanding the derivatives protocol MYX: Led by Hongshan, what makes it special?
MYX, a decentralized perpetual exchange at the forefront of financial innovation, stands at the cutting edge of DeFi, ready to meet challenges.
Navigating Web3 tides with focused insightsMYX, incubated by D11 Labs, has recently closed a $5 million seed round at a $50 million valuation. The round was led by HongShan (Sequoia China), with participation from Consensys, Hack VC, OKX Ventures, Redpoint China, HashKey Capital, Foresight Ventures, GSR Markets, Alti5, Leland Ventures, Cypher Capital, Bing Ventures, and Lecca Ventures. These funds will be used to accelerate MYX’s technological innovation and market expansion, driving rapid mainnet product launch and scalable growth.
TL; DR
1. MYX is an innovative decentralized perpetual exchange that enables zero-slippage trading through its proprietary Matching Pool Mechanism (MPM), efficiently matching long and short positions with capital efficiency up to 125x, unlocking infinite possibilities.
2. MYX redefines the entire trading process by ensuring system stability via intelligent funding rates and enhancing scalability through upcoming features such as LP yield swap functionality.
3. Backed by deep experience managing billion-dollar monthly-volume exchanges and over $1 billion in assets, the MYX team is committed to delivering a simple yet rich product experience. With diversified backing from leading investors, the team ensures stable post-launch operations and strategic resource collaboration.
MYX's Core Innovation: The Matching Pool Mechanism Engine
MYX introduces a groundbreaking Matching Pool Mechanism (MPM) engine that disrupts traditional models. Under this mechanism, liquidity providers (LPs) are only exposed to the net open interest of the platform. As a result, LPs no longer act as direct counterparties to traders but instead focus on efficiently managing and hedging risk—without relying on trader losses for profit. When long and short positions are balanced, capital efficiency is maximized. In cases of imbalance, LPs and market makers receive fair compensation through consistent and stable funding rates.
How It Works
In traditional point-to-pool models, LPs directly assume counterparty risk from both long and short sides, with each trade consuming liquidity and resulting in low capital efficiency. In contrast, MYX uses the MPM to match opposing traders. Once matched, liquidity previously tied up by temporary exposure is quickly released, allowing LP capital efficiency to scale near-infinitely under ideal conditions.
This innovative design delivers sustainable returns for traders, market makers, and LPs based on real user demand, moving away from outdated models overly reliant on token incentives or trader losses. The Matching Pool Mechanism empowers users with breakthroughs in risk management and return optimization, advancing the trading ecosystem toward greater fairness and sustainability.
Trading Costs
Powered by the advanced Matching Pool Mechanism engine, MYX offers users some of the most competitive trading fees in the market. Taker fees are just 0.07%, while Maker fees go as low as 0.045%. VIP users can enjoy rates as low as 0.02%.
Additionally, MYX employs a dual-oracle system to ensure execution prices are always favorable to users, enabling zero-slippage trading and eliminating additional costs caused by price impact.
MYX is dedicated to optimizing the trading experience, making it more efficient and cost-effective. We offer not only the best fee structure but also optimal execution prices and minimal holding costs, creating a highly competitive trading environment.
MLP Scalability
By launching the MLP yield swap fund, MYX redefines the role of liquidity providers, enhances their risk management capabilities, and unlocks multi-layered scalability.
Internally, the LP fund acts as a bridge between market makers and users, offering new fundraising channels for market makers while providing users with stable returns. This improves capital flow efficiency and strengthens overall platform appeal.
Externally, MLP is fundamentally a non-leveraged instrument with no risk of insolvency. It can integrate with third-party DeFi protocols for lending, staking, and more—enabling leverage or synthetic asset creation—and thus opens up diversified investment strategies and enhanced yield opportunities for users.
From a broader DeFi ecosystem perspective, cross-chain technology allows MLP to support trading across different blockchains. This enhances interoperability across ecosystems and unlocks new markets and investment avenues for MLP, significantly expanding its application scope and potential returns. As cross-chain solutions continue to evolve, the high capital mobility and adaptability of the LP fund will become a key competitive advantage for MYX.
Keeper System
MYX also introduces a critical decentralized component: the Keeper system. This system increases participation among token holders and LP stakers by enabling them to become guardians of the platform. Keepers play a vital role in ensuring autonomous and secure operation of smart contracts, further enhancing the platform’s decentralization and sustainability.
By participating in the Keeper system, community members not only earn token rewards but also share in transaction fees, diversifying their income streams and directly boosting platform economic activity. As MYX expands its cross-chain liquidity capabilities, the role of Keepers becomes even more crucial—they facilitate seamless capital movement across chains, extending the reach of LPs and strengthening connectivity across the broader DeFi ecosystem. Thus, the Keeper system is not only a core part of MYX’s decentralized architecture but also central to its LP fund scalability strategy.
User Experience
As an ambitious platform, MYX places user experience at the forefront. Through its proprietary Matching Pool Mechanism (MPM), MYX enables zero-slippage trading, ensuring every trade executes at the optimal price and dramatically reducing trading friction. On trading fees, we offer the lowest on-chain rates: 0.045% for Maker trades and 0.07% for Taker trades, with VIP users enjoying rates as low as 0.02%—among the most competitive in the market.
Holding costs are another key focus. There are no borrowing fees, and our intelligent funding rate system adjusts based on the platform’s net long/short open interest. By onboarding large-scale market makers, we help balance open interest, minimizing long-term holding costs for users.
Furthermore, MYX delivers a user interface similar to centralized exchanges, streamlining operations with comprehensive trading guides, tutorials, and 24/7 customer support to ensure even first-time users can get started effortlessly.
All mechanisms operate on-chain, have passed contract audits by PeckShield, and are nearing completion of audit by SlowMist. These audits further reinforce platform security and reliability, delivering a high-efficiency, low-cost trading environment.
Risk Management
At MYX, LPs do not profit from trader losses. Instead, through an intelligent funding rate adjustment system and a large-scale market maker model, MYX seamlessly connects CEX and DEX liquidity, increasing overall market depth while largely avoiding common issues like impermanent loss found in traditional DEXs.
This unique approach allows LPs to manage risk exposure more easily and effectively, enabling better hedging. Even during periods of extreme market volatility or liquidity drought, MYX leverages its DPL+ADL mechanism to prevent malicious actors from exploiting thin liquidity for profit. This greatly enhances market stability and resilience, eliminating potential risks and attacks, and protecting the interests of both traders and liquidity providers. With comprehensive risk controls, MYX establishes a solid foundation for the stability and reliability of the trading ecosystem.
User Advantages
For Traders
1. Fair Trading Market: Open-source smart contracts, zero MEV, and no reliance on trader losses for platform profits.
2. Low Trading Costs: Enjoy the lowest on-chain fees when trading, reducing transaction costs; hold positions without paying borrowing interest, lowering long-term holding costs.
3. Best Depth: Guaranteed optimal price execution, no spread on large market orders, zero slippage—maximizing trading advantages.
4. User Experience: Intuitive interface that helps newcomers start smoothly. Comprehensive guides, 24/7 professional support, diverse strategies, copy-trading functionality—all designed for ease and flexibility.
For LPs
1. Sustainable High Returns: Thanks to the powerful and unique MPM mechanism, MYX achieves neutral LP positioning and higher matching efficiency, delivering stable and high-yield returns.
2. Smarter Risk Control: An intelligent risk management system comprehensively guards against network outages, oracle attacks, liquidity runs, one-sided markets, and asset collapse risks—delivering a safer, more efficient, and competitive trading environment while safeguarding user assets.
Capital Support and Recognition
In the current market climate, MYX has successfully raised $5 million in seed funding at a $50 million valuation, thanks to its innovative MPM mechanism and the team’s strong technical and operational expertise. This round attracted top-tier investors including Sequoia Capital and other leading institutions, spanning multiple ecosystem segments such as CEXs, market makers, and local communities—laying a solid foundation for sustained project development.
Founder’s Gratitude and Vision
Mark, founder of MYX, said: "We feel deeply honored that despite the challenging market environment, this funding round has still garnered strong support from many top-tier investors. This reflects not only our team’s hard work but also broad recognition of our entrepreneurial vision, execution roadmap, and innovation capability. With the decentralized derivatives space representing a nearly $900 billion potential market size each quarter, we firmly believe the most important thing is not competing between protocols, but growing the total market through product, mechanism, and business innovation.
Indeed, we are now at a pivotal moment. With progress on BTC spot ETFs and next year’s Bitcoin halving event, we may soon enter a new cycle. Only products that meet the needs of the era and users will stand out. For MYX, our ambition has never been about trading volume or fee numbers—we’ve always envisioned becoming the clearing and settlement hub for on-chain decentralized derivatives, fully unleashing the infinite potential of our matching pool engine. Of course, this journey cannot succeed without strong support from capital partners and ecosystem collaborators. Together, let’s push decentralized derivatives to new heights."
Conclusion
MYX, an innovator at the forefront of financial technology, stands at the cutting edge of DeFi, ready to meet the challenges ahead.
By adopting a suite of innovations—including optimized liquidity, reduced trading costs, improved usability, and robust risk controls—MYX not only solves longstanding issues in traditional platforms but also creates significant advantages for users and LPs alike. Strong backing from top-tier investors further validates market confidence in MYX’s innovative model and future potential.
As decentralized perpetual exchanges continue to grow, MYX remains committed to continuously improving platform performance and user experience to meet rapidly evolving market and user demands, striving to become the world’s leading decentralized perpetual contract trading platform.
MYX represents not just innovation, but also efficiency and sustainability. It injects fresh energy into the decentralized finance landscape and will continue to drive the industry forward. We look forward to MYX’s future success, delivering exceptional trading experiences to a global audience. Join MYX and embark on your decentralized trading journey.
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