The leveraged trading aggregator is added on top of the existing MUXLP pool in MUX V2.
MUX V2 will integrate with leading leveraged trading protocols on the market, starting with GMX.
MUX V2 selects the most suitable liquidity route and minimizes the composite trading cost for traders.
MUX V2 can supply additional margin for traders to boost the leverage up to 100x on aggregated underlying protocols.
Try MUX V2: https://app.mux.network
Leveraged trading is one of the fastest-growing domains in DeFi. Moreover, in the context of the latest major centralised exchanges' downfall, self-custody awareness has been dramatically strengthened; decentralised exchanges are gaining more positive traction.
Currently, more than 20 leveraged trading protocols are deployed on various blockchains. However, as the protocols proliferate rapidly, obstacles appear along the way:
While trading protocols bootstrap liquidity to onboard traders, the liquidity across different platforms is scattered. Liquidity insufficiency or underutilisation occurs along the way.
There isn’t a native approach to adequately utilize the liquidity across different trading protocols and offer streamlined open interest caps for traders.
The differences between pricing mechanisms and margin parameters on each protocol are vast; traders can’t easily access the optimal pricing and trading experiences.
In an attempt to address the issues mentioned above and build an all-in-one platform for on-chain leveraged trading, MUX is launching the MUX leveraged trading aggregator, a sub-protocol in the MUX protocol suite. The MUX aggregator will be added in MUX V2, and it was designed with the following goals in mind:
Optimized trading cost
The aggregator comprehensively compares the trading cost from integrated protocols. As a result, it selects the most suitable liquidity route and minimizes the composite cost for traders while meeting the needs of opening positions.
The “trading cost” of leveraged trading is a composite factor containing the price, spread, slippage, price impact, position fees and other potential explicit trading costs. In addition, the composite factor also involves implicit costs like max leverage, maintenance margin, liquidation fees, available liquidity, etc.
Aggregated liquidity across protocols and chains
When traders open positions on MUX, the aggregator will dynamically route positions to suited underlying trading protocols based on market, position size and user preferences. As a result, traders won’t need to be distracted by the liquidity supplier behind the aggregator; they only need to focus on the unified trading interface. The MUX aggregator integrates with GMX upon the release and will gradually integrate with more protocols on different chains.
By integrating with GMX and more protocols in the future, the MUX aggregator aims to be an all-in-one platform for traders to access diverse markets.
While MUX allows up to 100x leverage under its native pool, it can also supply additional margin for traders to raise the leverage to 100x on aggregated underlying protocols. For example, traders can open 100x positions on GMX through the MUX aggregator.
The aggregator will first integrate with GMX, then gradually integrate with more prominent leveraged trading protocols. The MUX team will continuously develop and deliver features to meet traders’ needs; the following is our current roadmap
MUX Protocol V2: Composite with GMX and offer 100x leverage for traders
MUX Protocol V3: Launch the cross-chain aggregation feature
MUX Protocol V4: The integrated management of underlying positions