Mettalex
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Possible operations
In order to access the Mettalex DEX platform, visit the following link: https://dex.mettalex.com. Traders can access the platform using either the Ethereum Network or the Binance Smart Chain Network. You will be asked to connect your wallet by choosing one of the following choices:
Note: remember that the available markets depend on the network you decide to use to interact with Mettalex DEX (markets-available-on-mettalex-dex-vega). If you opt for the Kovan Test Network you will be able to perform operations that consider as collateral USDT whereas the Binance Smart Chain Network will allow you to execute operations considering MUSD or BUSD collateral.
(BUSD TRADING IS IN BETA. USE WITH CAUTION! NOT FOR USE BY U.S. INDIVIDUALS!)
As we can see from the image above, when entering Mettalex DEX, you can access one of the following possible sections:
TRADE
In this section you will be able to perform the following actions:
- 1.Hedge or Speculate by using the Trade functionality to buy individual Position Tokens;
- 2.Get exposure in position tokens on centralized exchanges by using the Mint functionality to create pairs of Long and Short position tokens from your collateral. These newly minted tokens can be implemented further yield farming strategies through other Dapps available in the space;
- 3.Close positions by using the Redeem functionality to burn pairs of Long and Short Position Tokens and get back the underlying collateral, or by using the Swap functionality to sell individual Position Tokens.
ACCESS ACCOUNT
You will be redirected to the Mettalex Dashboard . From here you can perform different actions related to their strategies and beliefs (e.g. trading or supplying liquidity). You will be able to switch among different markets.
SUPPLY LIQUIDITY
This section is for Liquidity Providers who wants to perform the following actions:
- 1.Deposit collateral for the Autonomous Market Maker to use to create Position Tokens for the Swap functionality.
- 2.Withdraw collateral to claim your share of the trading fees earned by the Autonomous Market Maker.
- 3.Stake Liquidity Provider shares for Liquidity Mining rewards in the form of MTLX Governance tokens.
Mettalex DEX Dashboard.
Trading in a Market
Mettalex DEX: Trading section, Trade functionality.
It is the first category of actions that users can undertake on Mettalex DEX. Users need to visit the Mettalex Trade section in order to proceed with this action (visit the following link: dex.mettalex.com). The trading section allows traders to open market positions on a wide variety of markets. It is possible to open positions considering as underlying assets either ferrous (e.g. copper, steel rebar, steel scrap, silver, gold, iron ore) or non-ferrous assets (e.g. Bitcoin or Ethereum). After choosing the market desired, the DEX will show you various information about the market itself, such as:
- Long and Short price.
- Last date on which the price was updated.
- Sentiment.
- Underlying asset graph.
- Long and Short tokens graphs.
- Floor and Cap values (i.e. Price band).
- Purchased tokens information (Symbol, purchase price, swapped price, current price, P&L for token, total P&L and the return).
In the TRADE section, traders can convert the stablecoin stored in their wallets into position tokens for hedging or speculating purposes. This operation is performed thanks to the “Trade” functionality which allows users buy either Long or Short Position Tokens. If you believe that the price of a specific asset will increase in the near future, you will be willing to swap your stablecoin with long position tokens representing that asset and thus gain long exposure to that underlying asset. Conversely if you believe a drop in the price is more likely, you will be willing to buy a short Position Token on that asset. This operation happens thanks to the presence of the AMM. In fact traders do not need to interact with other participants on the market as the AMM acts as a counter party in this operation. When trading, traders will have to pay a fee to liquidity providers in order to remunerate them for taking on timing risk from the AMM. These tokens can be used inside or outside the DEX itself. Traders can use the position token either to take a position on the market or use them in operations outside it. On Mettalex DEX, these positions can be kept in an open status as long as the user wants to. This freedom is guaranteed by the fact that traders are allowed to close a position whenever they desire just by interacting directly with the AMM, by converting the position token into stable coin (e.g. USDT) which will be deposited back into the user’s wallet.
Market Making
Market Making operations are the second category of operations users can undertake on Mettalex DEX (visit the following link: dex.mettalex.com). This category of operations are directed to more experienced users and divide into minting and redeeming of position tokens. As in the section before, it is possible to access these actions via the Mettalex Trade section, through the dedicated section "Advanced +" as depicted in the images below.
Mettalex DEX: Trading section, Advanced + section.
Mettalex DEX: Trading section, Mint functionality.
The market maker user interface provides additional functionality to mint and redeem Long/Short Position token pairs related to a certain underlying asset. It happens by supplying collateral to the system for token minting. By minting a new pair of L/S Position Tokens, you will provide enough collateral for this operation to be performed and you will receive back a Long and a Short position token representing the underlying asset at the current bid-ask price available on the market. These new tokens can be used in different ways. In fact these can be exchanged on other Exchanges or adopted in Yield Farming strategies through other protocols available in the DeFi space. Minting differs from providing liquidity because this latter operation is directed to LPs who wants to provide liquidity in return of a yield on the capital invested.
Furthermore, users can supply a single Long/Short Position tokens for redemption (i.e. users exchange L/S pairs against stablecoin collateral). This action of Redeeming positions can be performed either using the Redeem functionality to burn pairs of Long and Short Position Tokens and get back the underlying collateral, or by using the Trade functionality to sell individual Position Tokens on the market and remain with just a single exposure on the underlying asset of reference. This is, a user who mints new token pairs might want to perform some other type of speculating, hedging or yield farming operation rather than just providing liquidity to gain fees from the DEX.
Mettalex DEX: Trading section, Redeem functionality.
Liquidity providing
Liquidity providing operations are the third category of operation users can run on Mettalex DEX (visit the following link: dex.mettalex.com). It is possible to access these actions via the Mettalex Liquidity section. Users can deposit funds represented by stablecoin collateral (i.e. USDT) and are rewarded with a further aggregated yield on the capital invested via transaction fees and trading spreads between prices, according with the amount and duration of liquidity supplied into the system. In the first page, you will have access to different information about the available markets, your wallet, the available balances of liquidity provided to each market, the average APY for the chosen market and the transaction history.
These Liquidity Providing operations are essential to guarantee the correct execution of transactions on the DEX as these guarantee the presence of enough liquidity into the Mettalex system to ensure the creation of new position tokens for the Trade functionality. These operations differs from providing collateral for minting new L\S Position Tokens pairs as these latter imply other strategies rather then leaving the liquidity untouched on the DEX itself.
Mettalex DEX: Liquidity section, Deposit.
In the “Deposit” tab enter the amount of liquidity you want to deposit into the liquidity pool and click the “Deposit” button. You can deposit part of your funds thanks to the buttons shown in the deposit window (e.g. 25%, 50%, 75% or 100%). "Deposit All" allows the user to deposit all of his funds whereas "Start Earning" transfers funds from the Vault contract to the Autonomous Market Maker (AMM) contract so you can start earning trading fees.
Mettalex DEX: Liquidity section, Withdraw.
Whenever you wish to witdraw your liquidity, access the “LIQUIDITY” page and use the drop-down menu at the top to select a commodity to withdraw liquidity from. In the liquidity provider tab, click on “Withdraw” and enter the amount of liquidity you want to withdraw from the liquidity pool and click the “Withdraw” button. You can withdraw pre-determined part of your funds (e.g. 25%, 50%, 75% or 100%). The “Withdraw all” button gives you the ability to withdraw all funds from the selected liquidity pool (for that specific commodity).
Stake and Earn Rewards (MTLX)
This is the last set of operations available on the DEX and users can access them via the Mettalex Liquidity section. It is important to specify that not all of the markets on Mettalex DEX provide access to these type of operations. The markets for which these operations are available are the ones denoted by a white symbol in the drop-down menu.
By choosing one of these markets, enter the "Mettalex Rewards" tab in the Mettalex Liquidity Section. Here users can deposit their liquidity to the Mettalex AMM and start earning rewards represented by MTLX governance tokens. These tokens can be withdrawn at any time and can be sold on the open market or implemented on other strategies according to the user's preferences. The liquidity provided will be used by the Mettalex AMM to guarantee the creation of position tokens to be exchanged through the Swap functionality and hence ensuring the correct execution of operation on the DEX.
For further information about how to stake your liquidity, earn rewards and claim them visit the mettalex-dex-lp-mtlx-rewards-walkthrough.
Mettalex DEX: Liquidity section, MTLX Rewards.
Last modified 22d ago