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Tokens available on Mettalex DEX
- 1.Mettalex governance tokens (MTLX): these tokens enable stakeholders to take part in the decision making process regarding the platform (e.g. vote on the creation of new markets or the usage of exchange fees).
- 2.Position Tokens: within the Mettalex system, position tokens serve two main purposes: long tokens closely track changes in the price of an underlying asset in ways that reflect changes in the physical market, whereas short tokens follow any negative dip in price without accruing significant cost.
Position tokens can be divided in:
- Commodity Tokens: commodity tokens represent commodities (e.g. scrap metal assets) currently available in the physical marketplace. These are linked to the underlying asset using information produced by a reference exchange.
- Spread tokens: these tokens represent a particular feature of Mettalex DEX. In fact the system is capable of tokenising spreads between commodities simply by using the difference between asset indexes as the reference value. For example a steel mill is long the spread between steel scrap and steel rebar. To hedge their position using commodity futures would require opening positions in both commodities while in the Mettalex system a single position token is sufficient.