> For the complete documentation index, see [llms.txt](https://docs.mux.network/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.mux.network/protocol/overview/mux-v3-trading-protocol.md).

# MUX V3 Trading Protocol

Since launching MUX V1 in August 2022 and witnessing $48B+ trading volume by September 2024, the organic user adoption and trading volume from MUX V1 and the Perpetual Aggregator (MUX V2) have proven the oracle-based P2Pool model's product-market fit for on-chain perpetual trading. Using the oracle-based model, MUX can offer fast order execution speed and a much lower spread than the traditional order-book-based trading platforms.

However, the existing P2Pool model has limitations, like relatively low capital efficiency and limited market diversity. MUX V3 introduces a redesigned liquidity setup and new trading features to improve LP performances and trading experiences.

**MUX V3 Trading Features:**

* 0% price impact & spread for bluechip markets
* Up to 100x leverage
* Cross Margin & Isolated Margin Modes
* 1-Click trading with a chargeable trading account (Coming Soon)
* New price aggregation powered by Chainlink Data Streams and the MUX Dark Oracle
* Enhanced aggregator trading experience with more aggregated liquidity sources

**MUX V3 Liquidity Setup:**

* P2Multi-Pool
  * MUX V3 offers a new multi-pool liquidity setup (P2Multi-Pool) to meet diverse risk-exposure preferences from LPs.
    * The liquidity pools from the P2Multi-Pool setup are MUX V3 pools (MUX3LP).
  * Each MUX V3 pool supports different collateral, market exposure and long/short exposure options.
    * Supported collateral options include stablecoins, yield-bearing tokens, volatile assets and liquidity re-staking tokens.
  * Trader’s positions will be automatically routed to one or more MUX V3 elemental pools through the MUX Aggregator to support the needed size while ensuring optimized trading cost.
    * LPs will earn fees paid by traders.
* Highly customizable market and long/short-exposure options
  * Under the V3 pools, each supported market has separated long and short exposure, without pursuing mandatory long-short balance.
    * The market determines the long-short ratio of each trading pair under the elemental pools.
  * LPs can supply liquidity based on their preferences through highly customizable markets and long/short-exposure options.
  * For any given direction of a trading pair (e.g., longing BTC), the liquidity can be provided by multiple pools with different collateral assets.
  * Each MUX V3 pool can also provide liquidity to multiple trading pairs.
* High capital efficiency
* High market diversity