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