Definition of some key terms in the MCDEX ecosystem

  • Mai Protocol v3 - Suite of smart contracts that create a permissionless automated market maker (AMM) for perpetual swaps.

  • MCDEX - Platform and an ecosystem with DeFi products that are built on top of it. Mai Protocol v3 will be one of the many DeFi products that will be built on MCDEX.

  • MCDEX DAO - Decentralized autonomous organization (DAO) is an organization that is transparent and governs the entire MCDEX ecosystem with the use of the MCDEX native token, MCB.

Introduction of Mai Protocol v3

Mai Protocol v3 is a fully permissionless protocol for decentralized perpetual swaps. It is designed to prioritize censorship resistance, security, self-custody, and to function without any trusted intermediaries.

How does the Mai3 Protocol different from a traditional centralized market?

1.Fully Permissionless

Permissionless design means that the protocol’s services are entirely open for public use, with no ability to selectively restrict any user. Anyone can trade, provide liquidity, or create new markets at will. This is vastly different services offered by traditional financial, which typically restricts access.

2.AMM Vs Orderbook

Traditional exchanges use a central order book model, where buyers and sellers create orders organized by price level that are progressively filled as demand shifts. Anyone who has traded stocks through brokerage firms should be familiar with an order book system.

The Mai3 protocol takes a different approach, using AMM in place of an order book.

At a high level, an AMM replaces the buy and sell orders in the order book with a liquidity pool of the collateral tokens. The long and short traders all trade against the AMM instead of trading with each other.