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This analysis is used to explore the Benefits and Features of MUX Protocol in the Avalanche network.
The MUX Protocol Suite aims to address these issues by providing traders with a comprehensive suite of protocols that offer deep liquidity, low trading costs, and a wide range of leveraged trading options.
The MUX Leveraged Trading Protocol is a decentralized protocol that allows traders to trade with up to 100x leverage without any counterparty risks. Traders will trade against the MUX native pool (MUXLP pool) on the Leveraged Trading Protocol, which ensures that there is always liquidity available for traders. The protocol also offers zero price impact trading, which means that traders can open and close positions without affecting the market price.
The MUX Leveraged Trading Aggregator is a sub-protocol in the MUX protocol suite that automatically selects the most suitable liquidity route and minimizes the composite cost for traders while meeting the needs of opening positions. The aggregator can also supply additional margin for traders to raise the leverage up to 100x on aggregated underlying protocols. This ensures that traders always get the best possible price for their trades and can maximize their profits.
In addition to the Leveraged Trading Protocol and the Leveraged Trading Aggregator, the MUX Protocol Suite also includes other protocols such as the MUX Spot Trading Protocol, which allows traders to trade spot markets with low fees and deep liquidity, and the MUX Perpetual Protocol, which offers perpetual contracts with up to 100x leverage.
The data provided by Flipside has been used to handle this analysis.
To evaluate the performance and application of the MUX Protocol on the Avalanche blockchain, the following methodology has been adopted:
- The activity of MUX Protocol has been determined based on:
- Volume of transactions
- Daily users and attraction of new users
- Collected fee in USD
- Besides the mentioned metrics, the application of MUX Protocol has been evaluated by considering various features on the Avalanche network like:
- Detailed analysis related to the liquidations
- Events on the MUX Protocol
- Retention of MUX users on the Avalanche
- Distribution of users by age of wallets and their activity on MUX Protocol
- Crossover with other projects/platforms on the Avalanche
