This guide provides a technical overview of the MYX Finance Official protocol, focusing on its core innovation—the MYX Matching Pool Mechanism (MPM)—and how it enables a superior trading experience on the MYX on Arbitrum network.
Step 1: The Problem with Traditional DEX Models
AMMs: Suffer from price impact (slippage), especially on large trades.
Orderbooks: Can have thin liquidity, leading to wide spreads and difficulty in getting orders filled at a good price.
Step 2: The MPM Solution
The MPM is a novel mechanism designed to offer the best of both worlds.
Mechanism: It combines a traditional liquidity pool (MYXLP Liquidity Pool) with a smart matching engine. When a trade is initiated, the MPM seeks to match it against pending opposing trades within the system before tapping into the main liquidity pool.
Result: If a 10 ETH long can be matched with a 10 ETH short, the trade can be executed with MYX Zero Slippage. Only the net-unmatched portion of trades interacts with the main pool, drastically reducing price impact for traders and risk for liquidity providers.
Step 3: How to Interact with the System
When you Trade on MYX Finance, you are interacting with a single router contract. This contract handles the complex logic of the MPM engine.
You submit your desired trade.
The router first attempts to match your trade via the MPM.
Any remaining size is executed against the MYXLP.
This process provides a simplified developer experience while delivering optimal execution for the user.
Step 4: Security and Fees
The question "Is MYX Finance Safe?" is answered by its audited smart contracts and the robust design that minimizes risk for the MYXLP. The MYX Trading Fees are competitive, as the MPM reduces the cost of liquidity provision, and a portion of fees are distributed to those who Stake MYX, creating a sustainable ecosystem.
For all router contract addresses and architectural details, refer to the Full Official Documentation.
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