MUX Protocol (MCB)

Trading Features

MUX Protocol is a decentralized perpetual trading aggregator that automatically routes trades to the best liquidity sources across multiple chains. It offers up to 100x leverage, zero price impact trading, and optimized liquidation prices by supplying additional collateral. Traders benefit from deep aggregated liquidity, minimized trading costs, and diverse market options.

Liquidity and Yield

MUX Protocol uses native liquidity pools with customizable strategies and market exposure. Liquidity providers (LPs) can earn additional yield through market-neutral vaults and DEX mining. The protocol unifies liquidity across networks, improving trading efficiency and reducing counterparty risks.

Cross-Chain and Aggregation

The protocol aggregates liquidity from multiple integrated sources and chains, ensuring optimal trade execution. Its broker module monitors liquidity and manages capacity to cover trader profits, supporting seamless cross-chain margin trading.

Protocol Revenue and LP Benefits

LPs can gain hedged market exposure and share in protocol revenue. The protocol also distributes muxTokens as profits when liquidity on a chain is insufficient, which can be redeemed across chains.

Innovation and Decentralization

MUX Protocol continuously innovates in perpetual trading aggregation and plans to decentralize its multiplexing layer, governed by veMUX holders, to provide oracle and broker services.

Advantages

• Lower fees compared to competitors like GMX and GNS, making trading more cost-effective.
• Zero price impact trading with up to 100x leverage, allowing traders to amplify their positions.
• Aggregated liquidity from multiple protocols ensures consistent and well-priced trades.
• Multi-chain native protocol unifying pooled liquidity across different blockchains for better capital efficiency.
• Users trade directly via their Web3 wallets, maintaining full control over their assets.
• Wide range of markets available, including crypto, forex, and commodities.
• Staking options (e.g., MCB tokens) allow users to earn rewards and support the platform.
• Lightning-fast execution and smart position routing improve trading experience.
• Protocol income and rewards for liquidity providers through MUXLP tokens.

Disadvantages

• Limited adoption and relatively low awareness compared to other DeFi trading platforms.
• Complex token system with four different tokens (MCB, MUX, veMUX, MUXLP) which may be confusing.
• Trading fees and volume have seen some recent declines, indicating possible competition pressure.
• Features and services are not available to US persons and certain restricted users.
• The protocol is still growing and may not yet have the same level of liquidity or user base as more established platforms.

Founders

MUX Protocol was launched in 2019 by Jie Liu.

Investors in MUX Protocol

MUX Protocol has raised funds through multiple rounds, including a notable raise of $7,000,000 in May 2021 and $4,925,700 in October 2023. The investors include lead institutional investors and private parties who negotiated private prices for the token, typically at $10 per token before public trading. These investors are usually high net worth individuals or institutions involved in the crypto space.

Funding Details

The project has conducted public and private sales, with the public price initially set at $10. The private price was also $10, reflecting agreements with early investors. These funding rounds helped support the development and expansion of MUX Protocol.

Token and Governance Investors

Holders of the MCB governance token, which has a total supply of 4.8 million tokens, participate in governance decisions and share in protocol revenue. This token distribution includes investors who support the protocol’s growth and governance.

Halal Status of MUX Protocol

Based on available information, there is no specific Shariah compliance rating or halal certification mentioned for MUX Protocol. Since MUX Protocol involves leveraged trading up to 100x and decentralized finance features, it may include elements like speculation and leverage that are often considered non-compliant with Islamic finance principles.

Reasoning

• Islamic finance prohibits interest (riba), gambling (maisir), and excessive uncertainty (gharar).
• Leveraged trading and high speculation can be seen as gambling or excessive uncertainty.
• No explicit halal certification or screening for MUX Protocol is found in the provided halal crypto lists or reports.

Answer: No, MUX Protocol is not confirmed halal based on the available information.