The innovative design of the decentralized derivatives trading exchange MUFEX

Decentralized derivatives trading exchange MUFEX ( Most User Friendly EXchange ) aims to address several key issues: how to expand the audience for decentralized contract exchanges? How to provide a user experience similar to centralized exchanges while ensuring asset security? How to combine the advantages of GMX and dydx?

The core mechanism of MUFEX includes:

1. Asset self-custody model, allowing users to enforce withdrawals themselves.
2. Adopt an Account Abstraction (AA) wallet solution, supporting more convenient login methods such as Google login.
3. Hybrid order book system, combining passive market makers and traditional market makers

These mechanisms bring the following advantages to MUFEX:

Asset Self-Custody

Recently, after the trust crisis of centralized exchanges, users' demand for asset security has significantly increased. MUFEX's asset self-custody model directly addresses this issue, providing users with higher asset security guarantees.

Account Abstraction Wallet Solution

Traditional decentralized exchanges face user growth bottlenecks, mainly due to the complex wallet usage barriers. MUFEX adopts abstract account wallets, significantly lowering the user threshold, allowing users to log in and use the platform as conveniently as Web2 products. This innovation is expected to help MUFEX attract more users from traditional centralized exchanges.

Hybrid Order Book System

MUFEX combines the advantages of passive market makers (MLP) and traditional market makers. MLP provides foundational liquidity, while traditional market makers offer additional depth through APIs. This hybrid model retains the low slippage advantage of GMX/GNS, while also increasing the overall liquidity and transaction volume limits.

Summary

The design goal of MUFEX is to combine the advantages of multiple parties:

1. The asset security of decentralized exchange
2. User Experience of Centralized Exchanges
3. Low Slippage Trading of GMX/GNS
4. The Composability of GLP
5. The scaling potential of the order book model

However, the success of MUFEX still needs to be validated through market practice, especially in terms of operational capabilities.

Industry Trend Analysis

The decentralized finance (DeFi) sector is evolving towards a better user experience. Although perpetual contracts were initially developed by small teams, later larger exchanges gained a greater market share by optimizing operations and user experience.

For users engaged in frequent contract trading, a good user experience is crucial. Unlike other DeFi sectors, the profit margins in derivatives trading make it worthwhile to invest significant resources into improving the user experience. MUFEX's innovations may trigger more similar attempts within the industry, and it is worth our continued attention to the performance of various forces.