Announcement: Mooneex MeiSwap officially launched
MeiSwap – Mooneex’s decentralized exchange had been officially launched on May 5 with the first supported trading pair being WELUPS/Mei
Overview of MeiSwap
MeiSwap is a decentralized exchange belonging to the Mooneex exchange system. MeiSwap provides fully automated liquidity. Through Welups Bridge, investors have the opportunity to easily exchange WRC-20 coin pairs or with coins from other platforms.
MeiSwap has officially started operating starting from May 5, 2022, with the first trading pair, WELUPS/Mei, and will soon expand to more attractive trading pairs.
You can access MeiSwap here
Highlights of MeiSwap
Completely decentralized: MeiSwap uses an automatic market maker (AMM), so the process of pricing, trading, and exchanging coins takes place on-chain completely automatically and without interference by any person or organization. This ensures MeiSwarp is a truly decentralized exchange
Low transaction fees: By using the mechanism of Wrapping coins in other platforms via the Welups Blockchain through Bridge, MeiSwap can take advantage of the low gas fees on the Welusp platform. The gas fee for each transaction is fixed at only 0.3% of the transaction value.
Easy issuance of new coins: If you have a coin on the WRC platform and want to release it to the community, MeiSwap will be the ideal place for you to do this. You just need to create a liquidity pool with your coin and another coin or stable coin and you have your own coin distribution channel on MeiSwap already.
Anonymous Transactions: No need to do eKYC and authentication steps like other traditional exchanges (CEX), you can easily use MeiSwap from the website or directly access MeiSwap on your Welups wallet app to make transactions anonymously and securely.
MeiSwap Automated Market Maker (AMA)
With centralized exchanges, to make a transaction, both buyers and sellers are required. If the buyer and seller cannot agree on a common price and quantity, the transaction cannot take place or must be divided into many transactions with different prices and have to pay gas fees many times.
MeiSwap uses automatic market maker (AMM) to completely overcome the shortcomings of traditional trading methods
MeiSwap AMM will create liquidity pools with constant equality
X x Y = K
where X is the initial number of coins X in the pool, Y is the initial number of coins Y in the pool and K is a constant. After each transaction, the ratio between X and Y in the liquidity pool will change, but K will remain the same, thereby creating a new market price based on the ratio of X and Y remaining in the pool.
Example: In the initial pool with 5000 WELUPS and 1000 MEI, the exchange rate of the Mei/WELUPS pair will then be 1 Mei = 5 WELUPS
If you make a purchase of 1000 WELUPS with 200 Mei, after the transaction the amount of coins in the pool will be 4000 WELUPS and 1200 Mei, the new market price will be 1 Mei = 3.33 WELUPS
Volatility will be influenced by two factors: the volume of the transaction and the size of the liquidity pool. The larger the trading volume, the larger the post-trade price change, and conversely, the larger the liquidity pool, the smaller the price change after each transaction.
Currently, transactions according to the traditional order book method are facing many difficulties. On the one hand, because the older generation Blockchains have slow transaction processing speed and high gas fees, on the other hand, the risk when assets are concentrated in the hands of a few people makes crypto investors gradually turn to decentralized exchanges like Mooneex MeiSwap. With its advantages, MeiSwap will soon dominate the cryptocurrency exchange market in the future. Join us today to seize your opportunity!