Mettalex is a decentralized exchange that is focused on the trading of token-based commodities. Accessible with tight trading spreads, low margin requirements and unique hedge instruments that ensure investors cannot be liquidated prior to settlement. It claims to allow access to traditional markets with minimal friction on taking positions and reduced requirements for margin. Mettalex aims to combine the convenience of tokens with market sizes of the commodities world.
Mettalex uses position tokens instead of margin positions offered by conventional trading platforms. These position tokens in turn are backed fully by collateral, adding another layer of stability to the exchange. Mettalex is aiming to solve market failures inherent to today’s commodities market: front running, poor liquidity, price manipulation, and loss of value in the form of margin calls. Mettalex solves this through the creation of what is referred to as position tokens. Position tokens are primarily used to track the difference in the price of an asset. They do not require the entirety of collateral of an asset to be tied up in a smart contract, thereby allowing contracts of much larger sizes to be traded with lower collateral requirements. This is also different from the conventional leverage requirements in traditional markets as the possibility of liquidation is not dependent on the movement of prices until it hits a pre-set price band. Mettalex token is trading in Uniswap.