MCDEX is a decentralized exchange (DEX) that aims to offer perpetual swaps trading. Perpetual contracts are based on margin, which allows leverage. The MCDEX Perpetual contract provides up to 10x leverage, by using a funding mechanism that keeps prices anchored to an index. Unlike traditional perpetual contracts such as those offered by BitMEX or Binance Futures, the MCDEX perpetual contract is decentralized which provides opportunities to build new kinds of decentralized financial products and services.

MCDEX relies on AMM to provide liquidity and calculate the funding rate. Both long and short traders can acquire positions by trading against the AMM. The pricing formula of MCDEX’s AMM provides a continuous depth for market making and adjusts the price according to market demand. To supplement this, MCDEX also offers an off-chain order book because of its superior liquidity. The demand for trades in the off-chain order book is passed on to the AMM through the arbitrageurs, thereby changing the fair price of the AMM and indirectly affecting the funding rate. Through this method, the formulas embedded into the AMM will create a reliable Mark Price and Funding Rate which is done fully on-chain. MCB is its governance token which allows voting on numerous matters such as modification of contract parameters.