Maladex

the wind of change

Launch App White Paper

Partners

Features

Revolutionary Ideas = Revolutionary DEX

Capital Efficiency

Making the best use of every drop of liquidity from geometric allocation (akin to Uniswap V3 concentrated liquidity) to our novel algorithmic automated market maker having liquidity to adjust to market conditions maximizing maker gains and optimizing taker exchange rates.

Risk Control

Baking safety mechanisms into the protocol removing any maker losses due to arbitrage, fuses to prevent pool drains in the black swan events, and whistleblowing to alert of suspicious projects. On-chain Oracles tracking risk exposure metrics.

Superior Data

High-frequency data warehouse and streams allow for backtesting, strategy development, and development of novel applications using Maladex protocol. Derivation of advanced quantitative indicators used directly in algorithmic trading strategies.

Algorithmic Trading Protocol Fibres Woven Into Each Maladex Protocol

Alpha Generation

Generating novel ways to put capital to work leveraging all Cardano protocols combined with superior on-chain analytics and access to advanced trading strategies. From yield aggregation to algorithmic trading strategies employed by the best hedge funds and market makers in the world.

Accessible

Democratising access to superior investment strategies for everyone regardless of invested capital. Deposit as much as you want, withdraw whenever you want, either in current portfolio allocation or convert back to ADA.

Marketplace of Ideas

A lossless framework and platform for development of algorithmic trading strategies. Everyone can develop a trading strategy against money lended from strategy vaults. Superior data and on-chain indicators give the ability to develop superior strategies.

Financial Revolution

Wide Adoption

Bringing financial rigour, required instruments and analytics, as well as engaging with regulators to increase the adoption from institutions and retail investors. Development of an education platform increasing knowledge of DeFi users and nurturing the dev quant talents of tomorrow who will discover and implement novel ways of generating alpha.

Research and New Frontiers

Rigorous formalisation of existing DeFi concepts and researching novel ways of generating returns and building DeFi protocols. Moving the entire Cardano DeFi ecosystem forward and growing the entire cake, instead of just cutting a chunk of it.

Powerful Tokenomics

All Maladex functionalities - swaps, yield farming, access to high-frequency data and Oracles, derivatives and synthetics minting, incentivization of educational content, access to advanced analytics all are tied to a single platform token. In the future, including own accounting layer built using hydra head.

Roadmap

Check also the old infographics for more information about Maladex tokenomics: Maladex tokenomics infographics.

Frequently Asked Questions

DEX is an exchange that operates on the blockchain, which means it's trustless and not property of any corporation. Anyone can interact with it’s smart contracts, it never stops, and is fully automated.

(thanks to @mikewday)
We believe that a sound financial system needs to be built on a sound blockchain. Cardano addresses many shortcomings of the so-called gen 2 blockchains (such as Ethereum and Binance Smart Chain) from fees, through network scalability (via Hydra) and governance (Voltaire and the Catalyst project), and having one of the most sound communities (critical, no or very little FUD and FOMO), to having the power of Haskell, Plutus, and formal verification behind it.

Moreover, over 70% of the ADA in supply is staked, which is optimal for developing in an ecosystem with relative price stability and conveys a long-term commitment to the project from the majority of its holders.
We believe that all other DEX offerings are inherently inefficient. That is that they consume far more resources than is necessary and are costing users. We believe we have the experience in quantitative mathematics and financial haskell development to deliver a DEX that is far more efficient than others. A more efficient use of capital will result in better returns, better user experience, and will better reflect the actual state of the market. The DEX of tomorrow.
(thanks to @NikodemZegzd)
Our current timeline is to launch by the end of this year. This is subject to there being secure browser-integrated wallets available and sufficient time for code audit .
Mal is a Daemon, and daemon is a program which runs in the background performing tasks automatically for the user. He is the perfect representation of how our programmable swaps work. As programmable swaps are fundamental building blocks of Maladex, daemons underpin the architecture of more advanced (and higher level) DeFi features - passive investing (Cardano indexes), active investing (strategy vaults trading complex algos like in hedge fund), synthetics, derivatives, option strategies, and much more. This means that Mal is our best friend and the core of our DEX, hence our mascot.


Neo... we live in an NFT collection.

... you take the blue pill...the story ends, you wake up in your bed and believe whatever you want to believe.

You take the red pill...you stay in Wonderland, and I show you how deep Cardano NFTs go.

For Tech Heads

  1. Eliminate all impermanent loss and increase capital efficiency way beyond the current benchmark.
  2. Create a living proof of how superior EUTxO is compared to the account-based model.
  3. Use our quantitative knowledge to build the first mathematically sound DEX which can scale well beyond the current applications in DeFi.
  4. Implement a novel approach to on-chain trading — programmable swaps allowing us to implement strategies such as DCA from USD to ADA over 30 days, trigger trade of X when the price movements by Y in Z hours, etc.
  5. Provide comprehensive education and introduction to DeFi for Cardano users, which when combined with our DEX will help them make as sound investment decisions as possible.
  6. Build a great community around the project that supports each other with idea sharing, observations, and analysis.
  7. Be the place where the smart money knows their money is being put to work.
Maladex is going to be both consumer and producer of Oracles.

Mathematically sound and timely Oracle data is necessary for implementation of collaterised synthetics, indexes rebalancing, and trading strategies, and more.

Maladex as an exchange with the highest capital efficiency will be able to provide the most timely and accurat Cardano-native asset prices, and we will make this information available to other projects, via Oracles in the future.

Additionally, Maladex is going to provide a series of trading indicators from the classical weighted moving price averages, divergence indicators, etc. to advanced quantitative data streams, similar to those used by the most sophisticated hedge funds in the world, advanced momentum based indicators (distribution momentums up to 6th order), Greeks, etc.
Impermanent loss (IL) is the loss due to change in token ratio. In Uniswap v1/v2 (basically every other Cardano DEX white paper atm) liquidity is extremely inefficiently allocated.

x * y = const means you provide liquidity at extremely unlikely scenarios, e.g., assuming that we take the market of pizzas to USD, in x * y = const the same amount of liquidity to buying and selling pizzas is provided at the price of $1B per pizza as for the $20 per pie scenario.

As you can imagine we aren't likely ending up anytime soon or ever buying pizzas for $1B, but x * y = const treats this as a likely event as buying pizza for $20 today. That liquidity allocation comes from the liquidity curve.

This problem can be solved almost completely by concentrating liquidity where the market is, e.g. in the above scenario providing 67% of liquidity $19-21, 28% in $15-25, 5% in $5-35 ranges. Such allocation is called geometrical and describes the natural price dynamics.

So, you'd say there won't be IL at all on Maladex. But, that's not the only thing we'll be doing on Maladex for good and profit. Another thing is when you'll be providing liquidity we'll advise you on what pairs are the best to form, at what ranges, etc. based on the on-chain data.
Comprehensive analysis of source code to discover any bugs, security breaches, and violations of good design standards. For DEX (and any DApp) it's audit of smart contracts code with focus on vulnerabilities known to specific programming language and financial operations.

Any complex software often can end up in billions of different states, hence comprehensive audit will involve automated code scanning for known vulnerability patterns and state exploration for invalid states, and more. In the case of Plutus formal proofs might be written as well.

Proofs guarantee that certain properties hold absolutely, but proofs are much more time consuming to write (and more expensive). Audit should end with an audit certificate, giving rating of each vulnerability found on severity scale and recommendations to the project.

Usually after the first round the project will work to resolve major vulnerabilities and be audited again. Any change in (smart contract) code can result in new vulnerabilities introduced to the whole system, hence it's essential to structure code well.

For critical parts (e.g. dealing with movement of money) as in contrast to routing transactions to not change after an audit.
Many projects offer multi-asset pools and use basically the same inefficient x * y = const formula, but in N-dimensions, i.e. x * y * z * w * ... = const. Where each variable on the left-hand side is an asset. As such in this form it's the well-known capital inefficient pool, but now it's even more inefficient due to poor price discovery in such high-dimensions (see curse of dimensionality). On the other hand, grouping similarly behaving assets (e.g. all USD stablecoins) into one actor and connecting it's liquidity to any other side of the pair that needs it is increasing efficiency. This is a feature which is planned for far into the future.