MYX Finance is a non-custodial decentralized derivatives exchange (DEX) that facilitates the on-chain trading of perpetual contracts. The protocol is designed to provide a trading experience with high capital efficiency and low slippage, utilizing a proprietary Matching Pool Mechanism (MPM) instead of a traditional order book or Automated Market Maker (AMM) model. ^{[1] [2]}

Overview

MYX Finance aims to replicate the performance and user experience of centralized exchanges (CEXs) within a decentralized framework. The platform's core objective is to offer zero-slippage trading, low fees, and high leverage for perpetual futures. It operates on several Ethereum Virtual Machine (EVM) compatible blockchains, including Arbitrum, Linea, and BNB Chain. The protocol was incubated by D11 Labs and is designed to be permissionless and community-driven. ^{[3] [4]}

A key feature of the platform is its use of "chain abstraction," which allows users to deposit collateral from over 20 different blockchains, including non-EVM chains like Solana, into a single account without manual bridging. This is coupled with a gasless transaction system, where a relayer network covers gas fees on behalf of the user, simplifying the trading process. The protocol is non-custodial, meaning users retain control of their funds through smart contracts. Security is addressed through smart contract audits from firms such as SlowMist and PeckShield, a multisignature mechanism for critical operations, and decentralized management to avoid single points of failure. ^{[1] [2]}

History

The official X (formerly Twitter) account for MYX Finance was established in June 2023. On November 28, 2023, the project announced the completion of a $5 million seed funding round at a $50 million valuation. The round was led by HongShan (formerly Sequoia China) and included participation from Consensys and Hack VC. ^[3]

Following the funding announcement, the project launched the first phase of its testnet on the Linea Goerli network on November 29, 2023, with a second phase following on December 26, 2023. The MYX Finance mainnet officially went live on the Arbitrum network on February 18, 2024. The project has also engaged in community-building activities, such as the "Ordovician Campaign," a giveaway event co-hosted with OKX Web3 Wallet in April 2024. ^[3]

Technology

MYX Finance's architecture is built around several key technological components designed to enhance capital efficiency and user experience. The protocol's smart contracts are written in Solidity, indicating its compatibility with EVM-based networks. ^[5]

Matching Pool Mechanism (MPM)

The core of the MYX protocol is its Matching Pool Mechanism (MPM). Unlike traditional DEXs that rely on order books or AMM liquidity pools, the MPM functions as a shared liquidity pool that internally matches long and short positions. When a user opens a trade, the protocol initially takes the opposite side of the position and then seeks to pair it with an opposing trade from another user within the pool. This model concentrates liquidity and rebalances exposure internally, which allows the protocol to support an open interest value that can exceed the total funds locked in the pool. The primary benefit of this system is the ability to execute large trades with minimal to zero price slippage, which the platform claims saves traders between 0.015% and 0.03% in costs compared to other models. ^{[1] [6] [2]}

Chain Abstraction

MYX Finance implements chain abstraction to create a seamless cross-chain trading environment. This technology enables two primary features:

• Cross-Chain Collateral: Users can deposit assets from over 20 supported blockchains into a chain-abstracted account abstraction (AA) wallet. These assets can then be used as collateral for trading on any of the execution networks (like Arbitrum or Linea) without requiring the user to manually bridge or swap tokens.
• Gasless Experience: The protocol utilizes a relayer network that pays for transaction gas fees on behalf of the user. These costs are then settled in the user's preferred currency, removing the need for users to hold the native gas token of the execution chain and making order execution feel more instantaneous. ^{[1] [4]}

Security and Risk Management

The protocol has undergone smart contract audits by third-party security firms SlowMist and PeckShield. In addition to audits, MYX Finance has implemented a suite of risk management tools for its liquidity vaults to protect liquidity providers (LPs). These tools include:

• Time Traveller: A system designed to ensure the retrospective execution of trades during market anomalies.
• Live Surveillance: A real-time monitoring system for platform assets and liabilities.
• Auto-Deleveraging (ADL): A mechanism to manage the platform's total open interest and protect against liquidity crunches.
• Risk Reserve: A dedicated fund established to cover potential unexpected losses. ^[2]

Integrations

The platform integrates with several external services to support its operations. Market data and price feeds are provided by the Pyth Network oracle. For cross-chain asset transfers, the protocol utilizes bridging functionality powered by Across Bridge. ^[2]

Tokenomics

MYX Finance has a native utility and governance token, MYX, which operates on the BEP-20 standard on the BNB Smart Chain. The token has a fixed maximum and total supply of 1 billion. ^[7]

Utility

The MYX token serves several functions within the ecosystem:

• Governance: MYX holders can participate in on-chain governance by voting on proposals to adjust protocol parameters, such as fee structures, risk limits, and the addition of new supported chains.
• Staking: Users can stake MYX tokens to earn a share of the net trading fees generated by the protocol.
• Fee Discounts: Holding MYX tokens provides users with access to a tiered VIP program that offers trading fee reductions. According to the project, holding as few as 10 MYX can result in discounts of up to 70%. ^{[1] [4]}

Token Distribution

The total supply of 1 billion MYX tokens is allocated to various stakeholders and ecosystem initiatives. The distribution is as follows:

• Ecosystem Incentives: 40%
• Core Contributors: 20%
• Investors: 17.5%
• Airdrop: 14.7%
• Initial Liquidity Provisioning: 4%
• Community Round: 2%
• Foundation Reserve: 1.8% ^[1]

Controversies

September 2025 Price Surge and Manipulation Allegations

In early September 2025, the MYX token experienced extreme price volatility, surging nearly 1,400% in one week to reach an all-time high of approximately $18.42 on September 10. This event drew significant attention and led to allegations of market manipulation from web3 commentators and analysts. ^[6]

Several factors were identified as potential catalysts for the price rally. On September 5, 2025, MYX Finance announced its intention to list perpetual contracts for the World Liberty Financial (WLFI) token, a digital asset associated with U.S. President Donald Trump. Shortly after, data from Binance Wallet, published via Binance Alpha, highlighted MYX as one of the top-performing airdrops, noting that early recipients saw significant returns on their initial allocation. This publicity was followed by an aggressive short squeeze between September 6 and September 10, during which $89.51 million in short positions were liquidated, compared to $23.45 million in long positions, creating intense upward price pressure. During this period, MYX futures open interest exceeded $400 million. ^[6]

The rally was met with skepticism. Observers pointed to unusually high daily perpetual trading volumes, ranging from $6 billion to $9 billion, and suspected coordinated activity by large holders across multiple exchanges. The situation was described on social media as a "scam pump" and a "crime scene." Adding to the suspicion was a concurrent unlock of 39 million MYX tokens, which led to speculation that early investors may have orchestrated the event to sell their holdings to retail traders at inflated prices. Technical indicators, such as the daily Relative Strength Index (RSI), reached levels between 89 and 97, signaling extremely overbought conditions and leading analysts to predict a potential price correction of 70% to 85%. ^[6]