Mettalex

Mettalex is the groundbreaking Fetch.ai-powered decentralized derivatives exchange (DEX) that enables commodity market instruments to trade in tokenized forms and enables the buyback of FET^[1]^[2].

Overview

Mettalex is the first real-world Commercial deployment powered by Fetch.ai. The platform launch will increase the utility and demand for the FET tokens. But in this case of the commodities derivatives exchange, MTLX governance tokens will have to be locked up in order to vote on creating new markets. Initially, MTLX tokens will be allocated to FET holders locking up FET in a smart contract^[3]^[4].

The Mettalex created a commodities exchange to enable market participants to gain economic exposure to the spot price and derivatives of commodities and other instruments. This will allow hedging of risk for physical holders of the commodity or leveraged positions for speculators. Positions are taken using specially designed ‘position tokens’.

The main objective is to provide access to risk management tools to a large audience of physical commodity traders. These users currently only have access to risk management tools via financial market intermediaries who charge high spreads and have limited liquidity. Mettalex will change that.

Ferrometrics, Bastug Metallurgy and Javelin Global Commodities are just three of the companies currently involved with Mettalex.

The MTLX governance tokens (MTLX) will be used as follows:

• to vote on system parameters such as choice of autonomous market makers to back with liquidity from the liquidity pool

• vote on the creation of new markets

• the usage of exchange fees

• the percentage of the spread going to the pool

• the buyback and borrowing rates from the liquidity pool

The Mettalex decentralized exchange will also use a fraction of the exchange fees earned on the platform, to algorithmically buy MTLX tokens back from the market^[5].