Mu Exchange is a leverage trading platform on the Gnosis Chain, a decentralized and permissionless blockchain operated by a global community. It aims to provide a secure and transparent environment for leverage trading.^[1]

Overview

Mu Exchange, launched in November 2023, is a leverage trading platform on the Gnosis Chain, a decentralized and permissionless blockchain. It aims to be the first Perpetual Decentralized Exchange (Perp DEX) to offer leverage trading with a yield-bearing token, $sDAI, as collateral. Users can continue earning the DAI Saving Rate yield while trading and maintaining open positions. The TripleEarn $sDAI Vault allows users to deposit $sDAI to earn trading fees and the DAI Saving Rate yield concurrently.

Mu Exchange strives to provide a transparent and fair trading experience with features such as guaranteed stop losses, fixed spreads, and liquidations only at over 90% loss. Trading is conducted directly from users' wallets, ensuring asset custody without the need for KYC. The platform seeks to combine the simplicity and features of centralized exchanges with the security and benefits of decentralized finance. ^[1][2]

$xDAI

xDai tokens are the native tokens on the Gnosis Chain, used for executing smart contracts and paying gas fees. xDai is generated when Dai is sent to the xDai bridge, where bridge validators mint xDai as part of the Gnosis reward native contract. This stablecoin serves as the native currency and gas token of the network. xDai is required for trading on Mu Exchange.^[3][4]

$sDAI

sDAI is an interest-bearing stablecoin used as collateral for trading and liquidity on Mu Exchange. It represents DAI in the Dai Savings Rate (DSR) module, allowing users to earn yield from the Maker protocol. Conversion between DAI and sDAI can be done through the DSR module without using a decentralized exchange (DEX).^[3]

Products

Staking

On Mu Exchange, users can stake $sDAI into the sDAI Vault to participate in earning a portion of trading fees. The vault functions as a counterparty to trades, with the vault’s balance affected by traders' profits and losses. Stakers receive $msDAI, which represents their share of the vault. The vault’s performance depends on the overall trading results, and it is safeguarded by adjustable maximum open interest limits.

Staking requires $xDAI for gas and confirmation through a web3 wallet. Rewards are automatically reflected in $msDAI holdings, and users can withdraw $sDAI with a 24-hour cooldown by selecting "Unstake."^[5]

Trading

Mu Exchange supports trading in various asset classes, including cryptocurrencies, equities, forex, metals, and rates, with specific market hours for each. Cryptocurrencies trade continuously, while equities adhere to NYSE hours, and forex and metals are available from Sunday 5PM ET to Friday 5PM ET.

The platform uses Pyth price feeds, and gaps in pricing may affect stop losses. To trade, users must connect a web3 wallet, use $xDAI for gas, and $sDAI for trading. Trade parameters include direction, order type, leverage, and slippage tolerance. Mu Exchange incorporates risk management measures such as slippage tolerance and circuit breakers. Fees include transaction costs and spreads, with synthetic trading models imposing limits on open interest to manage risk. Funding fees are charged based on the position size and direction.^[6][7]

Keepers

Keepers are automated systems responsible for executing trades and maintaining operational stability on Mu Exchange. They monitor the platform for anomalies such as slippage or potential manipulation, aiming to address these issues to uphold a secure trading environment. While they operate within defined parameters, users can access reports detailing keeper activity to understand their functions.^[9]

Referral Program

Mu Exchange's referral program allows users to earn rebates on the trading fees of referred users and provides fee discounts to those users. Referrers can receive up to 20% of the trading fees paid by their referrals in $sDAI, while referred users may benefit from a discount of up to 20% on their trading fees. ^[8]