Base is an ecosystem that no project wants to ignore when wanting to expand its user base. Morphex is no exception. After being quite successful on the BNB chain and Fantom, Morphex immediately built MorphexBMX on Base to provide users with the smoothest Perpetual trading experiences. So what is more special about MorphexBMX than other projects? Let’s find out together in this article.
To understand more about MorphexBMX, you can refer to some of the articles below:
- What is GMX (GMX)? Overview of GMX Cryptocurrency
- GMX And Its Expansion Plots On Arbitrum
MorphexBMX Overview
What is MorphexBMX?
MorphexBMX is essentially a development branch on Morphex’s Base Blockchain. The project is a decentralized exchange that provides Perpetual trading for users. You can imagine that MorphexBMX has a mechanism of operation quite similar to GMX v1.
Mechanism of action
Similar to GMX V1, MorphexBMX is also a play for liquidity providers and traders through Chainlink and Pyth’s price feed.
First, users provide liquidity into the project Pool with Tokens wBTC, wETH, USDC and receive back BLT tokens that represent the value of the user’s assets deposited into the Pool. MorphexBMX will base on the market situation to determine the ratio of asset types in the Pool. When users deposit assets into the Pool, it will be automatically converted into the corresponding asset types according to the determined ratio.
Users participating in trading on MorphexBMX will be provided with different leverage levels and according to price data provided from Chainlink and Pyth. The source of assets used to provide liquidity for transactions will come from the pool.
Looking at this model, we will see that liquidity providers will bear a lot of risk due to price fluctuations of assets in the pool and when Traders make profits. To compensate for this, MorphexBMX shares 60% of project revenue and 15% of oBMX to BLT holders.
BLT holders will be able to deposit BLT into the Vault and receive wBLT (a wrapped token of BLT). When depositing BLT into Vault, Vault will automatically harvest profits from the process of providing liquidity and buying back BLT, then deposit it back into Vault to increase profits for LPs. Additionally, when holding wBLT, users can:
- Collateralizing wBLT to borrow other blue-chip assets, and automatically compounding profits earned, can reduce the collateral ratio over time.
- Provide wBLT-BMX pair liquidity to earn 30% more project revenue and 60% oBMX.
- Pair with other token pairs that provide liquidity to gain more profits.
Another new feature of the project is that they release another special token called oBMX, which will be distributed weekly for free to users according to the ratio:
- 15% for BLT holders
- 60% to wBLT-BMX pair liquidity providers
- 25% to wBLT-BMX pair liquidity providers on Base Velocimeter
The oBMX token has two main effects:
- Option 1: Pay to buy BMX with wBLT at a 12% discount
- Option 2: Mint wBLT-BMX LP with wBLT at 25% off 10-day LP lock-in time, 65% off 60-day LP lock-in time.
Project revenue will be used:
- 60% for BLT
- 30% for wBLT-BMX
- 10% for Treasury
Development Roadmap
Update…
Investor
On the project’s website, it is announced that they have partners with projects such as: Defilama, Mises Browser, Debank, Zapper, Firebird, Liquid Driver, OpenOcean, Wonderland, Pyth, Scream, FVM, Thena.
Tokenomics
The project has two types of tokens: BLT and BMX. Where BLT is a token representing the value of users’ assets in the pool. BMX is the main token of the project, used to pay transaction fees.
Token information of MorphexBMX
- Token name: BMX
- Ticker: BMX
- Total supply: 10,000,000
Token Allocation
- Incentive: 70%
- Team: 13%
- Treasury: 8.5%
- MPX Claimable Airdrop: 6%
- Initial Seed Liquidity: 2.5%
Token Use Case
BMX is used to pay transaction fees
Exchanges
You can currently buy BMX tokens on the Velocimeter exchange or join the liquidity offering to receive oBMX and buy at a 12% discount.
Project Information Channel
- Website: https://www.morphex.trade/
- Twitter: https://twitter.com/MorphexBMX
- Discord: https://discord.com/invite/TR7zzfT2ru
- Telegram:
Summary
MorphexBMX is a project with an operating model quite similar to GMX. If people are used to using GMX on Arbitrum, maybe MorphexBMX will be a good choice on Base. In addition to MorphexBMX, Morphex is also a quite famous Perpetual project on Fantom and the project is also very actively expanding its ecosystem.
