Navigating the headwinds.
About 5 months after our Beta Testnet launch, EMDX just announced its Mainnet launch date for June the 20th, 2022
Although it is pretty clear it might not be the best go-live moment, start-ups usually should respect -when possible- some growing stages, avoid being stuck within each of them and keep moving on.
At EMDX, after proper preparation stages, we feel strong enough and ready to go into production mode. In other words, we can not stay at the gate and wait for the market to “recover”.
From an investor perspective, you might assume a “wait & see” outlook, but it’s not that simple when running a project: every dead time makes a deep dent in your budget.
As many of you know, the crypto industry is not the right place if you want to always feel comfortable. Market volatility and its inner complexity makes building in crypto one of the hardest and most challenging jobs to deal with.
That is why we decided to push forward and confront the environment and market downturn.
Adapting to endure
Setting in motion a derivative DEX protocol is not all about technical stuff.
On one hand, there are many stakeholders, such as our Community, Partners (market makers, liquidity providers, arbitrageurs and infra / market data providers), Investors, and 3rd Party Services, among others, whose functions and interests we have to orchestrate.
Of course doing so under this tough context has become harder, since most of them have rearranged their priorities forcing us to adjust (on the fly) timelines, commitments and expectancies.
Firstly, we had to reschedule our IDO event. Originally it was planned to take place ~1 month after mainnet launch. But, as most of us will agree, promoting an IDO under this crypto economic downfall would not make financial sense for the future of EMDX and will definitely harm the token value, hence the community wealth.
Second, most of our market makers and liquidity providers slashed their allocations in DeFi protocols and reassessed their risk tolerance, so we had to adapt some of our business goals and system settings to their new strategies.
In addition, some forecasted financial / operational parameters, like EMDX daily turnover, open interest, WAU (weekly active users) and liquidity to be provided by our market makers / arbitrageurs will shrink significantly. The following charts can provide a framework reference on the impact that this market tumult had on the derivative sector:
However, as they say “it is not the strongest of the species that survive nor the most intelligent, but the one most responsive to change”, that is the reason why we are going to launch but with some “safety precautions”, in order to protect the whole EMDX ecosystem.
Initial markets at launch
On June the 20th EMDX is going live with 3 perpetual markets: BTC/USDC, ETH/USDC and AVAX/USDC. In a second stage, after the app achieves 100% guaranteed stability, spot markets and other perpetual pairs will be added.
Maintenance and Calibration
On June the 27th (one week after mainnet launch) there will be a maintenance and calibration check point, which is expected to last for up to 5 hours.
Caps
There will be caps for order sizes and notional exposure for every account, along with global limits on open interest per pair and maximum price fluctuations per block per pair. All these risk management tools will be healthy to ensure reliable trading and avoid the impact of the very likely market volatility over the next few months.
Disclaimer
Market conditions may worsen, so we have to be prepared to face this scenario. Depending on how bad the conditions are, EMDX protocol may take different protective measures, even postponing the mainnet launching date or a trading halt decision.
Thank you for your constant support thus far, and looking forward to working with you and building EMDX together!
Best,
The EMDX Team.
