High-Level Understanding

Before using MegaBanX, it is helpful to understand these foundational concepts that underpin the protocol.

The MegaBanX protocol is designed to be intuitive for users familiar with perpetual trading, but it also introduces unique mechanisms for liquidity, competition, and rewards.

Key Concepts

• Perpetual Trading: Understanding how contracts without expiration work.

• USDC Collateral Model: Why we use a single stablecoin for all trades.

• Isolated Liquidity Pools: How separate pools manage risk for each market.

• Funding Rates: The mechanism that tethers perp prices to spot prices.

• Liquidation Model: How the protocol protects itself from solvency risk.

• Performance & Competition: How trading skill is gamified and rewarded.

• Copy Trading: The symbiotic relationship between Leaders and Followers.

• Rewards & Alignment: The role of the MBX token.