HomeBlockchainMettalex will distribute MTLX to Fetch.ai token owners

Mettalex will distribute MTLX to Fetch.ai token owners

The decentralized commodity trading platform Mettalex has announced the first distribution of MTLX to Fetch.ai’s FET token holders. 

The first million MTLX tokens will be awarded to FET holders as of September 3rd, 2020, in anticipation of the launch of new staking and liquidity pools in the following weeks. 

Mettalex is an exchange built on the Fetch.ai ledger, and is working with a consortium of steel mills, shipping companies, commercial banks and brokerage firms to provide liquidity to illiquid assets. 

On this platform, it will be possible to gain exposure to assets that are not currently traded in conventional markets, thanks to MTLX, which will be distributed to current FET token holders. 

How does Mettalex work

On Mettalex it is possible to create spreads on commodities by taking long and short positions, using the platform’s dual-token solution. The position-based tokens of Mettalex are integrated with reference price feeds, for settlement, and the price of the commodity tokens represent derivatives of the same. Traders can open and close positions using stablecoins as collateral, and trade against other participants or automated market makers. 

The objective of this platform is to bring the commodity market onchain through tokenization, with liquidity that enables automated market making, and a level of governance that rewards LPs with MTLX governance tokens. 

To achieve this they are working together with a consortium of steel mills, shipping companies, commercial companies, commercial banks and brokerage firms to digitize commodity markets by bridging offchain assets such as copper, gold, silver and other metals. 

The Commercial Director of MTLX, Philip Price, said: 

“Through this system, the entirety of collateral of an asset does not need to be tied up in a smart contract, which allows contracts of much larger sizes to be traded with lower collateral requirements. Trillions of dollars of trading and new markets can be unlocked through Mettalex and we are avidly growing our community and ecosystem to reach this goal”.

The CEO of Fetch.ai, Humayun Sheikh, added: 

“On Mettalex, individuals and institutions will be able to take on exposure on assets that are not traded in conventional markets today. We have seen banks fall out of love with the commodity markets, which has created a vacuum for commodity finance. By bringing traditional instruments such as commodities swaps, futures or even commodity finance into DeFi, Mettalex will be an especially valuable tool for traders who want to create spreads and take exposure on commodities”.

Marco Cavicchioli
Marco Cavicchioli
Born in 1975, Marco has been the first to talk about Bitcoin on YouTube in Italy. He founded ilBitcoin.news and the Facebook group" Bitcoin Italia (open and without scam) ".