Introduction to Demex

Decentralized Mercantile Exchange, or Demex, is a cross-chain platform designed to be the comprehensive DEX for users, supporting a wide array of features including spot, perpetuals, futures markets, and a cross-chain money market. Operating on the Hyperliquid L1 blockchain, Demex boasts high performance with 1 second block latency and supports up to 20k orders per second, thanks to its use of Tendermint for consensus.

Lend milkTIA on Demex

To lend your milkTIA tokens on Demex, follow these steps:

  1. Access Demex Nitron Protocol: Navigate to Demex platform (opens in a new tab).
  2. Connect Your Wallet: Connect the wallet holding your milkTIA tokens.
  3. Deposit milkTIA: Visit the deposit page, select milkTIA for deposit, enter the desired amount, and confirm to initiate an IBC transfer from Osmosis.
  • 💡 Tip: If you lack native $SWTH for gas fees, switch the gas token to milkTIA, TIA, or others in Settings.
  1. Start Lending: On the Nitron page, choose milkTIA, specify the amount for lending, confirm your action, and begin earning interest.
  • 💡 Tip: Enable your deposit as collateral to borrow other assets.

Borrow on Demex

To borrow assets on Demex:

  1. Borrow: From the Nitron page, select the asset you want to borrow, input the amount, and proceed.
  2. Confirmation and Monitoring: Confirm the transaction. Once processed, utilize the borrowed assets for DeFi opportunities and monitor your position’s health directly on Nitron.

Prevent Liquidation

Regularly monitor your health factor on the Nitron page to mitigate liquidation risks. It’s crucial to understand how the health factor is calculated and the circumstances that lead to liquidation. Demex’s guides offer comprehensive insights into these aspects.

To Lend or To LP

Choosing between lending on Demex and LP-ing on Osmosis involves considering different investment strategies and the risk of impermanent loss.

  • Different Investment Strategies: Lending allows you to borrow assets for various DeFi activities, enabling sophisticated investment strategies. In contrast, providing liquidity on an AMM DEX earns interest through trading fees but ties your assets to a specific pool.
  • Mitigation of Impermanent Loss: Liquidity provision involves the risk of impermanent loss, especially in volatile markets. Lending exposes you to a single asset, potentially reducing the risk associated with price discrepancies between paired assets in a liquidity pool.

Disclaimer: This content is not financial advice. Conduct your due diligence before participating in any protocols mentioned.