Mettalex, a spin-off from Fetch.ai, announced on Friday that it has officially launched a decentralized commodity trading exchange, which is another compelling use case of how blockchain technology disrupts traditional funding.
The new exchange aims to disrupt the commodities market through blockchain applications and other emerging technologies like machine learning and the Internet of Things. Mettalex is designed to improve existing automated market makers and blockchain oracles. The company has stated that its automated market markers act as a party to all deals and ensure that the platform is fully secured.
The exchange will initially provide access to a variety of commodities, including lithium carbonate, steel, zinc, iron ore, natural gas, and BTC / gold spreads.
When the platform debuted, Mettalex also announced Javelin Global Commodities, a trading company for thermal coal and other commodities, as its first customer.
Mettalex is accessible to everyone 24 hours a day, 365 days a year. When asked how to balance round-the-clock trading with the set schedule of major commodity exchanges such as the Intercontinental Exchange and the New York Mercantile Exchange, the company told Cointelegraph that it will remain open, “based on the most recent Reported price in real world markets are closed. ”
The company stated:
“The prices for long / short positions at Mettalex during this time can still vary depending on the user mood, but only the price reported by oracles can regulate a market.”
Mettalex also clarified that its markets are based on oracle-reported data from spot and futures markets and do not offer any physically settled goods.
When asked about the regulatory implications of its platform, particularly in the US, Mettalex said it was responding to legal advice from its attorneys. “At first we don’t expect US participants,” said the company.
On the subject of decentralization, representatives of the company stated that this means “no counterparty and not a single control point”.
The decentralized exchange has become one of the hottest growth stories for decentralized finance in the past year. Currently, more than $ 53 billion is tied to DeFi, with DEX making up a large portion of the total.
Humayun Sheikh, CEO of Fetch.ai, believes that the inclusion of goods in decentralized exchanges will improve the transparency of price data. “By making this type of market information and the ability to trade more accessible, Mettalex aims to bring one of the oldest forms of trade in human history into the present century,” he said.