MDEX

We reject MDEX on size. MDEX is an automated market maker on BSC and Heco. At the 2026-08-14 survey it held about $16.3M in TVL across 55 pools, a sixth of our size floor. One practice advising 100 households moves $1M to $8M into a venue based on the same research. Below the size floor, that book becomes the exit crush. Size alone decides this, whatever the protocol’s quality. If MDEX clears the floor, its LP pools would face the impermanent-loss class rule that rejects the AMM category.

Review triggers: events that reopen the verdict
• TVL sustained above the retired TVL threshold for 30 days

Watched nightly: a warning on its venues or files, or a cited document that changes, reopens the memo. The first confirmation is due 2026-11-15.

The research file

Mechanism applicability

MDEX’s published contract assessment describes factory-created token pairs, swaps against pooled reserves, LP tokens and reward contracts that accept those LP tokens. The live product remains an AMM DEX. Liquidity-mining incentives add exposure to the reward token but do not remove the rebalancing between paired assets.

Current observation and lifecycle

The DefiLlama protocol API read on 2026-08-15 reported approximately $1.30M of MDEX TVL: about $1.30M on BNB Chain, roughly $346 on BitTorrent and zero on HECO. MDEX’s official announcement index records both its BitTorrent deployment and the HECO shutdown and asset-clearance process. The current footprint remains far below the shared v1 size floor and is narrower than the original survey.

Control and exit applicability

MDEX factory and pair contracts define how the AMM executes trades, while farming contracts and privileged roles control incentive programs. LPs exit by burning LP tokens for the pool’s current reserve mix, and they need usable liquidity for both assets. The zero HECO observation and shutdown notice warn about the product’s lifecycle: past use of a chain is not evidence that it remains a live exit venue.

Why the class rule decides

MDEX has approximately $1.30M, below the shared v1 size floor, so we do not open an individual review until it clears that floor. Reopen only after reproducible live MDEX TVL stays at or above the size floor for 30 days on supported, operating chains. That review must reconcile active deployments and contracts, governance and privileged roles, audits and incidents, pool and token concentration, incentives, bridge dependencies, and stressed exits. AMM LP exposure would then face the separate AMM-LP dossier.

Research status

This is a capacity-unproven record for MDEX, not a quality rejection or approval. Reported TVL says how big the venue is, not what the client owns, who can change the rules, or how a position exits at a proposed size. The individual review opens when the protocol clears the size floor.

Sources

The claims above trace to these. Where a number could not be independently verified, the thesis says so.

• MDEX — official contract security assessment · primary · accessed 2026-08-15
  Supports: factory pairs, AMM swaps, LP tokens, farming contracts, privileged roles
• MDEX Docs — deployment and HECO lifecycle announcements · primary · accessed 2026-08-15
  Supports: HECO shutdown, asset clearance, BitTorrent deployment, product lifecycle
• DefiLlama — MDEX survey record · secondary · accessed 2026-08-15
  Supports: current TVL, BNB Chain, BitTorrent, HECO zero TVL, DEX category

Inherited controls

The research above describes the protocol layer. Every position also inherits the asset it holds and the chain it settles on. The layer with the most administrative power sets the position’s effective control; that describes control, not quality or suitability.