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HMX - What is HMX Crypto? Overview and Tokenomics

Gabriel Abreu, Kassandra DAO

This article offers a thorough examination of HMX, a decentralized perpetual protocol that aims to tackle some of the most pressing issues in the DeFi space. From its unique mechanisms, like Trader's Loyalty Credit, to its multi-phase launch strategy, learn how HMX is setting itself up as a significant player in decentralized finance.


In Decentralized Finance (DeFi), protocols face many challenges, including high fees, limited asset collateral options, and complex user experiences. 

That's why HMX, a decentralized perpetual protocol, was born: to redefine the standards of DeFi trading platforms. With its unique approach to solving these prevalent issues, HMX is gearing up to significantly impact the DeFi ecosystem.

What is HMX? An Overview

HMX is a decentralized perpetual protocol supporting cross-margin and multi-asset collateral. What does this mean? Simply put, HMX allows traders to leverage up to 1000x across various asset classes, including forex, cryptocurrency, equity, and commodities. 

Unlike traditional decentralized platforms, it allows users to pool multiple types of assets as collateral, adding a layer of flexibility that's often missing in the DeFi space.

The significance of HMX lies in its innovative solutions to key pain points commonly found in DeFi. For instance, one of the standout features is its support for multiple assets as collateral. This enhances capital efficiency and makes the platform more accessible to a wider range of investors. 

Additionally, HMX aims to reduce the cost of trading by charging lower fees, thereby attracting a larger user base.

Another noteworthy aspect is the planned phased launch of HMX, which will commence with a public open beta. This step-by-step rollout allows the community to engage with the platform, earn rewards, and provide valuable feedback, thereby shaping the protocol's future development.

How HMX Works

HMX introduces innovative mechanisms like Trader's Loyalty Credit (TLC) and Dragon Points to incentivize both trading and staking on its platform. 

  • TLC is awarded to $HMX users for every dollar of trading volume, providing a pro-rata distribution of rewards based on each trader's TLC amount. 
  • Dragon Points, on the other hand, are designed to reward long-term HMX supporters. The points are awarded to stakers of HMX and eSHMX at a 100% APR and can be staked further to earn a share of the protocol's revenue.

In the HMX ecosystem, the HMX token serves multiple purposes. It acts as the governance token, allowing holders to participate in shaping the protocol. It also provides the utility of staking and earning rewards. Another interesting aspect is eSHMX, an escrowed version of the HMX token. It is distributed as incentive rewards to stakers and cannot be traded until vested.

HMX Tokenomics

HMX has a thoughtful token allocation strategy designed to provide consistent yield and incentivize activities on the platform. Of the fixed supply of 10 million tokens, 40% are allocated for community incentives, 25.6% go to the ecosystem fund, and 5% are for HLP surge participants. 

Special measures like TLC and Dragon Points are implemented to increase buy pressure on HMX tokens and incentivize long-term holding.


Get $HMX Exposure by Exploring our Community Pools


Final Thoughts

With its focus on solving some of the most pressing issues in Decentralized Finance (DeFi), such as high fees and the lack of multi-asset collateral options, HMX is positioning itself to become a significant player in the DeFi landscape.

HMX is a whitelisted token on the Kassandra platform. If you're looking to invest or create a tokenized crypto portfolio with HMX, head over to Kassandra's dApp to get started.

Always remember to DYOR and good luck!

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