Decentralized crypto exchange World Markets (WM) launched today, February 17, becoming one of the first decentralized applications (dApps) on the MegaETH network. WM bundles spot, perpetrators and loans under one chain account.
Commenting on The Defiant, World Markets co-founder Kevin Coons described the launch as an attempt to fix broken incentives, arguing that traders are often punished even when their positions are properly hedged. Coons explained:
“On other platforms, a profitable hedged position can still be liquidated due to a price swing. Worse, winners are often forcibly locked out to cover losses from reckless traders. That’s not risk management; it’s a tax on those responsible! WM’s risk engine understands net market exposure. If you’re delta neutral, you’re protected. No ADL [auto-deleveraging]. No unfair liquidations. Just a unified trading layer where your entire portfolio becomes your strength.”
Automatic deleveraging, or forced liquidation, of leveraged crypto positions came into broader industry focus following the October 10 market crash, which resulted in an ADL cascade, bringing total daily liquidations to a record high of nearly $20 billion.
On its plans after the protocol’s launch, the World Markets team suggested that a token remains a long-term possibility, but without a set timeline, citing a desire to remain flexible as new products are rolled out. Near-term protocol features include vaults, expected within one to two months, covering automated basic leveraged trades.
For now, World Markets is prioritizing asset listings over fundraising and has no venture capital backers, Coons told The Defiant. Liquidity support will instead come from MegaETH, with plans for a mobile app later this year, as the platform measures which markets are gaining the most traction.
The launch comes as MegaETH itself has seen early capital inflows since its February 9 launch on the mainnet, with its total value increasing by around 65% in the past week to around $66.5 million, largely driven by stablecoins.
World Markets is currently the third largest protocol on MegaETH by TVL, with approximately $6.3 million. The largest protocol, Kumbaya, leads by far with $51.37 million.
As The Defiant previously reported, the L2 network has yet to meet the on-chain usage and revenue thresholds associated with a future MEGA token launch, leaving token generation requirements unmet for the time being.