World Markets Launches ‘No ADL’ DEX on MegaETH

Decentralized crypto exchange World Markets (WM) launched today, Feb. 17, becoming one of the first decentralized applications (dApps) on the MegaETH network. WM bundles spot, perps and lending under one on-chain account.

In commentary to The Defiant, World Markets co-founder Kevin Coons framed the launch as an effort to fix broken incentives, arguing that traders often get punished even when their positions are properly hedged. Coons explained:

“On other platforms, a profitable hedged position can still get liquidated on a price swing. Even worse, winners are often forcibly closed out to cover losses from reckless traders. That’s not risk management; it’s a tax on the 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 power.”

Auto-deleveraging, or forced liquidation, of leveraged crypto positions came into focus more broadly across the industry after the Oct. 10 market crash, which resulted in an ADL cascade, bringing total daily liquidations to a record high near $20 billion.

On its plans after protocol launch, the World Markets team suggested that a token remains a long-term possibility but without a set timeline, citing a desire to stay flexible as new products roll out. Nearer-term protocol featuers include vaults, expected within one to two months, covering automated leveraged basis trades.

For now, World Markets is prioritizing asset listings over fundraising and has no venture capital backers, Coons told The Defiant. Liquidity support is instead coming from MegaETH, with plans for a mobile app later this year as the platform gauges which markets gain the most traction.

The launch comes as MegaETH itself has seen early capital inflows since its Feb. 9 mainnet launch, with total value locked rising about 65% in the past week to roughly $66.5 million, driven largely by stablecoins.

World Markets is currently the third largest protocol on MegaETH by TVL, with about $6.3 million. The largest protocol, Kumbaya, leads by far with $51.37 million.

As The Defiant reported earlier, the L2 network has yet to meet the on-chain usage and revenue thresholds tied to a future MEGA token launch, leaving its token generation event conditions unmet for now.

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