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Ultimate Mux Protocol Investors' Guide

Empowering Traders 2023-07-12 08:52:41
MUX Protocol is a comprehensive suite of protocols designed to offer optimized trading costs, deep liquidity, a wide range of leverage options, and diverse market options for traders. It operates on the Arbitrum network, which is a layer-2 protocol built on Ethereum, aiming to enhance scalability, transaction speed, and reduce gas fees. MUX Protocol leverages the benefits of Arbitrum to provide efficient and secure leveraged trading experiences.
 
 
 
 
 
 
 

Key Components of MUX Protocol Suite

 
 
  1. MUX Leveraged Trading Protocol: This decentralized protocol enables traders to engage in leveraged trading with zero price impact. It offers leverage of up to 100x, mitigates counterparty risks, and provides an optimized on-chain trading experience. Traders interact with the MUX native pool (MUXLP pool) on the Leveraged Trading Protocol.
 
  1. MUX Leveraged Trading Aggregator: This sub-protocol within the MUX suite automatically selects the most suitable liquidity route, minimizing the composite cost for traders while meeting their position requirements. It also aggregates liquidity from underlying protocols, enabling traders to access optimal pricing and trading experiences.
 
 
 
 

Expanding the MUX Protocol Suite

The MUX Protocol suite is continually expanding as developers contribute to the development of new features and technologies. This ensures that the protocol remains dynamic and adaptable to meet the evolving needs of traders.
 
 
 

Benefits of MUX Leveraged Trading Protocol

 
 
Zero Price Impact Trading: MUX Protocol allows traders to open leveraged positions without impacting the market price, enabling more efficient and fair trading.

 

Up to 100x Leverage: Traders can access significant leverage options, amplifying potential returns and diversifying trading strategies.

 

Self-Custody and Optimized Trading Experience: MUX Protocol empowers traders to maintain control of their assets while providing an optimized on-chain trading experience for seamless execution.

 
 
Aggregated Liquidity: The protocol aggregates liquidity from multiple underlying protocols, enhancing trading depth and improving overall market efficiency.
 
 
 
 
 

Leverage Trading Mechanisms with MUX Aggregator

 
 
The MUX Protocol leverages the MUX Aggregator to overcome obstacles faced by leveraged trading protocols. Here's how it works:
  1. Liquidity Routing: The MUX Aggregator dynamically compares trading prices offered by various leveraged trading protocols. It selects the most suitable liquidity route, ensuring optimal liquidity depth and minimizing trading costs for traders.
 
  1. Position Container: The MUX Aggregator manages position containers, which hold traders' positions on behalf of the underlying leveraged trading protocols. This mechanism ensures risk isolation and enhances the safety of the MUX Protocol.
 
  1. Leverage Boosting: The MUX Aggregator can supply additional margin to traders, enabling them to increase leverage beyond what the underlying protocol offers. This mechanism optimizes leverage options and lowers maintenance margin requirements for traders.
 
 
 
 
 

Cross-Chain Liquidity and Aggregation

 
 
The MUX Aggregator facilitates cross-chain leveraged trading by utilizing the Universal Liquidity mechanism of the MUX Protocol. Key aspects include:
  1. Universal Liquidity: The MUX Protocol unifies liquidity across multiple chains, allowing traders to access liquidity from different networks through a single interface. This improves capital efficiency and trading experiences.
 
  1. Liquidity Aggregation: The MUX Aggregator aggregates liquidity from various protocols, providing consistent and convenient trading experiences for traders. It eliminates the need for traders to manage multiple liquidity providers and simplifies the trading process.
 
 
 
 

MUXLP Pool and Multi-Asset Pool

 
 
 
  1. MUXLP Pool: The MUXLP pool is the counterparty of traders and always maintains full collateralization. It holds a portfolio of blue-chip assets and stable coins. Traders' profits and losses are settled against the MUXLP pool.
 
  1. Multi-Asset Pool: The Multi-Asset Pool, within the MUXLP pool, ensures liquidity and efficient trading experiences. Each asset in the pool has a targeted weight, and the fees for buying or selling MUXLP with specific assets adjust accordingly. This mechanism helps maintain liquidity and market balance.
 
 
 
 

Tokenomics of MUX Protocol

 
MUX Protocol incorporates four tokens: MCB, MUX, veMUX, and MUXLP. Here's a breakdown of their functionalities:
 
 
  1. MCB: MCB is the main token of the protocol. Users can lock MCB to receive veMUX, which entitles them to protocol income and MUX rewards. MCB has a capped supply and can be staked for various durations to earn veMUX.
 
  1. MUX: MUX is a non-transferable reward token that can be earned by holding veMUX or staking MUXLP. MUX can be staked for veMUX or vested into MCB. It has a capped supply, and the daily emission decreases as MUX is vested into MCB.
 
  1. veMUX: veMUX is the protocol governance token that grants holders voting power on protocol governance decisions. Users obtain veMUX by locking MCB and/or MUX. Holding veMUX also entitles users to protocol income and MUX rewards.
 
  1. MUXLP: MUXLP is the liquidity provider token used to provide liquidity to the MUXLP pool. Users can buy MUXLP tokens with supported assets and stake them to earn protocol income and MUX rewards. MUXLP tokens are minted and burned based on market demand.
 
 
MUX Protocol on the Arbitrum network offers traders a comprehensive suite of protocols for leveraged trading with optimized trading costs, deep liquidity, and a wide range of leverage options. By leveraging the benefits of Arbitrum, MUX Protocol provides efficient and secure trading experiences. Traders can utilize the MUX Leveraged Trading Protocol and MUX Aggregator to access aggregated liquidity, zero price impact trading, and enhanced leverage options. The protocol's tokenomics, including MCB, MUX, veMUX, and MUXLP, provide additional opportunities for users to participate and earn rewards within the ecosystem.
 
 
 
 
 

Mux Protocol Referral

 
 
The MUX Protocol implements fees to ensure sustainable revenue and provide benefits to its users. In the last 24 hours, the protocol generated $57,204 in fees, resulting in $24,208 in revenue. Over time, the protocol has accumulated fees totaling $8.29 million. Traders using the MUX Protocol are subject to position fees, which are fixed at 0.08% of the asset price multiplied by the position size. These fees are charged both when opening and closing positions.
 
 
 
Additionally, MUX offers a referral program that rewards participants. Referrers can earn rebates from the trading fees of their referees, while traders referred to as referees can enjoy trading fee discounts by using a referral code. The referral program operates on a tier system, where users can level up their tier by increasing their veMUX holdings. Rebate rates can reach up to 35%, and trading fee discounts can go up to 10%.
 
 
 
Image Source from Mux Protocol
 
 
 
The referral tier for each account is determined based on the value of their veMUX holdings at Thursday 0:00am UTC, using the average price of MCB tokens over the past seven days. Traders can apply referral codes to their accounts to receive trading fee discounts according to the rate specified by the code. Weekly on Thursday UTC, the referral rebates and trading fee discounts are airdropped to users' recipient addresses in the form of WETH tokens.
 
 
 
 
 

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