Maker Liquidity Pool (USDT ERC-20) — Epoch 3

Epoch 3: Maker Liquidity Pool — New Platform Fee Reward

Summary

Participants of the upcoming Maker Liquidity Pool (“Maker LP”) shall be entitled to 60% of MarginX’s net platform (trading) fee and the rewards shall be distributed in $FX on a weekly basis.

Duration: 16 March 2023 – 13 April 2023
Maximum pool cap: 750,000 USDT (600,000 USDT allocation on Ethereum, 150,000USDT allocation on f(x)Core

Please note that: f(x)EVM pool will kick start on 22nd March 2023)

Overview

The MarginX 100-Day Incentive Program will be coming to an end on 11 March 2023. The team will revoke the $FX reward system and replace it with the distribution of a portion of MarginX’s net platform fee in $FX, on a weekly basis.

Participants shall share the risk and reward from the performance of the Maker LP proportionally, and in return, a portion of the net platform fee shall be shared among the participants.

In short, participants will be able to provide liquidity, and in turn earn a portion of MarginX’s net platform fee.

PLEASE TAKE NOTE THAT, USERS MIGHT LOSE THEIR FUND (NO 100% GUARANTEE PRINCIPAL)

MarginX Net Platform Fee Distribution

MarginX has made a net platform fee of over 35,000 USDT in the past 2 weeks (14 Feb to 28 Feb), with an APY of 3.54%.

MarginX net platform fee = Platform fee - Trading fee rebate - Referral commission

Distribution of MarginX net platform fee:

60% goes to Maker LP rewards

10% goes to Insurance Pool

30% goes to MarginX Treasury

MarginX Maker LP Rewards (New!)

New Maker LP rewards = Trading profit/loss + 60% of net platform fee

For example:

60% of net platform fee is 60,000 USDT, monthly price of $FX is $0.2, MarginX will buy 300,000 $FX (60,000 / 0.2) from the open market and distribute it to all participants.

Alice contributes $300,000

Bob contributes $200,000

Charles contributes $250,000

Alice shall get 120,000 $FX (300,000/750,000 * 300,000 $FX);

Bob shall get 80,000 $FX (200,000 / 750,000 * 300,000 $FX);

Charles shall get 100,000 $FX (250,000 / 750,000 * 300,000 $FX)

However if the maker liquidity pool lose $10,000 on epoch 3, the loss shall share among the withdrawal parties

For example, if Alice and Bon made the withdrawal request (300,000 and 200,000)
Alice will only get back $294,000 (300,000 - (10,000 * 300,000 / 500,000) )
Bob will only get back $ 196,000 (200,000 - (10,000 * 200,000 / 500,000))

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MarginX Liquidity Pool Epoch 3:
:moneybag: MORE PnL earnings
:gem: MORE $FX rewards
:convenience_store: MORE convenience

SAVE THE DATE :date: 16 March, 12nn (GMT+8)

Stay tuned for MORE info.

#MXMakerLP

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Please do take note that MarginX maker liquidity pool epoch 3 is a risk and reward sharing pool.

Trading loss will be shared among the parties that made the withdrawal request on that particular epoch (realised loss)

If the maker liquidity pool loses $10,000 on epoch 3, the loss shall share among the withdrawal parties*

Assume Alice deposited $300,000, Bob deposited $200,000

For example, if Alice and Bon made the withdrawal request (300,000 and 200,000)
Alice will only get back $294,000 (300,000 - (10,000 * 300,000 / 500,000) )
Bob will only get back $ 196,000 (200,000 - (10,000 * 200,000 / 500,000))

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Reference of the trading fee and gas fee collected on MarginX (from 1st Jan 2023 till 15th March)

$USDT $FX Total
Trading fee 183,979.66 210,154.17
Gas fee 96,857.35 4,115.12
$FX total @0.2 214,269.29
Total ($USDT) 280,837.01 42,853.86 323,690.87
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Since users can contribute via ERC20 and FXCORE now, will FXCORE-USDT users be able to claim their share of rewards on FXCORE?

The weekly rewards will be split proportionally to their TVL among both chains, right?

Example of contribution split of the 750k Cap:

  • 500k TVL on ERC20 - (2/3 share)
  • 250k TVL on FXCORE - (1/3 share)

30k in fees generated in the first week of Epoch 3.

  • 20k will go to ERC20 - (2/3 share)
  • 10k will go to FXCORE - (1/3 share)

Is this correct?

Just curious on which chain FXCORE users will claim the rewards on.

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It’ll be the same mechanics/flow as existing Epoch2 on maker.marginx.io

Yes. Correct.

It will be a separate pool with a different cap, catering to our early supporters whom previously participated in the “Deposit Incentives” [ 100-Days Incentive Program ].

With this Maker Liquidity Pool (FXCore), no conversion (bridge) to ERC-20 is required.

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The weekly rewards will be split proportionally to their TVL among both chains, right? → short answer is yes, the weekly reward (hopefully it is not loss) - shall be split proportionally to the TVL

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Cool, nice to know. I guess the fees are increasing from january to march because of the new user to marginx, right?

Yes. Definitely we’re seeing more new users coming onboard.

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