July 14: Launch of MTLX Rewards for Mettalex DEX Markets
Jul 7, 2021
The Mettalex team is thrilled to announce that the next part of the DEX vision is becoming a reality in just seven days.
As you may already know, more than 80% of all MTLX tokens will be distributed to liquidity providers (LPs). From July 14, 2021, LPs will be able to deposit stablecoin liquidity to any of the available DEX markets and start generating fees and anyMTLX* rewards.
*anyMTLX tokens are the Binance Smart Chain (BEP-20) equivalent of ERC-20 MTLX tokens. They can be exchanged for MTLX using the AnySwap Bridge.
We decided to initiate yield farming on the DEX a week after the current announcement to give a fair start to all LPs. Users now have seven days to acquire BUSD liquidity and learn how the deposit process works (PRO hint: it is simple). anyMTLX rewards generation will commence next Wednesday.
For Traders: New and Unique DeFi Markets
With the launch of DEX yield farming, we are also adding several exciting new markets!
Those will include:
- Copper. Unavailable anywhere else in the decentralized finance (DeFi) space, Copper is one of the best-performing commodities in 2021. Its spot price climbed to a record high of $4.8 a pound on the London Metal Exchange on 11 May this year – a 36% gain since 1 January 2021. The price has since been trading around $4.3-$4.7 a pound. Mettalex traders will be able to long or short Copper with leverage and fully quantified risk.
- Steel Scrap. A Philip Price favorite and the “unsung hero” of the sustainability drive, Steel Scrap has climbed more than 100% in the last 12 months. The raw material has experienced a volatile 2021 so far. The price of Steel Scrap futures started the year at about $487/tonne, then fell to about $386/tonne, and it is now back up to around $500/tonne. It is not available for trading anywhere else in DeFi and presents a unique opportunity for crypto traders to enter the traditional commodities space. Longing Steel Scrap could be a great inflation hedge. The Steel Scrap market on Mettalex is also a great place for physical holders or metal processing companies to cost and capital-efficiently hedge their positions.
- $MATIC. One of the most promising Ethereum Layer 2 solutions is quickly gaining momentum. Its impressive ecosystem has grown to more than 350 dapps and the total value of locked capital (TVL) there is currently at $8.2 billion. Some of the most popular Ethereum DeFi dapps are already on Polygon, including AAVE, Curve.finance, 1inch, SushiSwap, ParaSwap, Augur, and Ocean Protocol. Mettalex is soon joining the ecosystem and we would like to get the MATIC community excited.
- $BNB. The native crypto commodity of both Binance Chain and Binance Smart Chain networks started the year at $37 and reached an ATH level of $686 in May. It is currently trading at around $300 and ranks at #4 by market capitalization. BNB is fundamentally important to both the Binance CEX and the Binance DeFi ecosystem. You will soon be able to short or long it on the Mettalex DEX.
- $ETH. The second most popular crypto commodity in the blockchain space is a must-have in any DEX. The Ether market on Mettalex will enable traders to short or long $ETH with just a few clicks and at a fraction of the spot price. It is the “gateway market” to Mettalex and an easy way to fall in love with the DEX’s derivatives trading simplicity and innovative risk management approach.
- BTC/GOLD. If two assets could perform well on the background of unlimited quantitative easing, $BTC and XAU are definitely the ones. But will bitcoin perform better vis-à-vis Gold, or will it be the other way around? The spread between the top crypto and traditional commodity will enable Mettalex traders and hedgers to take a position on their relative performance. BTC/GOLD will without a doubt be one of the most interesting markets on Mettalex.
For Liquidity Providers: Competitive Yields in MTLX
Liquidity providers were also at the top of our minds when launching the next major upgrade to the DEX. We are basing our approach to the DEX MTLX rewards on the experience gained in running the Mettalex Amplify program.
We have devised a liquidity-based method that will enable us to have full transparency regarding the anyMTLX/1000 USD and APY metrics.
A target of 0.15 anyMTLX per 1000 USD (or an APY of ~20%) is set and is based on weekly TVL.
Please consider the chart below.
The above calculations are based on several assumptions including six available Mettalex markets, a price of $4/MTLX, and a target of $3m TVL at Week 11. The chart will be updated once the values of these variables change to keep the 0.15 anyMTLX/1000 USD target. The daily anyMTLX rewards will be increased or decreased weekly depending on the amount of TVL available.
We are confident that a long-term, variable APY of 20% is highly competitive for stablecoin deposits in the DeFi space and should attract a sufficient amount of liquidity to Mettalex markets.
Please note that although we are aiming for a certain anyMTLX/1000 USD target, it will vary on a daily, weekly, and monthly basis, just like in the case of other major yield farming protocols. The APY could also be influenced by market cycles.
To incentivize long-term yield farming, a 1% withdrawal fee will be applied to all withdrawals. The fee will be charged on the full amount of liquidity. The proceeds will be used for the buyback of MTLX tokens.
How to Start Yield Farming on the Mettalex DEX?
We have prepared a detailed tutorial on how to deposit stablecoin liquidity in the Mettalex DEX. You can access it in the Mettalex Docs here.
A video tutorial is available on YouTube.
We hope you are as thrilled as we are about the next major step in Mettalex’s technological evolution. If you have any questions or comments, please feel free to share them with the team on Telegram, Discord, or Twitter.