With the implementation of the latest UI and backend improvements, the decentralized Mettalex commodity derivatives exchange is getting closer to launch on Ethereum and Binance Smart Chain mainnets. To bootstrap initial liquidity for the DEX’s autonomous market makers, the Mettalex team is launching one of the best long-term yield farming opportunities in DeFi.
One-sided Liquidity Provision
Using the dedicated yield farming page, liquidity providers can deposit USDT and start receiving rewards without the need to acquire MTLX. USDT deposits are automatically converted to 50% USDT and 50% MTLX and staked in the Uniswap pool.
LPs that hold MTLX and USDT will also be able to participate in the yield farming program by supplying liquidity to the Uniswap MTLX:USDT pool and staking their Uni V2 tokens on the Amplify page.
Over 275% APY in USDT
1,000,000 MTLX governance tokens will be distributed in this first round of the Amplify Program. The program will run until the entire MTLX rewards pool is exhausted with yields of approx. 275% calculated in USDT terms and distributed in MTLX.
Users will also receive a proportionate amount of Uniswap trading fees – 0.3% per trade.
Mitigated Impermanent Loss
The temporary negative effects that may be caused by impermanent loss are mitigated by the high APY.
MTLX rewards will be distributed with each Ethereum block.
For a detailed walkthrough please read this blog post.
What is Mettalex Amplify?
Mettalex Amplify is Mettalex’s first long-term yield farming initiative that allows liquidity providers to earn MTLX rewards by depositing liquidity in the MTLX:USDT Uniswap pool.
What is the goal of Mettalex Amplify?
The primary goal for Mettalex Amplify is to further decentralize Mettalex and bootstrap initial liquidity required for the launch of the Mettalex DEX.
How long will Mettalex Amplify run?
The first phase of Mettalex Amplify will run until the entire MTLX reserve is exhausted. The reserve is made of 1,000,000 MTLX governance tokens. Depending on how much liquidity is supplied in the program, the period during which the program is running will vary.
What is the annual percentage yield (APY) for Mettalex Amplify?
Liquidity providers will have the opportunity to earn over 275% APY. In addition, participants will also earn a proportionate share of the trading fees generated in the MTLX:USDT Uniswap pool (0.3% of all trades).
How do I participate in Mettalex Amplify?
A prerequisite for joining Mettalex Amplify is a MetaMask wallet credited with sufficient ETH for payment of Ethereum gas fees. Apart from that, there are several ways to participate.
Should I be worried about impermanent loss?
Any impermanent loss is likely to be compensated by the high APY. Also, the longer duration of the program will likely offset sudden price volatility.
Are there any fees required to participate?
All operations on the Ethereum network require the payment of gas fees. The Ethereum gas market is very dynamic with fees changing from 49 to 350 Gwei (and vice versa) in a matter of hours. The gas fees users will have to pay are conditional on the participation option they select (see above) and the current level of Ethereum gas fees.
To check the current gas price, you can use ETH Gas Station.
When can I redeem/unstake my liquidity?
Mettalex Amplify participants can withdraw their liquidity at any time. There is no lock-up period. They will receive their USDT plus, a proportionate share of the Uniswap trading rewards, and all accrued rewards in MTLX tokens.
Are there any fees for redeeming liquidity?
Just like in the case of supplying liquidity, withdrawing it will require the payment of Ethereum gas fees. In addition, a flat 5% tax will be charged on withdrawals.
Why is my Uniswap V2 liquidity provider token balance so low?
When users deposit liquidity in a Uniswap pool, their wallets are credited with Uniswap V2 LP (liquidity provider) tokens. The value of these tokens appreciates in time due to the accumulation of trading fees in the particular pair. Furthermore, when LPs want to withdraw their liquidity, they exchange the Uniswap V2 tokens for a pair of tokens. In the case of the Amplify program, this set is MTLX:USDT. It is perfectly normal for the Uniswap V2 tokens to be a very small amount. That small amount still represents an amount close to the initial deposit of the liquidity provider.
Should I deposit my liquidity directly in the Amplify contract?
No. Any direct deposits to the Amplify contract should be considered burned.