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, ETH, FET, or BUSD and start receiving rewards without the need to acquire MTLX. USDT, ETH, FET, and BUSD deposits are automatically converted to 50% USDT or ETH or BUSD and 50% MTLX/anyMTLX and staked in the Uniswap pool.
LPs that hold MTLX and USDT, MTLX and ETH, MTLX and FET, or anyMTLX and BUSD will also be able to participate in the yield farming program by supplying liquidity to the Uniswap MTLX:USDT, MTLX:FET, or MTLX:ETH pools and PancakeSwap anyMTLX:BUSD pool and staking their LP tokens on the Amplify pages.
Up to 275% APY in USDT
1,000,000 MTLX governance tokens will be distributed in this first round of the Amplify Program on Ethereum. Additional 250,000 anyMTLX tokens will be used for rewards on the Binance Smart Chain version of Amplify.
The program will run until the MTLX/anyMTLX reward pools are exhausted with yields of approx. 275% calculated in USDT terms and distributed in MTLX/anyMTLX.
Users will also receive a proportionate amount of Uniswap/PancakeSwap trading fees – 0.3% per trade.
Mitigated Impermanent Loss
The temporary negative effects that could be caused by impermanent loss may be mitigated by the high APY.
MTLX rewards will be distributed with each Ethereum/Binance Smart Chain block.
For a detailed walkthrough on yield farming on the MTLX:USDT and MTLX:ETH Amplify pools, please read this blog post.
For a detailed walkthrough on yield farming on the MTLX:FET Amplify pool, please read this blog post.
For a detailed walkthrough for the Binance Smart Chain version of Amplify, please read this blog post.
Frequently Asked Questions (FAQ)
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, MTLX:FET or MTLX:ETH Uniswap pools and in the anyMTLX:BUSD PancakeSwap pool (Binance Smart Chain).
What is the goal of Mettalex Amplify?
The primary goal of Mettalex Amplify is to further decentralize Mettalex and bootstrap the initial liquidity required for the launch of the Mettalex DEX in February 2021.
How long will Mettalex Amplify run?
The first phase of Mettalex Amplify will run until the entire MTLX/anyMTLX reserves are exhausted. The reserve is made of 1,000,000 MTLX and 250,000 anyMTLX 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 up to 275% APY. In addition, participants will also earn a proportionate share of the trading fees generated in the pools (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.
How is the 1m MTLX reward shared between the USDT, FET, and ETH pools?
The 1m MTLX reward will be distributed to liquidity providers in all three pools. Rewards will be distributed based on the user’s percentage of total liquidity in the specific pool.
Are there any fees required to participate?
All operations on the Ethereum and Binance Smart Chain networks 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.
Fees on Binance Smart Chain are much lower, ranging from a few cents to about a dollar (averaging at 20 Gwei).
When can I redeem/unstake my liquidity?
Mettalex Amplify participants can withdraw their liquidity at any time. There is no lock-up period. Participants in the MTLX:USDT and ETH:MTLX pools on Ethereum will receive USDT or ETH and MTLX tokens plus a proportionate share of the Uniswap trading rewards and all accrued rewards in MTLX tokens. Participants in the MTLX:FET pool on Ethereum will receive FET and MTLX tokens plus a proportionate share of the Uniswap trading rewards and all accrued rewards in MTLX tokens.
Participants on Binance Smart Chain will receive BUSD, a proportionate share of the PancakeSwap trading rewards, and all accrued rewards in anyMTLX tokens.
Are there any fees for redeeming liquidity?
Just like in the case of supplying liquidity, withdrawing it will require the payment of Ethereum/Binance Smart Chain gas fees. In addition, a flat 5% fee will be charged on the user’s Uniswap/PancakeSwap LP token balance on withdrawal. The proceeds will be either burned or added to the yield farming pool rewards.
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, MTLX:FET, or MTLX:ETH. 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 contracts?
No. Any direct deposits to the Amplify contracts should be considered burned.