Information for LPs


Mycelium Perpetual Swaps launched on Ethereum Layer 2, Arbitrum, in August 2022.
Traders on the platform can enjoy trading leveraged positions with extremely low entry and exit fees (0.09% of notional value) with no price impact on a range of assets: BTC, ETH, LINK, BAL, FXS, & CRV!
We know the number one priority for our traders is trading with liquidity, which is why our Mycelium Liquidity Pool (MLP Token holders) are incentivised to earn 70% of fees generated on the platform, averaging a return of ~25-45% for LPs.
Our mechanism is optimising returns for our LPs. 70% of fees generated are rewarded to MLP holders, 25% to Mycelium Treasury, and 5% for our active traders.

What LPs can expect from providing liquidity?

FEE SPLIT: 70% of all trading fees
TARGETED YIELD: ~20-45% empirically

ETH Rewards

The LP pool earns 70% of fees generated from swaps and leveraged trading. These fees are converted to ETH, before being continuously distributed to MLP stakers, and claimable via the ‘Earn Page’ on our UI.

How does the Liquidity Pool and Rewards work?

The MLP (Mycelium liquidity pool) is a basket of blue-chip assets and stablecoins pooled together, which acts as a global AMM for leveraged trading. Liquidity providers can deposit any whitelisted asset into the MLP pool in return for MLP tokens, which represents the LPs share in the diversified liquidity pool.
Traders encounter three types of fees on the platform:
  1. 1.
    Entry / Exit fee of 9bps
  2. 2.
    Borrow cost of 0.005% (% utilisation per hour)
  3. 3.
    Small spread if they are trading on a long tail asset (LINK & UNI = 0.44%, and CRV, BAL, FXS = 0.88%)
70% of those fees generated on the platform are distributed to MLP holders.
Additionally, LPs are incentivised to redeposit their ETH rewards over time using the ‘compound’ function, which allows LPs to earn MLP rewards at a compounding rate.
Given MLP holders are exposed to the basket of assets in the MLP pool they also have the opportunity to earn rewards in the form of capital appreciation of the assets such as ETH and BTC in the liquidity pool.
Liquidity providers can deposit any of the whitelisted MLP assets for traders to trade against. Fees for depositing MLP assets are dynamic to incentivise the pool to stay in line with its target. The graphic below outlines the target weights of assets in the MLP pool:

MLP vs. MYC vs. esMYC?

MLP is our liquidity provider token: LPs accrue 70% of the perpetual swap revenue fees, and can expect a return close to the Targeted Yield (starting at 25% APR) distributed in ETH and esMYC.
MYC is our governance and utility token. 25% of trading fee proceeds are distributed to the Mycelium treasury. MYC holders have the opportunity to enter a loan agreement with the Mycelium Treasury via ‘MYC Staking’ to earn ETH rewards on their MYC.
esMYC (escrowed MYC) is a token which has a right to vest into MYC when staked in the esMYC vesting vault on the "Earn" page. The vesting period will be linearly over 6 months. MLP stakers will earn rewards in the form of esMYC.

LPs 🤝 Mycelium Perpetual Swaps

Trade with liquidity: our LPs are incentivised with competitive APRs
Trade with leverage: up to 30x
Trade with low fees: 9bps entry and exit fees
Trade with Mycelium.

How to get started with Mycelium Perpetual Swaps