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MLP Rewards
MLP Stakers earn rewards through a combination of ETH Rewards (fees generated from swaps and leveraged trading converted to ETH), and esMYC (rewards in the form of a token which has the right to vest into $MYC when staked in the esMYC vesting vault).
These rewards are distributed by staking the MLP token into the contracts. After buying your MLP tokens, they will automatically be staked and you will start earning Escrowed MYC and ETH rewards. You can check your rewards on the "Earn" page of the frontend.
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.
MLP stakers will earn rewards in the form of esMYC (Escrowed MYC). esMYC is a token which has a right to vest into $MYC when staked in the esMYC vesting vault. The vesting period will be linearly over 6 months. To vest esMYC into MYC, you will need to deposit them in the esMYC vesting vault on the "Earn" page of the interface.
The flow of fee generation is displayed in the following image:
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MLP stakers will earn rewards in the form of esMYC (Escrowed MYC). esMYC is a token which has a right to vest into $MYC when staked in the esMYC vesting vault. The vesting period will be linearly over 6 months. To vest esMYC into MYC, you will need to deposit them in the esMYC vesting vault on the "Earn" page of the interface.
Mycelium Perpetual Swaps will be boosting MLP returns to a targeted yield of 25% APR through a combination of esMYC distributions and ETH rewards for the first month of the Perpetual Swap product’s operation. The following month’s MLP APR will be boosted to a targeted 20%. The boosted APR is inclusive of ETH rewards. If the ETH rewards APR is greater than the targeted APR, no esMYC will be distributed.
Note that given the volatility of TVL in the liquidity pool, it will be difficult to consistently deliver the targeted APR to liquidity providers over the incentivised period. It is possible that some weeks will undershoot the target, and some weeks will overshoot the target.
Last modified 5mo ago