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MUFEX offers a robust MLP (MUFEX Liquidity Pool) mechanism, which enables users to easily participate in providing liquidity with minimal barriers.
By contributing to the liquidity pool, users not only enhance the trading experience on the platform but also have the opportunity to earn a portion of the transaction fees generated by the pool.
To gain a deeper understanding of the specific features and benefits of MLP, please click the provided link for further information.
Prior to acquiring MLP tokens, users are required to initiate a deposit transaction to MUFEX smart contract on the blockchain.
After the deposit is confirmed, users can utilize the funds available in their trading account to purchase MLP tokens.
When selling MLP tokens, the corresponding USDT proceeds will be seamlessly transferred to the user's trading account.
For detailed instructions on the deposit process, please consult the provided link.
The MLP token is initially priced at 1 USDT, and users have the ability to conveniently monitor its real-time price on the Earn page or Asset page. And they can directly purchase MLP tokens using funds from their trading account without any slippage.
After a successful purchase, users can easily view their MLP token balance on the Asset page.
To ensure smooth trading of MLP tokens, a certain proportion of the pool is reserved exclusively for the circulation of MLP tokens, ensuring their liquidity. As a result, there is a daily limit on the total amount that can be sold from the pool.
The current configuration allows for the sale of 20% of the total MLP token supply from the previous day. The daily available balance is refreshed at UTC midnight, providing users with new trading opportunities while adhering to the specified limitations.
Both the purchase and sale of MLP tokens incur a transaction fee of 0.1%.
This fee structure serves two purposes: first, it incentivizes users to hold MLP tokens for a longer duration, enabling them to earn more transaction fees; second, it ensures the stability of the MUFEX liquidity pool, leading to increased long-term market-making profits.
This mechanism also encourages more individuals to consider purchasing and holding MLP tokens, thereby promoting wider adoption and participation in the ecosystem.
All participants in the MUFEX Liquidity Pool are entitled to receive additional rewards in the form of a portion of the transaction fees paid by the counterparties involved in the pool.
Currently, 40% of the transaction fees are allocated as rewards to MLP token holders. However, this percentage may be subject to adjustments in the future to ensure the annualized returns for MLP token holders. All adjustments will be made with consideration of community feedback and will be announced prior to their implementation.
The settlement period for transaction fees is set at 5 minutes, meaning that you can start enjoying the fee rewards shortly after purchasing MLP tokens.
The Fee Annual Percentage Rates (APRs) are revised every week on Sundays and are determined based on the fees collected during the previous week."