MonoX Profitability and LP Revenue Share
Last October 20th MonoX launch its product. MonoX is just getting started. The platform have lots of exciting developments coming.
For the moment, MonoX wanted to give another update to its community about its profitability, and announce an initial revenue share with its LPs.
Regular DEXs make money solely from their trade fees. Being a decentralized exchange, a portion of the fees go to the protocol because most of the trading fees are distributed back to the liquidity providers.
How MonoX generates Revenue
MonoX, generate revenue from trade fees (0.3%) but also from vCASH, holding the protocol together. It achieve single-sided liquidity by creating a virtual pair with its vCASH stablecoin. Each pool starts with 0 vCASH and through the trade activity, its pools begin to accumulate a vCASH balance.
MonoX make revenue three ways:
- Auto Rebalancing pools — for Official Pools, when the vCASH balance in the pool is negative we automatically sell off the pool’s debt to reset the balance to 0
- When users purchase vCASH directly from the market
- When Users sell vCASH back to the protocol
Early LP Revenue Share
MonoX recently launched,its LPs have only made a small amount from the shared trade fee revenue, 0.25% (please note, however: LPs will be earning 50–200% APY from the airdrop on top of this*).
As a further gesture of gratitude for its early LPs, MonoX have decided to distribute 10% of its vCASH revenue back to its LPs. It distributed the revenue based on the vCASH amount per pool (pool profitability), so the final amount received is proportional to the pool’s profitability that user deposited liquidity into. The more profitable the pool resulted in a higher revenue share distribution for LPs of said pool.
ABOUT MonoX
MonoX introduces the premier bootstrap decentralized exchange, Monoswap. Project owners can list their tokens without the burden of capital requirements and focus on using funds for building the project instead of providing liquidity.
RESOURCES
Medium
