mETHMOON — the first Polygon native leverage token is live with $DRINK liquidity mining

Since the team launched Beverage Finance and initial liquidity mining program a few weeks ago, we’ve been enormously grateful of the support from the early community. We acknowledge that the recent high gas fees on ETH L1 has prevented many community members from buying Beverage products and contributing to the community.

As a fair launch project with 0 premine, our vision has always been to enable wider access to structured products previously only enjoyed by the elite. Going multichain was always part of the roadmap to decrease gas fees and onboard more members to the $DRINK community.

However, due to current ETH L1 gas conditions, we’ve accelerated that roadmap! Today, we’re excited to announce that Beverage is live on Polygon, the first of many cheaper chains / L2s we plan to deploy on.

mETHMOON 🌕

The first product that has been launched is the ETH Variable Long Token (mETHMOON — perfect for us mETH heads!) which tracks a variable 2–3x leverage exposure on ETH.

mETHMOON is the first Polygon native leverage token that allows you to place a levered bet on ETH and at the same time, offers the highest spot ETH leverage in all of DeFi at the moment.

Like other Beverage tokens, mETHMOON is built on Aave and Set Protocol, and is composed of 2 positions. The collateral position — Aave Matic WETH and the debt position — variable USDC debt. The change in price of mETHMOON is 2–3 times the change in ETH price. The beta product was launched on Polygon on November 29th, and since then ETH has moved up 10% while the mETHMOON has moved up 25% 👀

The methodology follows a Binance methodology to minimize unnecessary daily rebalances and volatility decay by letting the leverage ratio between bounds, which are set to 2x (min) and 3 (max). mETHMOON will only rebalance during extreme market movements.

There will be a 1.95% annual management fee along with a 0.1% mint/redeem fee similar to Beverage tokens on L1. 80% of the fees will buy back $DRINK and be distributed to xDRINK stakers on L1. The remaining 20% will accrue to the developers of the strategy (in this case — the project launch team)

Liquidity Mining 🧑‍🌾

Liquidity mining for the mETHMOON / WETH pool on Quickswap will start on Sunday 11/5 6am UTC.

As per BIP-002, 50% of $DRINK emissions will be bridged to Polygon for this program. Liquidity mining APR is expected to be >100% based on current DRINK prices. But on top of that, LPs also earn pool trading fees and stay 1.5–2x leverage long ETH at all times (by pooling ETH 1x with ETH 2–3x)

You can buy the mETHMOON on Quickswap or mint on TokenSets today.

And make sure to provide liquidity on QuickSwap in preparation of liquidity mining.

SOURCE: Medium