MUX $ARB Rebate Rules
MUX was honored to be qualified for a 6M $ARB grant from the Arbitrum DAO Short Term Incentives Program(STIP). MUX aims to use the grant effectively and onboard more traders to the Arbitrum ecosystem by offering a Trading Fee Rebate Program.
After the MUX $ARB Rebate Program goes live, when traders open & close positions through the MUX Aggregator, up to 100% of the fees covered in the rebates scope from MUX native pool, GMX V1, GMX V2 and Gains positions on Arbitrum will be rebated weekly as ARB tokens. Traders can claim the weekly ARB rebates on Thursdays, UTC. Upon distribution, the number of ARB tokens rebated is calculated based on your weekly trading fees (covered by the scope) and the real-time ARB token price.
The Rebate Program will kick off rebating 100% of the fees covered by the scope for all integrated protocols. Since the expected duration of STIP is 2–3 months, the rebate rate for each aggregated protocol can be potentially adjusted along the way based on the grant spending speed. If the rebate rates need to be adjusted according to grant spending speed and market conditions, MUX will notify the community before making any changes.
Rebate Scope
The trading cost of perps trading is a composite factor containing fees with fixed rates like open & close fees and borrowing fees and costs with variable rates like spread, price impact, funding fees and other specific fees from each individual protocol.
While MUX aims to rebate as many trading fees as possible, it also needs to ensure the campaign won’t initiate trade-to-earn or wash trading activities. Therefore, the rebates program will focus on the fees with fixed rates (this will cover most of the cost). Variable costs like funding fees or price impacts that can be negative or positive won’t be covered in the scope.
The final rebate rate will be based on the users’ actual fees spent. If the integrated protocols offer additional rebates/rewards separately, MUX will ensure the final total rebates won’t exceed the fees paid. When calculating $ARB rebates, the trading fee discount and MUX native rebate from using a MUX referral code will be considered as well. Please check the “MUX Native Referral Code Affiliation” section for more information.
Nov. 17th Update: Since rebating borrowing fees can potentially trigger wash trading or arbitrage activities, borrowing fees from all integrated protocols won’t be rebated.
Aggregated Protocol Fee Structures:
Rebates Coverage:
Each week is one epoch.
In the beginning, 100% of the fees marked with ✅ will be rebated.
The rebate rate for each aggregated protocol can be potentially adjusted along the way based on the grant spending speed. If the rebate rates need to be adjusted according to grant spending speed and market conditions, MUX will notify the community before making any changes.
If the integrated protocol also offers additional trading incentives or discounts, MUX will ensure the MUX $ARB rebate + Integrated Protocol Incentives + Additional Discounts won’t exceed 100% of the trading fees paid.
MUX Open:
- Open Fee ✅
- Spread ❌
MUX Close:
- Close Fee ✅
- Borrowing Fee ❌
- Spread ❌
GMX v1 Open:
- Open Fee ✅
- MUX Leverage Boost Fees ✅
- Spread ❌
- Swap Fee ❌
- Execution Cost ❌
GMX v1 Close:
- Close Fee ✅
- MUX Leverage Boost Fees ✅
- Borrowing Fee ❌
- Spread ❌
GMX v2 Open:
- Open Fee ✅
- Swap Fee ❌
- Execution Fee ❌
- Price Impact Cost ❌
GMX v2 Close:
- Close Fee ✅
- Borrow Fee ❌
- Funding Fee ❌
- Price Impact Cost ❌
- Execution Fee ❌
Gains Open:
- Open fee (DaiVaultFee, LpFee, SssFee, DevGovFee) ✅
Gains Close:
- Close fee (DaiVaultFee, LpFee, SssFee, DevGovFee) ✅
- Rollover fee ❌
- Borrowing fee ❌
- Funding fee ❌
Rebate Rules
- After the Rebate Program goes live, when traders open & close positions through the MUX Aggregator, fees covered in the rebates scope from MUX, GMX V1, GMX V2 and Gains positions on Arbitrum will be rebated weekly as ARB tokens.
- The original trading cost will be charged upfront when opening/closing a position. Traders’ weekly cost will be tracked and rebated in the form of $ARB tokens once a week.
- $ARB tokens will be distributed as fee rebates to traders weekly on Thursdays UTC based on the fees they spend during the week. Upon distribution, the number of ARB tokens rebated is calculated based on your weekly trading fees (covered by the scope) and the real-time ARB token price.
- The rebated $ARB tokens need to be manually claimed. Unclaimed $ARB tokens will accumulate until they are claimed. Unclaimed $ARB tokens won’t expire before the Rebate Program ends.
- The Rebate Program will kick off rebating 100% of the fees covered by the scope for all integrated protocols. Since the expected duration of STIP is 3–4 months, the rebate rate can be potentially adjusted along the way based on the grant spending speed.
- If the rebate rates need to be adjusted according to grant spending speed and market conditions, MUX will notify the community before making any changes.
- The final rebate rate will be based on the users’ actual fees spent. If the integrated protocols offer additional rebates/rewards separately, MUX will ensure the final total rebates won’t exceed the fees paid.
- No wash trading or Sybil-attack-related activities are allowed. MUX contributors will closely monitor related activities from this campaign; Addresses involving wash trading or Sybil-attack-related activities will be published and excluded from receiving the rebates.
- MUX contributors reserve the right to identify any Sybil-attack-related addresses and exclude them from the incentive program.
- The anti-wash-trading & anti-sybil-attack rules will remain unrevealed. Otherwise, the rules can be abused with planned strategies.
- When calculating $ARB rebates, the trading fee discount and MUX native rebate from using a MUX referral code will be considered as well. Please check the “MUX Native Referral Code Affiliation” section for more information.
MUX Native Referral Code Affiliation
Since the MUX native referral codes grant referrers rebates, self-referral + $ARB rebates can potentially trigger trade-to-earn or wash trading activities. To prevent such activities, if a trader uses a MUX referral code, the rebate rate (not the discount rate) of the code used will be deducted from the $ARB rebate rate by default.
The referral code owners can apply to whitelist the referral code by filling out the application form. MUX contributors will review the applications and whitelist referral codes based on the code user & owners’ past trading activities.
Once a referral code is whitelisted, the rebate rate (not the discount rate) of the code used won’t be deducted from the $ARB rebate rate.
The code owner will earn referral rebates regardless of the whitelisting; only traders who use MUX referral codes can be impacted if the code used isn’t whitelisted.
Trading Fee Rebates vs. MUXLP Incentives
In the MUX STIP proposal, both trading fee rebates and liquidity incentives were proposed with a precondition that the grant allocation ratio for trading and liquidity incentives is tentative and can be adjusted based on performance.
Before the incentives program started, the organic volume on MUX spiked due to market volatility. There have been multiple $200M+ and even $450M+ volume days in the past month after the proposal passed. Since MUX lowered the applied grant size from 9M to 6M $ARB, considering the increasing trading demand and the goal of onboarding more traders for the Arbitrum ecosystem, MUX will prioritize trading incentives and kick it off first.
If the trading incentive alone is projected to utilize the grant after the Rebate Program starts fully, there is a possibility that 100% of the grant will be used on the trading side. Since higher trading volume also generates higher protocol income, LPs can still greatly benefit without direct LP incentives.
