How to use the DutchX MGN Pool interface

A quick guide on the easiest way to generate dxDAO Reputation

slow.trade
May 28 · 6 min read

NOTE: THE DUTCHX MGN POOL IS NO LONGER ACTIVE BUT THIS MEDIUM POST REMAINS LIVE FOR INFORMATIONAL PURPOSES.

The DutchX MGN Pool makes it easy to generate Magnolia (MGN). MGN functions as a liquidity contribution reduction mechanism on the DutchX, and it also generates the highest amount of Reputation for the dxDAO.

Please note: This pool has the sole purpose of easily generating Magnolia tokens by taking part in every auction on your behalf. You can only claim back your deposited funds at the end of the pooling period. By taking part in the pool, you understand that you might incur substantial losses of tokens if auctions close below the market price and in fact that you lose all your tokens.

In order to make the most out of this walkthrough, you can familiarize yourself with the following topics:

Why should you use the MGN Pool? TL:DR;

  • Instead of fees, the DutchX trading protocol levies Liquidity Contributions of ≤0.5% of a participant’s total trading volume. Liquidity Contributions do not go to an operator or owner, rather they are reinvested in the next auction of the token pairing to contribute liquidity, benefitting all traders who participate in the following auction.
  • Magnolia (MGN) tokens are intrinsic to the DutchX trading protocol. 1 MGN (or fraction thereof) is generated from trading the equivalent of 1 ETH of any whitelisted token on the DutchX. Participants holding MGN tokens pay lower Liquidity Contributions, according to a step function based on the percentage of the total volume of locked MGN tokens they hold (the lowest is 0.1%). Further details on the Liquidity Contribution reduction model are available here.
  • MGN tokens can be registered on the dxDAO to earn 50% of initial Reputation between all registered MGN holders.
  • The DutchX MGN Pool interface lets you deposit an ERC20 token (e.g. GNO and DAI) or ETH, which are then continuously traded in auctions to generate MGN, with only three transactions required on your part: DEPOSIT TOKEN, WITHDRAW TOKENS/MAGNOLIA & LOCK MAGNOLIA.
  • Remember to lock your MGN generated through this pooling interface at the end, so that it is associated with your unique Ethereum address. You additionally need to register your Ethereum address for dxDAO participation. This can happen anytime during the Vote Staking Period and is done in this interface.
  • If you plan on using the Gnosis Safe, make sure you disable Metamask on your browser.

DEPOSIT TOKEN:

  1. After you open the MGN pooling website, you will see different pools that you can join. The currently available pools are GNO/ETH and DAI/ETH. Please select which pool you want to participate in order to continue.
  2. The main page for the GNO-ETH DutchX MGN Pool is pictured below. On the left side of the screen, you will see a section reflecting your wallet and MGN balances. To the right, you will see there are two columns, one for each token that can be pooled.
  3. In each column, you will see a space where you can determine the amount of tokens you want to deposit in the pooling contract. Please select the desired amount (can be one side or both sides; they don’t need to be the same amounts either), click on SUBMIT, and confirm the transaction on Metamask. This pools your funds with other participants’, and gives permission to automatically trade them on the DutchX in order to generate MGN.

4. You can deposit tokens at any time during the pooling period, which is expected to last from the 29th of May 2019, until the 23rd of June 2019. Please note that tokens that have already been deposited into the pooling contract cannot be withdrawn. You can withdraw your share of remaining tokens after the pooling period ends. Additional tokens can be deposited at any time during the period previously mentioned.

5. After you have submitted your deposits, you will see a few changes in the interface. You will see that the Total pool share, which reflects the total amount of tokens that have been pooled, rises according to the amount of tokens you deposited. You will also see the amount you contributed under Your contribution. At this moment, you will be able to deposit more into the pool. Remember that as stated before, you cannot withdraw the amount you have already submitted into the contract. As auctions run, you will see the Total claimable deposit section change.

6. Once the pooling period has concluded, you will see the image pictured below. The initial deposit of tokens has been withdrawn by the pool. Unlocking of generated MGN tokens has been requested by the pool — you must now wait 24 hours until tokens are able to be withdrawn back to your wallet address. You cannot do anything during this period to get your tokens back sooner.

WITHDRAW TOKENS AND MAGNOLIA:

  1. After the 24 hour hold period and the MGN UNLOCKED contract state has been achieved, you will see that the screen shows an option to withdraw, pictured below. Go ahead and click on the Withdraw button and confirm the transaction on Metamask.

LOCK MAGNOLIA:

  1. Right after you withdraw your MGN tokens, you will see the screen shown below. Under the User Balance section, you will see a Lock button. Please lock and confirm the transaction on Metamask. The total lockable balance will show all the MGN you have accrued, including any MGN generated outside of the pool (by trading on the DutchX). The total locked balance will update after using the Lock button and will display the amount of MGN that is locked and will count for Reputation on the dxDAO. Remember that you need to register your wallet with the locked MGN in order to have it counted for Reputation distribution. This is done in the vote staking interface.

That’s it! The DutchX MGN Pool contract provides a simple way to generate MGN on the DutchX requiring minimum intervention.

*Important Note: You should be aware that due to price fluctuations, it is highly likely that participants will withdraw a substantially lower amount than they deposited. Once you withdraw your tokens, you will receive the same type of token you initially deposited.

For more technical information on how the DutchX MGN Pool contract works, visit the GitHub page and our additional documentation.

slow.trade

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slow.trade lets users interact with the DutchX, a decentralized ERC-20 trading-protocol using the Dutch Auction Mechanism to achieve fairer prices

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