MonoX Profitability and LP Revenue Share
We launched our product on October 20th. Since then, it’s certainly been a busy time for our community and team. MonoX is just getting started. We have lots of exciting developments coming up so stay tuned!
In the meantime, we wanted to give another update to our community about our profitability, and announce an initial revenue share with our LPs.
Regular DEXs make money solely from their trade fees. Of course, 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
At MonoX, we generate revenue from trade fees (0.3%) but also from vCASH, holding the protocol together. We achieve single-sided liquidity by creating a virtual pair with our vCASH stablecoin. Each pool starts with 0 vCASH and through the trade activity, our pools begin to accumulate a vCASH balance.
We 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
Since our launch, we have made ~$500K in profit.
Early LP Revenue Share
Because we recently launched, our 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 our early LPs, we have decided to distribute 10% of our vCASH revenue back to our LPs. We 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 you deposited liquidity into. The more profitable the pool resulted in a higher revenue share distribution for LPs of said pool.
We sent out Polygon distributions on Tuesday 9th of November. The team will send out Ethereum distributions ASAP but when GAS prices have come down more.
We are excited about the future and will continue to give back to our community and Liquidity Providers as time goes on.
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.
It works by grouping deposited tokens into a virtual pair with our own vCASH stablecoin, to offer a single token pool design.
MonoX will revolutionize the DeFi ecosystem by fixing the capital inefficiencies of current protocol models. With lower trading fees, capital efficiency, and zero-capital token launching — MonoX will expand the capabilities of DeFi.
📱 Stay Connected
Follow our official social media accounts and visit our website to stay up to date.
Website | Documentation | Twitter | Telegram | Discord
🚨 IMPORTANT
Be careful of fake Telegram groups, and Twitter accounts trying to impersonate MonoX. $MONO tokens ARE NOT in circulation.
Always verify that you are on our official Twitter page, Telegram group, or Discord
* The interest rates and APYs may change. The APYs were accurate as of 10/20/2021.
