MUX is an up-and-coming multichain perp protocol with a unique Arbitrum-based aggregator. This article teaches readers how to use the MUX protocol for trading, LPing, and earning protocol income from MUX.
From opening long/short positions on the protocol to staking MUXLP and locking MCB for MUX – this is a concise guide to using the protocol as a crypto participant.
How To Use MUX For Trading, LPing, and Earning Real Yield from MUX
Mux is an up-and-coming perp trading aggregator and perp trading protocol that offers competitive fees and leverage for crypto users today.
In this article, we’ll dive into the different ways you can use MUX protocol, showing you:
- How to open, close, and manage positions as a trader
- How the aggregator’s position routing works
- How MUX helps you pick the most suitable underlying protocol based on your trade for the best cost and experience while letting you boost your leverage to 100-150x depending on the token
- How to supply liquidity to MUX and stake MUXLP to earn protocol income
- How to lock $MCB to obtain $veMUX for protocol income
How to use MUX protocol as a trader:
1. Go to https://app.mux.network/#/ref/blocmates to launch the MUX protocol, and click “Launch MUX V2” to enter the protocol
2. Click “Connect Wallet” at the top right hand corner, and connect your wallet.
These are the current wallets you can use with MUX protocol:
As of now, MUX currently supports BSC, Optimism, Arbitrum, Fantom, and Avalanche for users.
However, its perp aggregator is only available on Arbitrum, so it’s recommended to open up your trades on Arbitrum for lowered trading costs, better margin utilisation and increased leverage.
Once connected, the next thing to do is to open a trade!
Here’s how you do that:
- Select a market/pair you want to trade and allow Mux’s aggregator to give you the best possible liquidity source for the trade.
To do that, navigate to the market/pair list by clicking on the ticker underneath the MUX logo:
Then, a list of tokens will open up. Simply select the token/pair you’d like to trade:
2. Then, you can select your position direction (Long/Short), size, as well as leverage multiplier on the right-hand side of the screen.
Based on your position size and trade cost, the MUX aggregator will route your position to the best protocol suited for your trade. You’ll also be able to see the underlying protocol in the top right corner of the price input field. In this case, you can see the MUX logo right next to the “Market Price” section for ETH.
3. To further adjust your TP/SL points, you can click on the text “Advanced” to open up further options, as well as profit estimations/losses on your TP/SL points.
4. Make sure to check your liquidation point, fees, and various details of your trade below before entering your trade. Note that the possible profits of any trade may not be given out in your collateral used for your trade, and depend on the token/liquidity source of the trade. In this specific example, you’ll be paid out in ETH instead of USDT.
5. To confirm your trade, simply click the “Long TOKEN” button below, and approve the transactions needed to open the trade:
You’ll have to approve spending on MUX protocol, and then confirm the transaction to enter your trade.
6. You can monitor your trade on the protocol’s website similar to any CEX perp platform
7. To update/change your position, simply click “Close” to open up further options:
8. And to add to your position, simply go through the previous steps to add more size to it. You’ll also see your position entry relative to the mark price on the chart once you’ve entered it:
And that’s how you can use MUX protocol to go Long or Short on various tokens available on it!
So why should you use MUX for your on-chain leverage perp trading, as opposed to other protocols?
Well, MUX allows you to access GNS, GMX, and MUX’s own markets on its protocol, saving you the time and energy to use separate perp trading protocols:
On top of that, MUX’s aggregator automatically selects the best route for your liquidity and also allows you to go up to 100-150x leverage on your trades.
And if you use MUX to open up the exact same position you would in GMX with the same leverage, you’ll have a better liquidation price for free, as MUX lowers the Maintenance Margin rate needed for your trades.
While leverage on GMX is limited up to 50x, MUX’s aggregator allows you to increase that leverage to 100x and more, through its unique Leverage Boosting mechanism.
How to Supply Liquidity & Stake MUXLP to Earn Protocol Income
What makes MUX an amazing protocol that’s emerged in this bear market is its real yield and protocol income, even with a smaller user base than other top perp protocols.
The protocol has earned over $650,000 cumulatively and earns anywhere from $12,000 to over $70,000 on a daily basis depending on volumes traded on it.
And if you provide liquidity to the protocol and stake MUXLP, you too can earn from the protocol’s consistent income.
Here’s how you do this:
1. Navigate to the Liquidity page of the protocol: https://app.mux.network/#/liquidity/stats?chainId=42161
2. Then, click the “Buy / Sell MUXLP” button to be taken to this page: https://app.mux.network/#/liquidity/muxlp-trade?chainId=42161
3. From there, click “Select a Token” to open up the various tokens available on your wallet that you can swap into MUXLP:
4. Then, you can swap the token you’ve chosen into MUXLP:
5.Then, click “Buy MUXLP”, and approve the spending cap of the token in your wallet, and then approve the buy transaction afterward.
You’ll then have to wait for 15-20 minutes for your order of MUXLP to be filled:
6. Afterward, go to: https://app.mux.network/#/stake/muxlp?chainId=42161 and click the “Stake MUXLP” button, and approve the staking transaction.
You’ll then be staking MUXLP for currently, 61.43% APR.
7. After some time has passed, you’ll be able to claim your MUXLP rewards through the “Claim Rewards” button. You’ll be paid out in ETH, as well as additional MUX tokens as an incentive for staking your tokens. That’s what makes MUX a great protocol to provide liquidity, and stake tokens for: you’re being paid not in an inflationary token with no real value, but ETH!
MUXLP rewards are distributed linearly at all times, making it easy for you to have real yield from your MUXLP staking on autopilot.
The additional MUX rewards can be vested into MCB over a 12-month period.
How to Lock MCB or MUX for veMUX and earn protocol income as well as MUX rewards
If you’ve got MCB or MUX via staking MUXLP, you can lock them for veMUX and more yield on your tokens.
To do this, simply go to: https://app.mux.network/#/stake/vemux?chainId=42161 and choose which token you’d like to lock for veMUX:
You’ll have a higher APR depending on your lock period, giving you governance rights to MUX, as well as further exposure to the protocol’s income.
As of now, the majority of MCB has been locked for MUX up till 2027, showing the long-term conviction of MUX protocol users in the protocol’s longevity:
Best part of locking your MCB into MUX to earn MUX protocol’s income? You’ll be rewarded in ETH mainly, with additional MUX rewards, similar to staking MUXLP. The MUX can be vested into MCB over a 12-month period, providing additional yield/incentives for staking your MCB.
Once again, what makes staking/providing liquidity for MUX so attractive is that you’re not being given emissions of a coin with little liquidity and/or little value behind it – you’re earning ETH from a protocol with hundreds of daily users, and over $60,000 in daily income!
For veMUX holders, your rewards are distributed every Thursday UTC.
How MUXLP / veMUX rewards are calculated:
The protocol income collected from trading fees and DEX mining yield are allocated as follows:
– Total Protocol Income × 70% × POR: Allocate for veMUX holders (in ETH)
– POR is the rate of Protocol Owned Liquidity
– Currently ~ 40% of the liquidity pool is protocol-owned liquidity, so the POR is currently 40%. This number can change as the TVL changes.
– Total Protocol Income × 70% × (1 – POR): Allocate for MUXLP stakers (in ETH)
– Total Protocol Income × 30%: Purchase MUXLP and add as protocol-owned liquidity
This means MUXLP stakers are currently rewarded 28% of the protocol’s income (mid-high 5 figures generated daily), while veMUX holders are rewarded 42% of the protocol’s income.
veMUX holders benefit from the possible price appreciation of $MCB as crypto participants purchase the token to gain yield and exposure to MUX protocol, whereas MUXLP stakers benefit from a less volatile, but stable price appreciation of MUXLP as the protocol grows over time.
After going through this article, you’ve got everything you need to know to start using MUX protocol for perp trading, as well as how to provide liquidity, stake MUXLP and/or vest MCB/MUX to earn protocol income.
What makes MUX highly attractive is its low market cap and valuation compared to other competitors in the perp dex space, alongside its aggregator, and a fast-shipping team that continues to ensure MUX users get the best experience possible when trading with leverage on-chain.
And if you’d like to get started using MUX protocol with an additional discount with Blocmates’s affiliate link go to: https://app.mux.network/#/ref/blocmates
For further information on MUX protocol, and its tokenomics, product-market-fit and more, go to: https://blocmates.com/blogmates/what-is-mux-protocol-a-complete-guide/