MoonSwap User Benefits

At this stage, the benefits that users can earn from MoonSwap are mainly divided into 3 parts:

Liquidity Provider market-making Profits, MoonCake Profits and Yield-Farming Profits.

MoonSwap Transaction Fee

There is a 0.3% fee for swapping tokens on MoonSwap.

Example:

Alice exchanges 1 cETH for cDAI, she will pay 0.003 cETH as a transaction fee;

Alice exchanges 1000 cDAI for cETH, she will pay 3 cDAI as a transaction fee.

Liquidity Provider market-making Profits

There is a 0.3% fee for swapping tokens, among them:

0.25% is allocated to liquidity providers. After the liquidity provider adds liquidity to a certain token pair in MoonSwap, he/she will receive MLP tokens. 0.25% of MoonSwap's total transaction volume will be sent to all liquidity providers as compensation.

The distribution of liquidity rewards is real-time, and it will be immediately invested in the liquidity pool.

In this process, the number of MLP tokens will not change, and the value of a single MLP token will increase. After the user removes the liquidity, the MLP token will be burned, and users will also receive tokens including liquidity rewards.

MLP Tokens are not speculative tokens to be traded. They are merely an accounting or bookkeeping tool to keep track of how much the liquidity providers are owed.

Examples:

Assuming that the current 1 cETH=1000 cDAI

When Alice provides 1cETH and 1000cDAI to the cETH/cDAI liquidity pool, there are a total of 10cETH and 10,000cDAI in the liquidity pool, and Alice will receive 100 MLP tokens. The liquidity held by Alice accounts for 10% of the total liquidity.

When transactions occur and Fees of 1cETH and 1000cDAI are generated, there are a total of 11cETH and 11,000cDAI in the liquidity pool. At this time, if Alice removes all her liquidity, 100 MLP tokens owned by Alice will be burned, and Alice will get 10% of the funds in the current liquidity pool, that is, 1.1 cETH and 1100 cDAI.

In other words, Alice's Liquidity Provider market-making Profits during this period is (0.1cETH + 100cDAI).

MoonCake Profits

There is a 0.3% fee for swapping tokens, among them:

0.05% is allocated to Staking Vault. This part of the Fee will be transferred to the MoonMaker contract in real time in the form of MLP, and automatically converted into cMOON every day and then transferred to the Staking Vault contract.

Users staking cMOON in MoonCake will get xMOON, 1 xMOON≠1 cMOON. As the amount in the Staking Vault increases, the value of xMOON will also increase.

The Staking Vault funds continue to grow and dividend every 14,400 blocks (about 2 hours). And the amount of the total dividend issued every 2 hours is 1/84 of the cMOON of the Staking Vault. The dividend is distributed among users based on their proportion of xMOON holding.

When users convert xMOON to cMOON, they will enter the "7-day consensus period". If the users harvest cMOON during the consensus period, 0.3% of the total amount of cMOON that can be harvested will be deducted and invested in the Staking Vault. After the 7-day consensus period is over, users can harvest cMOON without any loss.

At the current stage, xMOON is not transferable and non-tradable.

Example:

Alice staked 1000 cMOON in MoonCake. If the total amount of cMOON staked in MoonCake at this time is 10,000 cMOON, and the balance in the Staking Vault is 8,400 cMOON, then:

1xMOON = (10,000 + 8,400)/10,000 = 1.84cMOON

The amount of xMOON held by Alice at this time is (1000/1.84)

After 14,400 Conflux blocks, all users holding xMOON will receive a total of 100cMOON rewards. The reward received by Alice is:

1,000/10,000*100=10cMOON

If Alice converts her xMOON into cMOON at this time, the amount of cMOON she can harvest is:

1,000+10=1,010cMOON

If Alice harvests within the 7-day consensus period, the amount she can harvest is:

1,010-1,010*0.3%=1,006.97cMOON

If Alice harvests after the end of the 7-day consensus period, then the amount she can harvest is 1,010cMOON.

MoonMaker Contract: cfx:accy067mx7r1ctbcjvna2e2ut6pyen28kehg1b26ev

Staking Vault Contract: cfx:acf1kgzrdb78gh7d3xavpr9w5y06tzxnp2xcbmzs94

Yield Farming Profits

MoonSwap distributes 90% of the total tokens to liquidity providers. The tokens distributed every day are divided into 100 weights, and users can get cMOON by staking MLP tokens. cMOON will be allocated according to the proportion of MLP provided by users.

Example:

In the cMOON/cETH pool,

40,320 cMOON/day means that users who stake MLP tokens in the mining pool will get a total of 40,320 cMOON per day;

70x reward means that the cMOON received by the mining pool accounts for 70% of the total liquidity reward of cMOON;

APY 235.28% means that after users pledge MLP in this mining pool, the expected APY is 235.28%.

Tips: All numbers are calculated based on the Conflux block generation time 0.5s. Since the Conflux block generation speed will float on the line within 0.5s, there may be slight discrepancies between the actual number and the page display number.