Maker Liquidity Pool (USDT ERC-20 & FXCore) — Epoch 4

[orbitant]

Epoch 4: Maker Liquidity Pool — 60% Platform Fee Reward


Summary:
Participants of Epoch 4 - Maker Liquidity Pool (“Maker LP”) shall be entitled to 60% of MarginX’s net platform (trading) fee and the rewards shall be distributed in $FX at the end of Epoch 4.

Duration: 13 April 2023 – 11 May 2023

Maximum pool cap: 550,000 USDT

Maker Liquidity Pool USDT (ERC20): 500,000 USDT allocation on Ethereum

Maker Liquidity Pool USDT (FXCore): 50,000 USDT allocation on f(x)Core

Overview
The quest for stress-free trading continues with MarginX Epoch 4.

Building on the popularity of Epoch 3, the MarginX Epoch 4 will be rewarded with 60% net platform fee in $FX at the end of the program.

Participants shall share the risk and reward from the performance of the Maker LP proportionally, and in return, a portion of the net platform fee shall be shared among the participants.

In short, participants will be able to provide liquidity, and in turn earn a portion of MarginX’s net platform fee.

**PLEASE TAKE NOTE THAT, USERS MIGHT LOSE THEIR FUND (NO 100% GUARANTEE PRINCIPAL)**

Things to note:

• ONLY private blockchain wallets can participate. Please do not send funds from an exchange.
• There are no principal guarantees for this version of the MarginX Liquidity Pool.
• $ETH is required to pay the gas fees for USDT (ERC20) withdrawals.
• $FX is required to pay the gas fees for USDT (FXCore) withdrawals.
• Participants need to request for withdrawals manually on maker.marginx.io.
• MarginX is not liable for any loss of funds due to user’s negligence.

MarginX Net Platform Fee Distribution

MarginX net platform fee = Platform fee - Trading fee rebate - Referral commission

Distribution of MarginX net platform fee:

60% goes to Maker LP rewards

10% goes to Insurance Pool

30% goes to MarginX Treasury

MarginX Maker LP Rewards (New!)

New Maker LP rewards = Trading profit/loss + 60% of net platform fee

For example:

60% of net platform fee is 60,000 USDT, monthly price of $FX is $0.2, MarginX will buy 300,000 $FX (60,000 / 0.2) from the open market and distribute it to all participants.

Alice contributes $300,000

Bob contributes $200,000

Charles contributes $250,000

Alice shall get 120,000 $FX (300,000/750,000 * 300,000 $FX);

Bob shall get 80,000 $FX (200,000 / 750,000 * 300,000 $FX);

Charles shall get 100,000 $FX (250,000 / 750,000 * 300,000 $FX)

However if the maker liquidity pool lose $10,000 on epoch 3, the loss shall share among the withdrawal parties

For example, if Alice and Bon made the withdrawal request (300,000 and 200,000)
Alice will only get back $294,000 [(300,000 - (10,000 * 300,000 / 500,000)]
Bob will only get back $ 196,000 [200,000 - (10,000 * 200,000 / 500,000)]

Reference:
MarginX has made a net platform trading fee of 18,585 USDT (16 Mar - 12 Apr) during Epoch 3.

Introduction to Maker Liquidity Pool (USDT ERC-20) — Beta

[engeen]

Hello! I had almost $35k on deposit in the Maker liquidity pool, I requested a withdrawal, and today I saw that only $7.6k were available for withdrawal. How is this possible? Minus almost 80%. Please help me figure it out!!!

[orbitant]

Hi, Can you pm me your wallet address, and I’ll get dev to check on.

[engeen]

Hello! I have sent my wallet address to you by private message.

[orbitant]

Devs are still checking on this … they’ll do a calculation and revert by next Wednesday. Thank you for your patience.

[orbitant]

Hi there, thank you for your patience!

We have received feedback from the community over the way losses were handled in Epoch 3, and we listened. Although the calculations were laid out in our T&Cs, we understand how some of our members would feel aggrieved by the outcome.

After conducting an in-depth analysis, we have agreed to implement, retroactively, a fairer way for the losses to be distributed. This would mean lower losses for most of the users who submitted withdrawal requests during Epoch 3. We will also open up an additional period for these users to withdraw any remaining tokens from their initial deposit.

This additional withdrawal period will be announced on 25 April 2023, once we finalize the backend upgrading.

Epoch 3 Stats:

Maker LP Status
Individual Loss: 7.86%

AI Bot Status
Individual Loss: 5.49%

------------------------------

We have also made the following changes moving forward.

At Present:

The current market practice for many Liquidity Pools involves converting losses into “debts”. Only users who submit withdrawal requests for that epoch will share the cost of these “debts”.

This mechanism allows the pool to “rebalance/restabilize” itself, thus penalizing those requesting withdrawals if the pool suffers from any losses.

This calculation works the same way for wins and profits. Code as below:

New Proposed Improvement:

To ensure a fairer and improved system for all, MarginX will be implementing a different practice for Epoch 4 and beyond. Any loss (or debt) will be proportionally borne by each individual wallet address in the pool, instead of penalising only those who submit withdrawal requests. Likewise, for profits.

---

Thank you once again for your patience and support.

We believe this is the right and fair thing to do, and we will continue working to create better products for the community!

[sinainthecity]

Thank you for your work. I know it’s beta version and still working on to build the better version as possible. I’ll support you by letting liquidity in the app.

Cheers.

[orbitant]

@sinainthecity

Thank you for your work. I know it’s beta version and still working on to build the better version as possible. I’ll support you by letting liquidity in the app.

Rest assured that we will roll out more products once our latest Roadmap is completed. (We’re almost there!)

Thank you for your support!

Cheers!

[engeen]

Hello! Please tell me, “we agreed to implement a fairer way of distributing losses retroactively” does it mean that I can hope for partial compensation for my incommensurable losses, or is this money lost to me forever?

[orbitant]

Hi,

@engeen

Hello! Please tell me, “we agreed to implement a fairer way of distributing losses retroactively” does it mean that I can hope for partial compensation for my incommensurable losses, or is this money lost to me forever?

Based on the pool which you’ve participated in, the loss amount will be as follows (instead of minus 80% as you mentioned earlier).

Epoch 3 Stats:

Maker LP Status
Individual Loss: -7.86%

AI Bot Status
Individual Loss: -5.49%

After the system upgrading, you will see the adjustment after connecting your wallet.

[engeen]

Great! Thank you, I was always sure that you would find the optimal solution, I fully support you!

[Drillz]

After the upgrade I think our losses will be in USDT and I hope when there is a profit it will also be in USDT and not FX because it’s becoming a little bit confusing now.How sure are we this market makers are not just gambling with users funds because they don’t bear any of the loss and still they get to get commissions in the months of profit.

[orbitant]

Hello,

Thank you for the questions.

Will break into 2 parts as below…

@Drillz

After the upgrade I think our losses will be in USDT and I hope when there is a profit it will also be in USDT and not FX because it’s becoming a little bit confusing now.[/quote]

Yes. All profits/losses will be in USDT (ERC20/FXCore) based on user’s initial deposit.

Only rewards are based in $FX (using 60% of trading fees collected and buying from market) in this Maker Liquidity Pool.

@Drillz

How sure are we this market makers are not just gambling with users funds because they don’t bear any of the loss and still they get to get commissions in the months of profit.

After closely monitoring the market conditions, we have identified that the current beta version of the Maker Liquidity Pool system is not meeting the demands of the market. The mechanics of the liquidity pool system are not providing a balanced experience for both liquidity providers and users, which is hindering the overall performance of the system.

To address this issue, our team is committed to upgrading the current liquidity pool system in the next epoch. We will be working closely with our institutional partners to gain insights into the specific challenges faced by larger market participants.

Our team is dedicated to ensuring that Maker’s liquidity pool system is the best in the market, and we are confident that by working with our institutional partners and implementing the necessary upgrades, we can achieve this goal and provide a more balanced experience for everyone involved.

Cheers!

[orbitant]

These are the wallets requested withdrawals for Epoch 3 and their remaining tokens (adjusted balance) receivable.

We will further update on 25 April 2023 on withdrawal procedure.

Thank you for your patience and support once again.

[Drillz]

Thank you for clarifying things up.Personally I’m not interested in the Maker Pool because the risk involved is too much and with a loss of 7.86 Percent in the first Epoch alone it’s not looking good.I just will prefer to provide liquidity so maybe next Epoch there should be a separate pool for each and people can decide which one they want to participate in.Nothing is known about this market makers so how sure are we they won’t be doing thing best to their own interest and in the end they are also not liable for any loss,I think this model is very risky and with what we have seen in crypto world recently I wouldn’t trust anyone to manage my funds like that.

[orbitant]

We appreciate your feedback and understand that the MarginX Liquidity Pool may not be suitable for all users’ needs.

However, we are committed to building a comprehensive infrastructure that caters to the diverse requirements of the crypto market.

The MarginX Liquidity Pool is just the first step in our journey towards providing a broader range of services.

As we continue to develop and expand our platform, we will take into account the feedback and suggestions from our users to create a more inclusive and versatile ecosystem that meets the needs of all market participants.

We are excited about our roadmap for the future and are confident that there will be something for everyone.

Thank you once again for your feedback.

Road Map
https://forum.pundi.ai/t/the-road-ahead-for-marginx-beyond-just-a-decentralized-perpetuals-exchange/

[orbitant]

@orbitant

These are the wallets requested withdrawals for Epoch 3 and their remaining tokens (adjusted balance) receivable.

We will further update on 25 April 2023 on withdrawal procedure.

Hi all,

All (adjusted balance) receivable has been transferred to your wallet address directly.

Do check your wallets for balance and transaction records.

Once again, thank you for your patience and your support.

Cheers!

[Danny]

Maker Liquidity Pool performance report (epoch 4 - first half )

Summary
Maker liquidity pool makes a trading profit of $1050.30 (0.267%);

Epoch:4
Duration: 21/4/2023 - 27/4/2023
Reporting Date: 2/5/2023

Part 1: Balance

Address	Trading Pair	Initial Balance	Current Balance
0xF937CE482E067B315446A1f63E48FFF599C788DB	BTC-USDT	131,043.99	130,799.35
0x83ED913a3f7adC173f05e3bF60b5AA9dfaBFc3e6	ETH-USDT	133,564.40	133,475.20
0x17C2003c23604dC67845947A7514FddFB427cfe9	FX-USDT	127,812.58	128,759.61
		392,420.97	393,034.16

2. Key parameters (cumulative)

Name	Address	Trading Pair	Trading Volume	No. of Transactions
Maker LP
Maker LP BTC	0xF937CE482E067B315446A1f63E48FFF599C788DB	BTC-USDT	22,406,958.70	10,009,865
Maker LP ETH	0x83ED913a3f7adC173f05e3bF60b5AA9dfaBFc3e6	ETH-USDT	8,764,437.83	10,670,202
Maker LP FX	0x17C2003c23604dC67845947A7514FddFB427cfe9	FX-USDT	3,243,604.46	9,598,128
		Total	34,415,000.99	30,278,195

3. Profit and loss (cumulative)

Address	Trading Pair	Opening Bal	Closing Bal	PNL
0xF937CE482E067B315446A1f63E48FFF599C788DB	BTC-USDT	130,905.17	130,799.35	-105.82
0x83ED913a3f7adC173f05e3bF60b5AA9dfaBFc3e6	ETH-USDT	133,316.18	133,475.20	159.02
0x17C2003c23604dC67845947A7514FddFB427cfe9	FX-USDT	127,762.51	128,759.61	997.10
	Total	391,983.86	393,034.16	1,050.30

[moleculeboost]

Maker pool should have a higher probability of making money in a bear, due to fact that traders are usually long, and since we are taking the short side, we make money. Is this over simplistic idea correct @orbitant ?

@Drillz I understand ur concern as do I, but I think over the long run the house always win, no?

Another thing, can we know how the APR of 23% is determined? This % is on the main page of https://maker.marginx.io

Am excited about this and hope we can find a way for more traders to know about Margin X.

[Drillz]

The dynamics of the pool making money is confusing to me as well.The concept of buying FX with platform fee also works against you because in the case you want to swap them you will lose nothing less than 10 percent and couple that with when the maker pool makes a big loss in the same month.I think I will just have to step back till things are a bit more organized as I don’t want to use all my principal to pay debts incurred by market makers that tend to lose nothing and bear no risk.Over 6k personal loss in one epoch is not something I will like to see again.