Read time: 1 minutesOctober 20, 2022

$MYC Staking: Instant rewards

Upgraded $MYC Staking contracts: instant deposits, withdrawals, and ETH rewards. $MYC Staking: Instant rewards

Hello $MYC holders. We’ve got good news.

No more 2 week cycles.

No more lock-ups.

No withdrawal requests.

No deposit requests.

No waiting to see rewards balance.

We’re upgrading the $MYC Staking contracts to a continuous rewards cycle.

What is means:

  • Deposit at any time and start earning immediately
  • Withdraw at any time without waiting for a cycle to end
  • ETH rewards will be distributed continuously

How we’re doing it:

In order to distribute rewards continuously we will need to deploy a new staking contracts, which will require a manual migration of the existing $MYC staked in the cycle-based contracts.

Rather than asking all existing MYC stakers to withdraw from the contracts and re-stake, Mycelium will be doing this by upgrading the current staking contract to add a migration function. A permissioned address run by a Mycelium core team member will be able to call the migration function that will move user funds from the existing staking contract to the new staking contract. This will happen automatically, and doesn’t require any action on behalf of existing $MYC Stakers.

When will the new contracts come into effect:

~Early next week. We wanted to let everyone know that we will be working behind the scenes to deploy the new contracts and migrate the existing $MYC. We will provide another update when the new staking contracts are live and rewards are being distributed continuously.

**What happens to my $MYC that is already staked and earning rewards? **

The Mycelium development team will work over the next week to migrate the existing staked $MYC over to the new contracts so that stakers can start earning continuously. Before funds are migrated, the staking cycle will be ended and current stakers will be paid out their earned rewards.

What will happen to $MYC that has ‘requested deposit’ for the next cycle:

If you have deposited your $MYC and waiting for it to start earning rewards, this $MYC will be migrated and deployed automatically to start earning rewards when the team switches to the new staking contracts.

If you have ‘requested withdrawal’ of $MYC for the next cycle:

If you would like to earn rewards continuously you will need to re-stake your MYC once it is unlocked on when we end the cycle early upon contract migration.

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All of Mycelium’s products are hosted on Ethereum Layer 2, Arbitrum. Users will need to bridge their assets to Arbitrum in order to trade Perpetual Swaps, Perpetual Pools, or Lend via MYC Lending.

Arbitrum is a secure, low-cost scaling solution that ensures our users can access low-cost derivatives in a safe, simple, and speedy environment.

If you need assistance bridging your assets, our team has prepared a guide here.

Mycelium Perpetual Swaps is a decentralised derivative platform, which allows users to open leveraged long and/or short positions on crypto-assets.

Perpetual Swaps are similar to a Future where traders can take a position based on the future price of an asset, the key difference being Perpetual Swaps mechanisms allows traders to take this position at an unspecified point in the future, making it ‘perpetual’ or unable to expire. Mycelium Perpetual Swaps allows traders to take a position on digital assets such as Bitcoin and Ethereum.

Mycelium Perpetual Swaps doesn’t use an order book model for leveraged trading. Rather, all traders trade against the Mycelium Liquidity Pool (MLP). The MLP is a basket of blue-chip assets and stablecoins pooled together (ETH, BTC, LINK, UNI, BAL, CRV, FXS, FRAX, USDT, DAI, USDC) which acts as a global AMM for leveraged trading. Liquidity providers can deposit any whitelisted asset into the MLP pool in return for MLP tokens, which represent the LPs share in the diversified liquidity pool. By acting as a universal counterparty (AMM) to traders, meaning that it agrees to be the counterparty to any long or short trade at the given price, for an asset it holds, until it runs out of said asset.

In exchange for providing liquidity to the Mycelium Liquidity Pool (MLP), liquidity providers earn rewards. Primarily, MLP holders earn 70% of fees generated on the platform, which is distributed fortnightly in ETH and or esMYC.

  • ETH Rewards: The MLP pool earns 70% of fees generated from swaps and leveraged trading. These fees are converted to ETH, before being continuously distributed to MLP stakers.
  • Escrowed MYC Rewards: These are rewards in the form of a token which has the right to vest into $MYC when staked in the esMYC vesting vault.

The trading fees that make up this revenue are entry/exit fees, borrowing fees, and or a spot trading fees. For a full overview of the trading fees, visit this page.

Additionally, LPs earn rewards from a small bid/ask spread that is charged on long-tail assets (there is no spread on BTC or ETH). These rewards accrue as MLP, shown on our front-end as Market Making APR. These rewards can be redeemed at any time, in any asset form within the MLP basket of assets.

Yes. Perpetual Pools are a marketplace for leveraged tokens, while perpetual swaps simulate spot trading with margin. They are both derivatives, but Perpetual Pool tokens act most like a leveraged ETF, where positions are transferable.

Mycelium Staking is a program established by Mycelium to give utility to our governance token. MYC holders can stake their $MYC to earn ETH rewards. MYC Stakers effectively enter a loan agreement with the Mycelium Treasury to lend their MYC. The Loan Cycles occur fortnightly, meaning deposits and withdrawals are processed at the beginning/end of each cycle. Stakers can request withdrawals throughout the cycle, noting the withdrawal will be processed and distributed at the end of the cycle.

Don’t worry, you are earning rewards! The rewards only show at the end of the 14 day loan cycle.

The way the Perpetual Pool market calculates how much money to move from the losers to the winners prevents the loser from ever losing 100% of their money. The pool does this by, in extreme scenarios, sacrificing some of the gains of the winners in order to protect the losers from losing everything. This is why we say Perpetual Pool positions cannot be liquidated.

However; this does not mean you cannot lose money by trading with Perpetual Pools.

In August 2022, TracerDAO voted to transition and rebrand to core service provider Mycelium, and $MYC as the native token. All TCR holders are entitled to change their token 1:1 to MYC via this site:

The majority of TCR holders have migrated to MYC, but the site will remain active for approx. 3 years to ensure all TCR holders have the opportunity to migrate.

When a trader enters a short position, the liquidity pool will fully collateralise the position with stablecoins. For short positions, the liquidity pool is essentially a market maker that takes the opposite side of the position, increasing the long exposure of the pool. If the price of the base asset depreciates, the trader receives stablecoins from the liquidity pool. If the price of the base asset appreciates, the liquidity pool receives a portion of the user’s margin as compensation.

At close, the trader will only have to return the USD value of the initial notional value to the liquidity pool. Thus, the trader is effectively entitled to the inverse of the future “PnL” (Profit and Loss) of an asset.

With Perpetual Pools v2, users can deposit any sort of collateral for maximal optionality. Additionally, there is no minimum-commit size.

On Mycelium Perpetual Swaps traders can access up to 30x Leverage. On Mycelium Perpetual Pools traders can access up to 10x Leverage.

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More Leverage. Less Overhead