Read time: 5 minutesOctober 28, 2022

Mycelium joins Chainlink BUILD

Mycelium Enters Chainlink BUILD Program to Accelerate the Adoption of Our DeFi EcosystemMycelium joins Chainlink BUILD

Mycelium Enters Chainlink BUILD Program to Accelerate the Adoption of Our DeFi Ecosystem

We’re excited to announce that Mycelium is officially joining the Chainlink BUILD Program. As a part of BUILD, we aim to accelerate ecosystem growth and the long-term adoption of Mycelium’s DeFi products by gaining enhanced access to Chainlink’s industry-leading oracle services and high-quality technical support, as well as incentivizing greater cryptoeconomic security. In exchange, we will commit to paying network fees and offer other benefits to the Chainlink community and service providers, including stakers.

Having operated a Chainlink node since 2019 and with a proven history of delivering data for over 1,000 data feeds to 10+ blockchains, Mycelium has long been an active participant and believer in Chainlink. Our participation in BUILD furthers the integration with Chainlink, with the added benefits of priority support from the Chainlink ecosystem, increased access to dApps needing Chainlink Price Feeds, and stronger incentive alignment between the Chainlink and Mycelium communities.

We’re confident that through enhanced support, enhanced access to secure off-chain services, and the backing of Chainlink’s vibrant community, we can accelerate awareness of Mycelium’s perpetual product offerings on decentralized environments. Through this, we hope to realize the widespread adoption of financial market infrastructure on public blockchains that is open, transparent, and accessible to all.

An Ecosystem of DeFi Services

Since 2019, Mycelium has been building smart contracts for the decentralized economy. Akin to Chainlink’s vision to connect individuals to new markets and information in a trust-minimized environment, Mycelium is committed to offering efficient and accessible financial infrastructure that unlocks new financial opportunities. Currently, we’ve started with two flagship DeFi offerings on Arbitrum: Mycelium Perpetual Swaps and Mycelium Perpetual Pools. In simple terms, both offer users a platform to manage and take risk on the digital assets that matter to them. In traditional markets, these products are siloed and closed systems, but with Mycelium’s smart contracts - and the help of Chainlink’s decentralized oracle networks (DONs) - we are able to bring these tools to everyday users.

Mycelium Perpetual Swaps is a cutting-edge leveraged trading platform. Users can open positions on allow-listed digital assets as a tool in larger trading strategies meant to hedge risk, amplify expected yields, and more. Mycelium Perpetual Pools enable the creation of leveraged tokens—assets that track the price of underlying assets to move by a multiple of that amount. Initially focused on digital assets, Mycelium’s long-term view remains focused on bringing real-world markets to users via smart contracts that will have a meaningful and lasting impact on how individuals manage their financial risk. Water, fuel, crop, and carbon markets are some such examples, which have a heavy economic impact on societies without the appropriate levers to manage risk. Mycelium’s derivative smart contracts have the power to change that, empowering infinite avenues for market-specific wealth and risk management.

Chainlink decentralized oracle networks (DONs) play a powerful role for each Mycelium DeFi offering by providing secure, reliable, and decentralized market data needed to help power secure functionality. Whether it’s liquidations on Mycelium Perpetual Swaps or price-tracking for leveraged tokens built through Mycelium Perpetual Pools, Chainlink provides time-tested price data feeds necessary for us to operate to the standard that our users expect. Chainlink’s DONs will play a vital role in Mycelium’s long term vision to create financial infrastructure that changes existing economic relationships. Mycelium wants to improve access and efficiency to any financial market, and Chainlink is an integral partner in that infrastructure pipeline.

Why We Joined Chainlink BUILD

Mycelium joined BUILD to maximize the benefits of security and reliability that Chainlink’s oracle infrastructure provides. As part of BUILD, we will receive key benefits, including increased access to and integration of Chainlink Price Feeds, on-chain data security for select Chainlink Data Feeds provided through Chainlink Staking, access to new Chainlink product alpha and beta releases, and dedicated technical support by the Chainlink Labs team, among other benefits.

In exchange for these services, Mycelium will make available economic incentives by allotting multiple percentage points of its token supply to Chainlink service providers, including stakers that secure oracle services relied upon by Mycelium Perpetual Swaps and Mycelium Perpetual Pools as well as future products. In turn, Chainlink service providers can participate in Mycelium DeFi and are further incentivized to contribute to the security and reliability of our DeFi services. These mutually aligned economic incentives enable both communities to support one another.

“We’re excited to have Mycelium join the Chainlink BUILD program, which aims to create a more robust incentive alignment between Mycelium and the Chainlink ecosystem. The enhanced support by the Chainlink ecosystem helps the team create secure DeFi products and aims to kickstart widespread adoption of Mycelium’s current and future DeFi offerings.“ — Johann Eid, VP of Go-To-Market, Chainlink Labs.

“We’ve been a part of the Chainlink ecosystem for a long time, first as a node operator and then as a data consumer. We’ve seen firsthand the ecosystem impact that Chainlink has brought to DeFi. This is why we’re excited to join Chainlink BUILD, which gives us increased access to Chainlink’s industry-standard oracle services, dedicated technical support, and a robust cryptoeconomic model that empowers us to build world-class DeFi offerings. We’re very pleased to continue our collaboration together and we welcome the Chainlink community to join the growing Mycelium network.” — Patrick McNab, Mycelium CEO and Co-Founder.

About Chainlink

Chainlink is the industry-standard Web3 services platform that has enabled trillions of dollars in transaction volume across DeFi, insurance, gaming, NFTs, and other major industries. As the leading decentralized oracle network, Chainlink enables developers to build feature-rich Web3 applications with seamless access to real-world data and off-chain computation across any blockchain and provides global enterprises with a universal gateway to all blockchains.

Learn more about Chainlink by visiting chain.link or reading the developer documentation at docs.chain.link. To discuss an integration, reach out to an expert.

About Mycelium

Mycelium is the connective tissue for global digital markets. Since 2019 Mycelium has built core blockchain infrastructure, contributing to an ecosystem which delivers more accessible, equitable, and efficient financial markets to users. Establishing one of the first Verified Chainlink Oracle Node’s in 2019, and later launching two decentralized derivative products - Perpetual Pools and Perpetual Swaps - Mycelium’s mission is to provide trusted, secure tools that empower individuals to invest and create their own financial future on-chain.

To learn more about Mycelium, visit mycelium.xyz or join our network on Twitter.

Mycelium Docs
The home of Mycelium’s documentation

FAQs


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: https://migrate.mycelium.xyz/

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.

Swaps logo

More Leverage. Less Overhead