TLDR: Trader Incentives on Mycelium Perpetual Swaps

The most cost-effective Perpetuals platformTLDR: Trader Incentives on Mycelium Perpetual Swaps

Mycelium Perpetual Swaps launched on Ethereum Layer 2, Arbitrum, in August 2022.

Traders on the platform can enjoy trading leveraged positions with for 9bps (or 0.09%) entry/exit, with no price impact on a range of assets: BTC, ETH, USD, LINK, BAL, FXS, & CRV!

We know the number one priority for our traders is trading with liquidity, which is why our Mycelium Liquidity Pool (MLP Token holders) are incentivised to earn 70% of fees generated on the platform, averaging a return of ~25-45% for LPs.

Our mechanism is optimising returns for our LPs. 70% of fees generated are rewarded to MLP holders, 25% to Mycelium Treasury, and 5% for our active traders.

Traders 🤝 Mycelium Perpetual Swaps

Trade with liquidity: Liquid markets for BTC, ETH, UNI, LINK, BAL, FXS & CRV!

Trade with leverage: up to 30x!

Trade with low fees: 9bps entry and exit fees [without price impact!]

Trade with Mycelium.

How we’re incentivising our traders?

Earn fees: We know at their core, traders are competitors always looking to demonstrate their edge: that’s why we will be distributing 5% of the platform’s generated fees back to the top 5% of traders. The distribution will act as a fee rebate to reward active traders.

More markets: Mycelium Perpetual Swaps has the largest range of perpetual swaps markets on Arbitrum! Trade on the volatility of the market with liquidity for new trading markets: BAL, FXS & CRV in addition to BTC, ETH, LINK, & UNI.

Quick guide of terms:

MLP is our liquidity provider token: LPs accrue 70% of the fee revenue. LPs mint MLP when they deposit MLP Pool Assets for the Traders to trade against.

MYC is our governance and utility token. 25% of trading fee proceeds go to the Mycelium Treasury. MYC holders can stake their MYC in Mycelium’s staking contracts to earn rewards. By staking MYC to earn APR rewards in ETH, stakers are entering a loan agreement with the MYC Treasury.

Entry/Exit fee: There is a very low trading fee of 0.09% of your position size (both on entry and exit), which is incurred when opening a position and closing a position.

Borrow fee: The borrow fee is the fee that is paid to the counter-party (MLP pool) of your trade at the start of every hour, over the trader’s holding period. The formula for this fee is:

30x leverage: Our traders can enter a position at up to 30x leverage, but will only get liquidated at 100x.

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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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