Earn ePMX Participating in the Liquidity Mining Program
On October 17th, we have officially rolled out the Primex mainnet Beta. As a result, users can now trade and lend real digital assets on Polygon via the protocol.
The mainnet launch also marks the start of the Liquidity Mining Program, which includes rewards for Early Lender and Traders, as well as a mechanism that plays a crucial role in Credit Buckets’ lifecycle. At the same time, it also offers an opportunity for Primex users to earn ePMX rewards and a guaranteed APY reward of 7% in stablecoins for any bucket in any asset.
This article will explore the Primex Liquidity Mining Program and how participating users can benefit from it.
How to Earn ePMX in the Liquidity Mining Program?
The Liquidity Mining Program serves as a vital mechanism for incentivizing Early Lenders and Traders, as well as for launching new Credit Buckets. Let’s walk through them step by step.
Primex Credit Bucket Launch
The Credit Bucket Launch has two different stages. The first is the accumulation period, in which Lenders earn ePMX tokens for supplying liquidity to new Buckets. Their rewards depend on the size of their deposits and how early they provide liquidity. For that reason, the more assets they can supply and the earlier, the more ePMX Lenders can earn.
As its name suggests, the ultimate goal of the accumulation period is to accumulate enough liquidity to launch the Bucket and kickstart leveraged trading. In order to prevent sudden increases in interest rates and borrowing costs from depleting the Bucket’s liquidity, Traders do not have access to borrowing funds at this stage. At the same time, Lenders must forfeit all their earned rewards if they withdraw liquidity they supplied to a Bucket in the accumulation stage.
The protocol may deposit unused funds during the accumulation period to leading DeFi lending protocols such as Aave to earn additional interest.
Failure to accumulate sufficient liquidity within a specified timeframe makes the liquidity mining process unsuccessful. As a result, the Bucket won’t launch, and Lenders must decide whether to withdraw their funds or reinvest their deposit. Choosing the last option allows them to save a portion of their collected ePMX rewards.
In contrast, the Bucket launches if it manages to accumulate enough liquidity by the deadline, and liquidity mining proceeds to the next stage: the stabilization period. During this phase, Traders can borrow assets from Buckets for leveraged trading.
At the same time, Lenders start earning interest on the liquidity they provide backed by Trader borrowing fees, and they can withdraw their deposits without penalties or restrictions after the stabilization stage concludes. The size of the ePMX rewards they can claim is fixed at the end of the accumulation stage.
Please note that lenders who participated in the Accumulation stage are unable to withdraw their liquidity during the Stabilization stage.
Furthermore, Lenders depositing assets into Buckets in the stabilization stage have the flexibility to withdraw their funds at any time. However, they do not earn any ePMX rewards related to Buckets’ launch.
Primex Mainnet Beta Early Users Rewards
The Liquidity Mining Program will reward Early Lenders and Early Traders with ePMX tokens for supporting the protocol. Distributed from the Early Community pool, participants will receive ePMX rewards based on their role and activity:
- Early Lenders and Margin Traders receive continuous reward distributions on a per-second basis based on their deposits and loans.
- The rewards of Early Spot 1X Traders are distributed periodically based on their trading volume in a specified period.
Earn a guaranteed APY reward of 7% in stablecoins for any bucket in any asset within the Primex Liquidity Mining Program
The Primex Credit Buckets launch mechanism is divided into two stages: accumulation and stabilization. It is important to understand that during the accumulation stage, Traders cannot utilize the Lenders’ liquidity, which is why there is no APY in the bucket at this time.
However, Lenders can be assured that they will receive a guaranteed reward of 7% Annual Percentage Yield (APY) in stablecoins for any bucket of any asset during both stages. They will also receive ePMX distributed proportionally to the amount and lending period.
Please note that this reward will only be distributed once the stabilization period is completed. Also, please be aware that withdrawing your liquidity before the start of the stabilization period will result in no reward.
How Can You Use Earned ePMX Tokens?
ePMX features limited functionality compared to the fully functional PMX token that will be launched after Primex v1.
During the mainnet Beta stage, ePMX is untransferable between users. Instead, the token can be only transferred to and from predefined addresses, such as the Treasury and reward distributors.
Regarding the latter, ePMX features two primary utilities in the mainnet Beta. First, it is used to distribute rewards to Keepers, Early Lenders, and Early Traders. Besides that, Traders can utilize ePMX to pay the Protocol Fee at a discounted rate.
Can I Convert ePMX to PMX?
After Primex v1 advances to a stable stage, fully functional PMX will launch and replace ePMX as the protocol’s native asset. When this happens, holders will have the ability to exchange their ePMX for PMX tokens.
It’s important to highlight that users will only be able to convert between the mainnet versions of ePMX and PMX. Native tokens earned on the testnet serve only testing purposes without providing any financial value for their holders. For that reason, the ePMX earned on the testnet provides their owners no guarantees to redeem them into mainnet ePMX or PMX.
How to Join the Primex Liquidity Mining Program?
The Primex Liquidity Mining Program plays an important role in the ecosystem by enabling Buckets to accumulate sufficient liquidity for their launch. At the same time, it provides an opportunity for Early Lenders and Traders to earn ePMX rewards for active participation.
To get started, launch the Primex app and connect your wallet to the protocol.
As an Early Lender, select the “Buckets” tab under the “Lend” menu and click the “Deposit” button under your preferred Credit Bucket. Specify the amount of tokens to supply to the Bucket, click “Deposit” again, and confirm the transaction in your wallet.
That’s it! You will start earning ePMX until the Bucket’s accumulation stage concludes. Unless you withdraw your funds or the Bucket fails to launch, you will be able to claim your rewards at the end of the stabilization stage.
As an Early Trader, you can get started with liquidity mining by heading to the “Trading” tab inside the “Trade” menu. To earn ePMX rewards, you need to set up either margin or Spot 1X trades, which you can select at the top of the trading widget. Specify the details (e.g., the amount, leverage, take profit, and stop loss), click “Open Position,” and confirm the transaction in your wallet.
As a reminder, while Early Margin Traders earn rewards continuously on a per-second basis, the ePMX of Early Spot 1X Traders is distributed periodically.
