Trade the Merge with Mycelium’s Fee-Free Spree

In celebration of the ETH merge, we are going Fee-Free! We’ve dropped the entry/exit fees on leveraged trading until the Ethereum Merge.

Trade with liquidity, leverage, NO entry/exit fees, Trade with Mycelium.

Trade Now.

Margin trading on any asset (ETH, BTC, LINK, UNI, BAL, CRV, FXS) will incur ZERO entry/exit fees. Note that any spot swaps that occur will still be charged a fee.

The Ethereum Merge is scheduled for between September 13–15 2022, meaning traders can access 36–72 hours of fee-free trading on Mycelium Perpetual Swaps.

We’ve added a Merge countdown to our front-end so you can keep track here.

Risk mitigation for ETH merge

We have reason to believe that ETH prices on Arbitrum leading up to the merge will begin to dislocate from ETH prices on Mainnet. This is due to the fact that ETH on arbitrum is ineligible for any potential ETHPOW airdrops, while ETH on mainnet is eligible.

The likelihood of an ETHPOW airdrop can be backed by the fact that ETH futures are in backwardation, indicating a large amount of cash-and-carry traders aiming to be delta-neutral while also receiving any potential ETHPOW airdrops, and be delta-neutral to the price of ETH itself.

We believe that this could cause a mass sell-off of ETH to stables on Arbitrum, and the subsequent bridging of stables to mainnet. As such, we are going to implement a range of measures described below to protect MLP holders from significant ETH sell pressure up until the merge.

Potential Risks

Ahead of the Ethereum Merge, Mycelium may face market volatility due to the structural changes in ETH. To ensure the robustness of our platform, and in the interests of full transparency with our community of users we wanted to outline potential risks we’ve identified, and measures we’re enacting to manage those risks.

In line with the spirit of the Aave proposal here, we are going to introduce some preventative and precautionary measures prior the Merge to protect our LPs and maintain the integrity of our trading platform.

If you would like more information on The Merge, refer to official updates like this one from The Ethereum Foundation.

Measures in place on Mycelium Perpetual Swaps

The changes we will make to protect LPs and traders alike are:

  1. Implement tight bounds on the pool assets so that the ETH composition of the pool tends towards its target. At this time, ETH has a target ratio of 25% of the overall liquidity pool. This can only vary 25% higher or lower than it’s target amount before swapping is paused in that direction. As such, ETH can only make up 31.25% of the pool at maximum, or 18.75% at minimum.
  2. ETH now has a maximum global short size (notional value) of 1,000,000 USD. This is to prevent LPs from any sudden drop in the price of ETH due to the ETHPOW airdrop causing a decrease in ETH prices.
  3. Increase spot swap fees to dis-incentivise spot-swap activity which over-exposes the Liquidity pool to ETH. The base spot swap fee will now be 0.30%, and will increase as it’s percentage of the pool increases.

Timelines for measures

These changes will commence indefinitely and will last (at least) until the end of the merge. The team will re-examine post-merge once more information is known. Further measures may be implemented as time progresses, and the Mycelium team will update users when measures are wound back to normal.

Trade the Merge with Mycelium Perpetual Swaps

We’re taking proactive and precautionary measures to ensure the integrity of our platform for Traders and Liquidity Providers.

Traders can start trading fee-free now with Mycelium Perpetual Swaps.

Trade with liquidity, leverage, NO fees, trade with Mycelium.

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Trade with liquidity, leverage, and low fees. Trade with Mycelium. DeFi derivatives, hosted on Arbitrum.