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Mute Amplifier
Info & Project Registration
The Mute Switch Amplifier is a liquidity reward protocol that allows LPs to gain additional revenue APY & take part in the Mute ecosystem. Amplifier rewards are fueled by platform revenue and fees, which come directly from the buy back and make system the Mute DAO has in place. Projects that get approved to be a part of the Amplifier program get allocated a specific amount of $MUTE over a period of time with a target APY for the liquidity providers. Do note, there are not amplifier pairs for every liquidity pair on the Switch. Rather, amplified pairs are decided up by the team and Mute DAO. There will be amplified pairs for important base liquidity pairs such as ETH/USDC, WBTC/USDC etc. These will be linked and updated on this page as those become available. Each amplifier will have a capped amount of buy-ins which ensures the base APY is not diluted. The APY in an amplifier is variable and is determined by the users ETH value of Mute vs the total value of holdings in ETH of the LP they are providing. $f(APY_{amp}) = APY_{base} + (clamp(value_m/value_{lp}, 1) * (APY_{max} - (APY_{max} / 3)) )$ Let's take an example. Providing$50k worth of LP on an ETH/USDC pair with an amplifier that has a 5% base APY and 15% max APY. Additionally, you hold \$25k worth of Mute in your balance. Amplified APY = 5% + ( (25k/50k) * (15% - (15%/3))) = 10% To own the Max Amplified APY, you must hold the same value of Mute as you do of LP you are providing. Your Mute holdings carry over to all amplifiers. If you are providing your LP to two amplifiers, your Mute balance is not split among them. Taking the previous example, if you provided LP on two pairs using those same exact numbers as above, your APY on both would be 10%. This is to encourage participation in the pools.