Dear CoinEx users,
To provide you with more trading options, after rigorous reviews, CoinEx will list PENDLE and support deposit and withdrawal & Automated Market Making (AMM) on Oct 26, 2021 (UTC). And its trading pair PENDLE/USDT will be available on the same day.
1. Deposit: 03:00 Oct 26, 2021 (UTC)
2. Withdrawal: 03:00 Oct 26, 2021 (UTC)
3. Trading pairs: PENDLE/USDT
4. Opening method: Call Auction
a. Call Auction
03:00-10:50 Oct 26, 2021 (UTC)
Orders can be placed and canceled
10:50-11:00 Oct 26, 2021 (UTC)
Orders can be placed but cannot be canceled
11:00 Oct 26, 2021 (UTC)
Pendle is a protocol that enables the trading of tokenized future yield on an AMM system. It aims to give holders of yield-generating assets the opportunity to generate additional yield and to lock in future yield upfront, while offering traders direct exposure to future yield streams, without the need for an underlying collateral. There are three components that makeup Pendle’s system:
Yield tokenization, Pendle’s Automated Market Maker (AMM) and Governance.
Holders of yield-generating assets can deposit these tokens into Pendle. By doing so the user mints an Ownership Token (OT), representing the underlying principle, and a Yield Token (YT), representing the right to receive the yield.
Users can then utilize their YT in two different ways. Firstly, they can deposit their YT into Pendle’s AMMs to provide liquidity to Pendle. In return, fees and other incentives are given to these liquidity providers (LP). Secondly, they can sell their YT for cash upfront, allowing them to fix the interest rates and lock in their returns immediately.
$PENDLE is a pure utility token at launch, with governance functions to come after the protocol has matured sufficiently. It will eventually be key to the value accrual mechanics and management of the protocol.
What is Automated Market Making (AMM)?
Automated market making (AMM) can calculate the buying and selling price according to the formula, so as to provide a continuous quotation for the market. CoinEx combines AMM with the order book, which means the liquidity pool will be automatically converted into the order book. With the "constant product market maker formula" algorithm in AMM, no matter how large the order book is or how small the liquidity pool is, firm liquidity provision to the market can be guaranteed. Learn more
Fees and Profit
Market supporting automated market making is an AMM market. Compared with normal market, AMM market adopts an independent fees system. The fees for both marker and taker is 0.3%, for market makers is 0.15%. VIP will not enjoy any special fees, and using CET for fees deduction is unavailable. All users are qualified to apply for market makers, and 50% of the market's transaction fees will be rewarded to liquidity providers.
Characteristics of AMM
1. Bonus obtainable from automated market making
User’s provided liquidity will be injected into the pool for automated market making. 50% of the market's transaction fees will be rewarded to liquidity providers in terms of the corresponding pool proportion.
2. Daily bonus can be cumulatively withdrawn
The transaction fee bonus will be calculated once a day and automatically credited into the user's Market Making Account before 4:00 (UTC) the next day. The user can obtain all the accumulated fee bonus after removing liquidity.
3. Free access, no charge required
Assets between Spot Account and Market Making Account can be transferred in real-time by adding and removing liquidity. Each user in a single market can increase liquidity twice a day, and no fees will be charged during the operation.
The assets in the Market Making Account will be injected Into the liquidity pool for automated market making. When the price fluctuates, there will be impermanent losses, and the amount of the two assets will change when the liquidity is removed. More details about impermanent losses
Oct 26, 2021