The Maiar Exchange is a DEX (Decentralized Exchange) with AMM (Automated Market Making) functions, deployed on the Elrond Network. It is the engine for DeFi products such as swaps, liquidity pools and yield farms.
You can connect your wallet to the Maiar Exchange in four different ways: Maiar App, Maiar DeFi Wallet, Ledger hardware wallet, keystore file (.json) + password via the Elrond Web Wallet.
You can use a Swap to trade one token for another, based on the available token pairs. Because the Maiar Exchange is an AMM DEX, you will always be quoted a swap price based on the availability of tokens in a swap pool. Thanks to balancing mechanisms such as arbitrage, you will always receive a swap price that is close to the USD value of the swap, provided there is enough liquidity in the respective token pool.
Liquidity Pools are smart contracts that hold the reserve of the two tokens for a particular Swap pair. Liquidity can be deposited in token amounts that are equal in USD value. The exchange automatically calculates this ratio based on the amount typed in by the user.
There is no limit to the amount of tokens that can be deposited in a liquidity pool - the more, the better. The proportion between the token amounts is always x * y = k - read the docs for an in-depth explanation.
You can add tokens to the available liquidity pools by selecting the corresponding pair, i.e. TKN1/TKN2. You can only add amounts of TKN1 and TKN2 that are equal in USD value.
After adding liquidity, you will receive a unique Liquidity Provider Token (LPT).
You can remove liquidity by giving back your LP token. It will be burned and you will receive the amount of TKN1 and TKN2 based on the current ratio between TKN1/TKN2 (this might be different than what is was initially), plus your share of the swap fees on the TKN1/TKN2 pair for the period when you have provided the liquidity. Please refer to the Impermanent Loss explanation to understand the potential risks involved with providing liquidity.
An LP Token (Liquidity Provider token) keeps track of your added liquidity in a certain pool. It is a unique NFT that contains information about the amounts and time of deposit. It can be used to reclaim your added liquidity and it is burned in the process. Between the time you deposit liquidity and when you reclaim it, you can freely use the LP token to transfer it to another wallet or deposit it in a yield farm to get additional rewards. In the future you will be able to sell your LP tokens or leverage their value as collateral for borrowing money or other DeFi use-cases.
Farms generate yield for liquidity providers that stake the LP tokens. They are meant to incentivize long term liquidity by providing an additional revenue stream for providers. The rewards for farms are usually provided in MEX tokens, but special farms with dual token rewards can exist.
Liquidity providers can use farms by staking the LP tokens obtained from providing liquidity in a pool. After doing this, MEX rewards will periodically become available for harvesting. The rewards can be locked for 1 year for 2x APR.
You can deposit LP tokens in Farms to earn rewards by pressing the Stake button. For every token swap pair, a corresponding Farm is created. You can only stake TKN1/TKN2 LPT in the TKN1/TKN2 farm, for example.
Farms yield MEX rewards, which can be locked for 2x APR.
You can stake MEX in a dedicated smart contract, listed in the “Farms” section, and earn rewards proportional to your deposited amount. This is a unique mechanism available only for the MEX token, which is part of the MEX value capture mechanisms.
Staking - Depositing MEX in the special MEX staking farm in order to earn rewards.
Farming - Also referred to as “yield farming”, the term refers to earning rewards for depositing LP tokens in their respective farms.
The MEX supply for Year 1 after launch will be 8,045,920,000,000 MEX tokens. The MEX token has an issuance mechanism that is designed to accelerate the Maiar Exchange adoption. It is countered by a MEX burning mechanism: 0.05% of all fees are swapped to MEX and then burned. This will lead to MEX becoming deflationary as its adoption broadens.
More details on the MEX Tokenomics can be found here:
Security is a top priority. A portion of the MEX supply has been set aside for funding periodic and exhaustive security audits, as well as future bounty programs, for all the Maiar Exchange components, from smart contracts to front-end components.
The Maiar Exchange Smart Contracts work with ESDT tokens. EGLD is the native coin of the Elrond Network and needs to be wrapped as an ESDT token to work in Maiar Exchange.
Wrapped EGLD is used for each action that requires EGLD, such as swapping EGLD for another token, or depositing EGLD in a liquidity pool. The wrapping and unwrapping actions are automated by the interface.
This penalty is in place to encourage long term liquidity providing and deter liquidity manipulation. 1% is small enough to enable flexibility for regular liquidity providers and large enough to defend against repeated deposits and withdrawals, which would have a negative impact on the stability of the liquidity pool.
Any action of depositing liquidity, such as adding more liquidity (consolidation) or staking rewards in the MEX farm (compounding) resets the enter moment to the current epoch. The penalty then extends for the duration of the next 3 epochs.
1 epoch = 24 hours. An epoch starts each day at ~14:30 UTC
Providing liquidity can be profitable, but you’ll need to keep the concept of impermanent loss (IL) in mind. IL describes the temporary loss of funds occasionally experienced by liquidity providers because of volatility in a trading pair.
The bigger the volatility, the more you are exposed to IL as there is an irresistible opportunity for arbitrage, because the price in the LP doesn’t reflect what’s going on. In this case, the loss means less dollar value at the time of withdrawal than at the time of deposit. Impermanent loss is one of the fundamental concepts, it’s something that anyone who wants to provide liquidity to AMMs should understand.
The Analytics button is reserved for the section that provides additional information about the exchange and its token pairs, such as price charts, volume charts, and other pieces of useful information for traders. It will be made available in an upcoming release.