Become a MUZE Liquidity Participant and Earn Rewards
Central to the development, growth and operations of the Muze Network project is it’s utility token MUZE. MUZE is a BEP20 token on the Binance Smart Chain.
Without getting into too much detail, Defi exchanges like Uniswap, PancakeSwap and SushiSwap operate around the concept of liquidity pools. Liquidity pools are one of the foundational constructs behind the DeFi ecosystem. The concept is actually profoundly simple. A liquidity pool is basically pairs of funds locked together in a digital pool, which are used to facilitate swapping of one cryptocurrency like MUZE, for another. On a Defi excahnge, liquidity pools typically exist as pairs of tokens, such as MUZE/USDT, or MUZE/BNB. In simplified terms, the way pools get funded is by individuals adding tokens, from their wallets, into the liquidity pools. Their share of the pool is tracked, and they earn rewards for being a participant.
You will need a crypto wallet that supports Binance Smart Chain. For help getting a wallet set-up, visit the Crypto Wallets guide page
Here are a couple articles that explain what liquidity pools are, how they work, and why they are important.
Liquidity Pool Incentives
Healthy liquidity pools are critical to token projects like MUZE. Therefore, Defi exchanges have built-in incentives for those participating in liquidity pools. Whenever someone trades (swaps) on a Defi exchange, the trader pays a fee. These transaction fees are used to reward liquidity pool participants, according to their relative share of the pool. The larger their share, the more transaction fee rewards they receive. Active liquidity pools can generate sizeable amounts of transaction fees. These incentives are automatic for any liquidity pool participants, including our sanctioned MUZE pools.
Because liquidity pools are so important to projects like Muze Network, it’s typical to provide additional incentives to liquidity pool participants. We provide attractive rewards in the form of additional amounts of MUZE to those participating in MUZE liquidity pools, as outlined below.
OPTION ONE – Participate in Liquidity Pool Directly
Regarding option one: We recommend a basic knowledge of BSC transactions, crypto economics and Defi exchanges with which to make an informed decision when considering providing liquidity using option one. You may wish to refer to Option Two below for liquidity opportunities for crypto beginners.
1. Transaction Earnings – As with all sanctioned liquidity pools in a Defi exchange, participants receive their share of transaction fees generated by the pool, as described above. The more active the pool is and the longer you remain in the pool the more of your share of fees you earn. This functionality is automatic and built into each Defi exchange.
2. MUZE Liquidity Pool Rewards – As an added incentive, Muze Network will distribute additional amounts of MUZE to liquidity participants, each month, based on the amount of MUZE tokens they are holding in the pool. This reward amount is currently 20% additional MUZE monthly (240% APY in additional MUZE). That is, if you are holding 10,000 MUZE in the liquidity pool, each month you will receive 2,000 additional MUZE tokens sent directly to your wallet address. These rewards occur as long as you are an active participant in the pool. Note that these rewards are in addition to rewards that are built into Defi exchanges like PancakeSwap, described above (transaction earnings).
3. Withdrawing Liquidity – When you are ready to withdraw the funds you deposited in the liquidity pool, you can extract all or part of your contribution plus your share of the transaction fees you have earned.
In selecting a token on a Defi exchange like PancakeSwap, you may need to enter the MUZE Token contract number below.
Muze Token Contract: 0xf481F236E946E0F224E2161430B5e4F771705bba
|Liquidity Rewards – Sanctioned Muze Network Pools|
|Monthly Rewards||20% additional MUZE, sent to wallet address|
|Annual % Yield (APY) (estimated)||300%|
|*Example One Year Returns||10,000 MUZE in pool returns addl. 24,000 MUZE
Estimated 80% APY transaction fee earnings
$1,600 in pool participation becomes $4,800
OPTION TWO – Purchase $LIQUID
This is an alternative to option one. Anyone with an account in the Muze Network (muzenetwork.io) can purchase a special kind of Energy Coin called $LIQUID. It’s only purpose is to facilitate providing liquidity for the MUZE token pool, while shielding the account holder from the complexities of Defi liquidity pool management. By purchasing $LIQUID, you are not just helping to fund a MUZE liquidity pool, you are investing in the Muze Network project and all the communities it nurtures.
Here’s how it works:
1. Purchase $LIQUID – When you are logged into Muze Network at muzenetwork.io, navigate to the My Energy page, available in the left sidebar. In the $LIQUID part of the page you will see a Purchase button. Click it and purchase the desired amount of $LIQUID Energy Coin with a debit or credit card. The funds used to purchase $LIQUID are used to add liquidity to the MUZE/USDT liquidity pool. The price of each $LIQUID coin is keyed to the price of MUZE at the time of the purchase. There is a current maximum transaction amount of $5,000 for any one purchase of $LIQUID and a minimum of $100.
2. Rewards for Holders of $LIQUID – We provide substantial rewards for all holders of $LIQUID, given the importance of their participation . Each month, additional $LIQUID is added to your balance at a reward rate which is currently 15%, compounded each month (535% APY). That is, each months rewards are calculated based on your new $LIQUID balance, including any previously earned rewards.
3. Track Your $LIQUID Balance – When you own $LIQUID you can always monitor your balance right there on the My Energy page. Every month you receive rewards that are reflected in your balance.
4. Withdraw $LIQUID – When you are ready, withdraw all or part of your $LIQUID balance. Initiate a request and once approved, you receive an appropriate amount of MUZE tokens sent to your wallet address, including any amount you have earned as rewards. The exchange rate is always one MUZE token for one $LIQUID Energy Coin.
|Purchase $LIQUID – Earn Rewards|
|Monthly Rewards||15% additional $LIQUID, compounded monthly|
|Annual % Yield (APY)||535%|
|*Example One Year Returns||20,000 $LIQUID becomes 107,000 $LIQUID
107,000 $LIQUID = 107,000 MUZE
$1,600 in MUZE becomes $8,560 in MUZE
MUZE tokens are not intended to constitute securities in any jurisdiction. This information does not constitute a prospectus or offer document of any sort and is not intended to constitute an offer of securities or a solicitation for investment in securities in any jurisdiction.
This information does not constitute or form part of any opinion on any advice to sell, or any solicitation of any offer by the distributor/vendor of the MUZE tokens (Muze Network, LLC) to purchase any MUZE tokens nor shall it or any part of it nor the fact of its presentation form the basis of, or be relied upon in connection with, any contract or investment decision.