UNIDX Token

How does the platform token play into the protocol? This section will give a clear breakdown on how the token is part of the economy behind the protocol.

Protocol fees are extracted from trades and liquidations. This fee is collected and 50% is distributed to token holders directly without staking required. 

For example, if the trade is executed on the perp platform. 40% of fees are extracted from the protocol so from there, 50% of the fee is then taken and distributed to holders.
Fee Breakdown
Leverage trade routed only through UniDex (0.1% fee pair)
1.Opening a trade: 0.1%
Liquidity Providers (0.06%)
UniDex Dev Fund (0.02%)
UNIDX Holders (0.02%)
2.Closing a trade: 0.1%
Liquidity Providers (0.06%)
UniDex Dev Fund (0.02%)
UNIDX Holders (0.02%)
​
Leverage trade aggregated (GMX 0.1% fee pair, 50/50 fill, Tier 3 ref)
Opening a trade 2000 USDC, 1000 Filled from UniDex & 1000 from GMX
Liquidity Providers: 0.6 USDC
UniDex Dev Fund: 0.3 USDC
UNIDX Holders: 0.3 USDC
Closing a trade 2000 USDC, 1000 Filled from UniDex & 1000 from GMX
Liquidity Providers: 0.6 USDC
UniDex Dev Fund: 0.3 USDC
UNIDX Holders: 0.3 USDC
Swap Fees from Batch Auction
Swap 1000 USDC -> 0.79 ETH (Assumes 1% surplus and 90% was returned to trader) 
UniDex Dev Fund: 0.000395 WETH (0.05% from this trade)
UNIDX Holders: 0.000395 WETH (0.05% from this trade)
Note that the amount collected as a fee is variable, but the amount collected is split 50% between the Dev Fund and the Holders.
Is it better to LP for the perp protocol than hold?
It's important to highlight the pro's and con's of part of the protocol. LPing is required for the protocol and they get paid from traders losses while protocol revenue is collected and distributed to holders regardless of market activity.

Here is a small breakdown of risks holders vs LPs take on from a protocol viewpoint

Last modified 8mo ago