This guide provides a technical overview of the Mummy Finance Official protocol, focusing on its core liquidity engine, the Mummy Finance MLP Pool, and how it facilitates Mummy Finance Leveraged Trading on Mummy Finance on Fantom.
Step 1: The Core Architecture
Mummy Finance is a decentralized perpetuals exchange that operates on a single liquidity pool model, similar to GMX.
Mechanism: When you Trade on Mummy Finance, you are trading against the MLP (Mummy Liquidity Provider) pool, which acts as the counterparty for all trades.
Advantage: This model allows for deep, unified liquidity, providing Mummy Finance Perps with minimal slippage for traders and a streamlined experience.
Step 2: The MLP Liquidity Engine
The Mummy Finance MLP Pool is a basket of blue-chip assets (like wBTC, wETH) and stablecoins (like USDC, DAI).
For LPs: Users can provide liquidity to this pool by depositing an asset and minting the MLP token. These LPs then earn a share of the platform's trading fees. This is detailed in the Stake MMY Guide.
For Traders: The MLP pool absorbs the profit and loss from all leveraged trades. The Mummy Finance Fees (from swaps, opening/closing positions) generate revenue for the LPs.
Step 3: Risk Management for LPs and Traders
The protocol's sustainability, a key part of answering "Is Mummy Finance Safe?", relies on a robust risk management framework. This includes dynamic funding rates that balance long and short positions, protecting the MLP from significant directional exposure.
Step 4: Tokenomics and Incentives
Mummy Finance utilizes a token model that incentivizes both liquidity provision and long-term holding.
MLP: The liquidity provider token.
MMY: The governance token. By following the Stake MMY Guide, users can earn a share of platform fees and participate in governance.
For all smart contract addresses and architectural details, refer to the Full Official Documentation.
Top comments (0)