The AMM+ Arena ended its first week with incredible success with over a hundred participants entering the competition.
CoinFLEX released its new automated market making product called AMM+ in July 2021. The AMM+ Arena gamifies the AMM experience into a play-to-earn format, which offers users an exciting experience to earn passive income. To learn how to set up an AMM+ position click here.
Follow the best performing AMMs
With the first week over, we have exciting data that we can share with our users to help you improve your strategy, earn higher APRs, and increase your chances of making it into the top 10 leaderboard. This data not only helps the users, but also helps us understand our own product better. A win-win!
With typical AMM+ positions, higher leverage concentrates liquidity to make capital more efficient. In other words, the higher the leverage, the more money you can make; however by doing so you also increase your chances of getting liquidated. Users are not encouraged to use leverage. However, because the APR calculation method for AMM+ positions is different in the Arena, you can expect differences in APR.
This is beneficial to AMM+ users because it means you don’t necessarily need to increase your risk to have a chance of entering a top 10 position and earning rewards! Six out of the top ten AMM+ Arena positions were created with less than 5x leverage. One position did not utilize leverage at all and was still able to rank.
The most successful positions had very tight price ranges, which allowed them to earn trading fees. Prices moved very close to the positions’ maximum and minimum ranges but most of the time stayed within range.
What pairs performed the best?
Six of the top ten AMM positions are BCH pairs, with the other four being ETH pairs. Remember, the perpetual market has the highest liquidity, choosing /USD Perp pairs is more likely to give you a better chance of having higher APRs compared to spot pairs. If you are concerned about liquidation risk, you can choose low leverage or even no leverage. You may check the AMM+ statistic such as the last 24-hour or 7-day APR by visiting our transparency page.
What direction should I choose?
Seven out of ten ‘Buy’ positions took advantage of the crypto market’s 12% price spike that occurred during the first competition week. The other three were ‘Neutral’ positions that took advantage of the volatility.
How much collateral was used?
In AMM+ Arena, the amount of collateral also doesn’t necessarily affect your APR. One person used a minimum of $1000, seven had a position below $3000, and the other two had a position size greater than $3000. This is beneficial as it means you have a chance to enter the top ten without risking large amount of assets
Participate in our AMM+ Arena competition now!
For more information on AMM+ Arena, please click here to view our terms and conditions.
Founded in 2019, CoinFLEX is the Home of Crypto Yield and is committed to providing institutional and retail investors an easily accessible platform to earn and trade crypto.
CoinFLEX creates innovative solutions to bring investors and crypto markets together through intuitive yield products such as flexUSD, the world’s first interest-earning stablecoin, and AMM+, the most-capital efficient automated market maker in the world. CoinFLEX is backed by crypto heavyweights, including Roger Ver, Mike Komaransky, Polychain Capital, and Dragonfly Capital.
Risk warning: AMM yield-farming is subject to high market risk. Please trade cautiously. CoinFLEX will not be responsible for any trading losses incurred during the course of the competition. CoinFLEX reserves the right to amend, change, or cancel this announcement at any time and for any reasons without prior notice at its’ sole discretion.
Author: Adam Diaz