CoinFLEX, a crypto futures exchange, is the first centralized exchange to launch a hybrid Automated Market Maker called AMM+. CoinFLEX will be hosting an ‘AMM+ Arena’ competition where users will be rewarded based on their ranking and weekly trading volume.
The past two years have been an enormous period of growth for AMMs. While the AMMs are a crypto-native innovation born out of decentralized finance, CoinFLEX is the first centralized exchange (CEX) to launch an AMM for the futures market.
The AMM, called AMM+, trades directly in CoinFLEX’s perpetual futures market and offers users unique features that dramatically increase users’ capital efficiency. Specifically, users can trade with up to 10x leverage and have the option of choosing from multiple collateral types.
Because the futures markets are orders of magnitude larger than the spot markets, users benefit from higher trading volume than DEX volumes. For reference, the total value locked (TVL) in Uniswap is roughly $6.5B but trades approximately $1B in daily volumes. Comparatively, the CoinFLEX AMM+ has roughly $100M TVL and has traded between $200M to $1B in daily volumes.
With the option of multiple collateral types, if users have assets earning little to no yield elsewhere, they can put the funds to work in the AMM as collateral. For example, you can use BTC to trade an ETH/USDC pair.
To promote the launch of the AMM+, CoinFLEX is launching a trading competition called ‘AMM+ Arena’ to increase AMM+ adoption and liquidity.
How Does CoinFLEX’s AMM+ Arena Work?
There are three core elements of the AMM+ Arena competition:
Trading competition prize pool. The primary focus of the AMM+ Arena is the trading competition. Users will be able to reference a leaderboard, which shows where you place amongst your peers and the performance of the top 10 AMM+ Arena users.
Users compete to earn the highest 7-day average APR in the AMM+. The prizes will be rewarded weekly based on the previous week’s total trading volume. The prizes will be divided amongst the 10 highest earners accordingly:
1st – 30% 2nd – 20% 3rd – 12% 4th – 10% 5th – 8% 6th – 6%
7th – 5% 8th – 4% 9th – 3% 10th – 2%
The process to enter the competition is extremely easy and only requires a CoinFLEX account. Users can sign up in minutes with email or MetaMask. All you need to do is create an AMM+ position with a minimum of $1,000 USD.
The size of the competition prize pool is based on the aggregate trading volume of each week across all AMMs. The prize pool is divided into three tiers.
Tier 1 – $100M total AMM+ trading volume to unlock $3,000 USD prize pool.
Tier 2 – $500M total AMM+ trading volume to unlock $5,000 USD prize pool.
Tier 3 – $1B total AMM+ trading volume to unlock $10,000 prize pool.
The prize pool is distributed amongst the top 10 ranking players.
Weekly missions and cash prizes
The weekly AMM+ weekly missions are personal objectives tied to your trading volume targets. You are automatically enrolled into the weekly mission as soon as you set up an eligible AMM+ position. Your progress is divided into three tiers; when you reach the trading volume thresholds for each tier, you are able to claim your rewards.
Limited Edition NFTs
The third feature of the AMM+ Arena are the limited edition NFTs. The first 100 eligible AMM+ Arena participants are eligible to claim an Arena NFT. The weekly champion is entitled to claim exclusive NFTs that represent their selected Arena character legend. Each Arena legend will only have five unique editions.