Decentralized finance has been around for a while but is still in the early stages of development. However, there are already several projects and platforms that are providing services in this space.
One of these projects is Mute Switch, an AMM DEX with a twist. Can it give you 100X on your investment? Let’s take a closer look.
What is Mute Switch?
Mute Switch is a zkRollup DeFi Platform that is built on zkSync v2. zkRollup technology represents the endgame for Ethereum scaling and will help scale Ethereum without sacrificing security or decentralization. zkSync 2.0 is now on the mainnet and is rapidly moving towards a full launch.
ZkSync has three major alpha stages before it fully launches:
- Baby alpha – only zkSync developers are using it.
- Fair launch alpha – At this stage, zkSync will be open to projects and other developers.
- Full Launch Alpha – Open to all users (probably from Dec 28)
When zkSync enters the Full Launch Alpha, all the ecosystem projects will launch simultaneously, creating the largest Layer 2 launch in the history of crypto from the largest ecosystem projects in Web3 to more than 150 creative projects. Mute Switch will be among those projects launching and is poised to be a big winner in the long run. So far in zkSync testnet, Mute Switch has been processing about 40% of all DEX trades.
What Can You Do With Mute Switch?
You can use Mute Switch to invest, trade, earn/farm yields and participate in bonds. You can also leverage the security of Ethereum with the low fees of zksync mainnet to make fast and cheap swaps.
Mute Switch’s main features include an AMM-based DEX, like Uniswap but with Limit Orders. Mute Switch also charges 0.1%-10% LP fee (unlike Uniswap’s 1% maximum fee). 0.1% of the fee charges goes to the Mute protocol.
Additionally, when minting the MLP tokens, you incur zero fees. Due to the high speed of the zkSync network smart contract transactions are settled fast (1-3s). With zkSync, you can save up to 95% of the gas fee you would normally use on mainnet L1 eth.
About the Mute Amplifier
The Mute Switch Amplifier is a liquidity reward protocol that allows LPs to gain additional revenue APY and take part in the Mute ecosystem. The amplifier rewards are fueled by platform revenue and fees, which come directly from the Buy Back and Make system the Mute DAO has in place.
Projects that get approved to be a part of the Amplifier program get allocated a specific amount of $MUTE tokens over a period of time with a target APY for the liquidity providers.
What is the Buy Back and Make System?
Buy back and Make is the utilization of an AMM to keep the financial benefits without the drawbacks of burning tokens. Tokens are withdrawn from the Smart Treasury and users connect into the easy-to-use swap Mute dApp and make ZK-Rollup trades without the friction of needing to buy MUTE for gas up-front.
So by shifting the position of MUTE outside of the trade itself friction is reduced entirely while using the fees generated from the native pair to buy back MUTE from the market afterwards.
In essence, the protocol has a smart pool that serves as an automatic buyback machine, token issuance pool, and liquidity provider. This model continually raises the price of $MUTE in the market infinitely while maintaining circulating supply.
About Mute Bonds (dMUTE)
Bonding is the process of trading MUTE-ETH LP (MLP) shares to the Mute DAO for MUTE. The protocol quotes an amount of MUTE and a vesting period for the trade. It is important to know: when you purchase a bond, you are selling your LP share/tokens. The Mute DAO compensates you with more Mute than you’d get on the market, but your exposure becomes entirely to Mute and no longer to MUTE-ETH LP.
The Mute bonds increase the amount of Protocol Owned Liquidity via the Mute DAO which increases the revenue towards the treasury and long term liquidity for the protocol. The benefit of bonding to users is that it allows them to purchase Mute at a lower cost basis.
After purchasing the bonds (dMUTE), the bonds are given out within a 7-day time lock. So they can’t be immediately sold on the market. The longer you lock your dMUTE, the more the ROI.
The Mute DAO will be regularly buying back MUTE tokens from the market and adding them to the pool to increase liquidity and payout to MUTE.
Mute Switch Tokenomics
The Mute price today is $0.4505, with a 24-hour trading volume of $463,672. Mute Switch has a circulating and total supply of 44,000,000 MUTE. If you want to buy or sell Mute, BKEX is currently the most active centralized exchange. DexScreener is currently the best place to chart Mute if you are a Technical analysis buff.
Mute has already done a the retest after a breakout of the $0.35 resistance level and is expected to rally back to the previous ATH of $0.71, before venturing into price discovery.
Track MUTE Price: https://www.coingecko.com/en/coins/mute
Real-Time MUTE Chart: https://dexscreener.com/ethereum/0x0efb424c465dbd0a626359d63412838f727f2c25
Buy on BKEX: https://www.bkex.com/trade/MUTE_USDT
Mute has the potential for 100x returns, considering that it’s in the initial stages. This is a big selling point for Mute as it means you can earn a lot of money without taking on too much risk. So far, it has been performing well, with many users reporting high returns. However, it is still early days, and it remains to be seen if Mute can deliver.
If you’re thinking of investing in Mute Coin, then it’s important to note DYOR
Vincent Munene is a freelance writer and a great blockchain enthusiast. Blockchain has changed his life in terms of financial freedom and in return, he likes to educate people and keep them up to date on everything blockchain. He is a Biochemist by profession and also loves to play the piano.