MAGMA surged. Does “provide liquidity to earn passive income” mean you can deposit funds in a pool and keep collecting fees? The first half of that phrase appeared in Dex Hunter’s old yield guide, but in Magma’s ALMM, fees on deposited funds can stop accruing.
As of 17:07 Beijing time on October 22, Binance’s MAGMAUSDT perpetual contract was up 64.1% over the past 24 hours.
The official “Bin Architecture” states that only the currently active price bins participate in trades and earn trading fees. Funds can be distributed across different price bins and remain in the pool, but that doesn’t mean they are in the bins where trades are taking place.
If a liquidity position stays where it is while the price moves outside its range, that position no longer participates in current trades. It can resume earning fees when the price returns or the funds are moved back into active bins. No trades means no trading fees.
“Passive income” shouldn’t be understood as interest accruing on a deposit: whether fees keep coming in depends on whether the liquidity is participating in trades, not how long it has been deposited. The gains in Binance perpetuals also can’t tell you which price bin a given on-chain liquidity position is in.
$MAGMA #流动性 #DeFi
As of 17:07 Beijing time on October 22, Binance’s MAGMAUSDT perpetual contract was up 64.1% over the past 24 hours.
The official “Bin Architecture” states that only the currently active price bins participate in trades and earn trading fees. Funds can be distributed across different price bins and remain in the pool, but that doesn’t mean they are in the bins where trades are taking place.
If a liquidity position stays where it is while the price moves outside its range, that position no longer participates in current trades. It can resume earning fees when the price returns or the funds are moved back into active bins. No trades means no trading fees.
“Passive income” shouldn’t be understood as interest accruing on a deposit: whether fees keep coming in depends on whether the liquidity is participating in trades, not how long it has been deposited. The gains in Binance perpetuals also can’t tell you which price bin a given on-chain liquidity position is in.
$MAGMA #流动性 #DeFi