What is Mute

Mute is a DEX on zkSync, with three main features:

Mute.Switch: A decentralized exchange using the AMM model, which also supports limit orders;

Mute Amplifier: A staking and mining platform with a complete APY mining algorithm, aiming to incentivize people to become LPs for various pools on Switch;

Mute Bonds: A bond market where users can sell LP tokens directly in exchange for Mute tokens, aiming to maintain the liquidity of the pools and help users purchase MUTE governance tokens at a lower cost.

Among these features, the most core one is the Mute Switch exchange, while the other two are incentive mechanisms developed to maintain the liquidity of the exchange. The exchange can be characterized by three features: 1. Support for limit orders (Not ready yet). 2. Support for two AMM algorithms, suitable for stablecoin pairs and regular coin pairs (stablecoins are more similar to the Curve model, while regular coins are similar to Uniswap's constant product model). 3. Built on zkSync, providing gas-saving and fast settlement performance.

How to use the Mute to buy tokens?

Step 1: Switch MetaMask to zkSync Era mainnet (make sure you have enough gas fees). For information on how to add the zkSync Era mainnet, please refer to the previous text.

Step 2: Open https://mute.io/ and click "Enter app." After redirecting, it should automatically request wallet connection. Connect your wallet to Mute.

Step 3: Choose the tokens you want to trade. The left side of the product interface 🫲 displays high-liquidity trading pairs, which is user-friendly. After selecting, click "Swap," and MetaMask will automatically pop up the contract name and estimated gas amount for the upcoming interaction.

Step 4: Click "Confirm swap" in MetaMask, and within a few seconds (as the zkSync Era network is fast), you will receive a message indicating that the transaction was successful!

Step 5: Don't forget to import the newly purchased tokens into your wallet. You just need the token contract address, which can be easily found on the TokenInsight token details page (here we use MUTE as an example).

Please note that according to Mute's official response in their Discord community, the limit order feature has not yet been fully developed. Stay tuned, and we will bring more updates once they release this feature.

Why to become a liquidity provider?

Of course, it's to make more money! By depositing two types of tokens into a liquidity pool, you can create liquidity and start collecting fees continuously. You will also receive LP tokens, representing your ownership share of liquidity in that pool. The fees generated from trading are collected into a vault, which is a smart contract that allows LP holders to claim the fees they've earned based on their LP token shares.

How to become an LP in Mute?

Click the "Pool" section in the top navigation bar. It will display a list containing all the pools. Find the desired LP pool within the list. Click "manage" on the right to enter a new page showing more detailed data for that pool. In the Deposit column on the right, enter the specific amount of liquidity you want to add and click "Approve". The system will automatically pop up the MetaMask page, click "approve" to complete the interaction.

After completing the process, go back to the Pool page, and you can see the Liquidity you've participated in displayed at the top.

After providing liquidity for a given token pair, you can stake your LP tokens in designated amplification pools. This helps you earn more MUTE rewards. Alternatively, if you urgently need cash liquidity, you can sell your LP tokens in the "Bonds" section displayed below.

Sell your LP tokens in Bonds

Bonding is the process of selling MUTE-ETH LP shares to Mute DAO in exchange for MUTE native tokens. The protocol offers a certain amount of MUTE and a lock-up period for the transaction.

If you want to sell LP tokens, the Bonds section can meet your needs. The benefit of Bonding is that it allows users to purchase Mute native tokens at a lower cost. These Bond tokens are sold on a first-come, first-served basis, with their ROI starting at 0% and gradually increasing until they are sold. Once you have purchased a bond, the total locked Mute amount you can claim will unlock linearly over 7 days. It's also called dMute, an equity token with a 7-day time lock. After 7 days, the received dMute can be directly exchanged for MUTE or re-locked for a longer term.

For example, using a bond with an ROI of 15%, you can exchange $15,000 worth of MUTE/ETH LP. Bonding will sell the $15,000 worth of MUTE/ETH LP tokens to Mute DAO, and in exchange, you will receive dMute tokens with a potential Mute value of $15,000 * 1.15 = $17,250, locked for 7 days, and can be withdrawn after 7 days.

To do this, click to go to the Bonds page, find the LP position you want to sell, and then click the "Bond" button.

Note: In the detailed page, you will see your overall performance of your LP position including ROI. However, if your ROI is negative, you cannot sell it.