Step 1. Enter the AMM plus page
To begin using AMM+, click the AMM+ tab on the dashboard of the main home page.
You are now able to set up your AMM+ position.
At the top of the page, you can see which coins have the highest 24 hour average or 7 day average APR. The rates are subject to change and are an average across all users. Depending on your range and capital boost, you may get a different APR than the 24 hour or 7 day average APR.
For more information on AMM plus statistics, you can visit our transparency page at coinflex.com/transparency/AMM
On the right you have the option to turn on Tips and Guidance to gain more information about your options.
Below Tips and Guidance, you will see a summary of your AMM+ position.
Step 2. Select your expected price direction: Mainly increasing, Mainly decreasing, and Range-bound
By selecting the direction, you are making a decision on what strategy you think will be the most profitable in current market conditions. The direction is an indication of where you think the market price is heading.
- If you think the asset will experience an overall increase in price, you may want to select ‘mainly-increasing’ as it is ideal for upward trending markets and ultimately closing your position when prices are above your range to eliminate any impermanent loss.
- If you think the asset will experience an overall decrease in price, you may want to select ‘mainly decreasing’, as it is ideal for downward trending markets and ultimately closing your position when prices are below your range to eliminate any impermanent loss.
- If you want to take advantage of both price directions, or you think the price will consolidate for a set period of time without breaking out in one direction, you may want to choose ‘range-bound.’ Make sure you exit as close to your mid-point as you can to reduce impermanent loss as much as possible.
Step 3. Select your trading pair
Select which market you want to trade your AMM+ position. CoinFLEX has a wide range of options to choose from!
Step 4. Choose if you want Capital Boost
Select Capital Boost by clicking the toggle on the right. This option is switched on by default.
Capital Boost gives you the option to set up an AMM+ position in the perp market, which provides you up to 10x leverage.
If you choose Capital Boost, select the amount of leverage between 1x to 10x and pick a collateral to deploy from your available balances. For example, if you are choosing the BTC/USD trading pair, you can use any other collateral such as BCH or ETH.
Be aware that choosing Capital Boost may put you at risk of liquidation if the prices move opposite to your chosen price expectation.
Step 5. Input your amount
Enter the amount of capital you’d like to allocate to your AMM+ position. Note that you will need to deposit a minimum of 200 USD worth of crypto assets to use the AMM+.
Step 6. Choose the price range
Select the price range where your liquidity will be allocated.
AMM+ is designed for holders who want to earn passive income on their crypto, rather than those who seek to earn income via active trading. AMM+ positions are therefore designed to have a broad range, as it will require significantly less time and attention to manage, so you can earn income on your crypto passively.
A narrow range may theoretically result in higher fees when the asset is trading within that price range, but the price of a crypto asset is less likely to stay in a narrow range for long, and the yield you will earn on your crypto will likely be negligible. Furthermore, you will not earn any yield if the price falls outside of your range.
Please remember, if you are leveraged and the price of your assets moves outside your range, you may be liquidated. On the right side of the screen you will see your Potential Loss, indicating the projected impermanent loss based on your chosen parameters.
Step 7. Begin using AMM+
Before proceeding, confirm all the information you have selected on the AMM+ page is correct. You can check the details in the Summary section on the right side of the screen.
Click ‘Start AMM+’ to begin earning yield!