Have you heard about Merchant Moe, a decentralized exchange on the Mantle Network? The Mantle Network is a Layer-2 platform, built upon the Ethereum blockchain, and it is very fast and easy to use. But, what’s up with Merchant Moe, and what is the purpose of the MOE token?
Have you ever used the exchange named TraderJoe on the Avalanche blockchain? Merchant Moe is created by the people behind TraderJoe, but Merchat Moe is running on the Mantle Network. In other words, if you know Trader Joe, this is mostly a copy of the platform, only on the Mantle Network. If you look at the graphics, you will see that everything is similar, just with different colors and names, but besides that, it all looks similar. And to be honest, that is a big plus, because it is very easy to use for trading, and you can also add tokens to the different farms to earn a nice yield with your tokens.
What is Merchant Moe?
Merchant Moe was launched on January 8th in 2024. It is a decentralized exchange where you can trade popular token pairs on the Mantle Network. The number of trading pairs will increase over time, but the most popular trading pairs include tokens such as MOE, JOE, MNT, USDT, MINU, USDC, and several others.
This isn’t a centralized exchange with an order book, but instead, you trade with tokens located in so-called liquidity pools. The liquidity in the pools are added by whoever wants to add liquidity, and if you do so, you will be rewarded with MOE tokens based on the trading volume for that given trading pair. This is a very normal way to run such decentralized exchanges, so if you have ever used UniSwap SushiSwap, TraderJoe, or other similar exchanges, you know how it works. But, if you only care about trading, you don’t really have to think about the different pools or farming opportunities on Merchant Moe.
How do I add liquidity to a pool on Merchant Moe? What is farming all about?
You can provide liquidity to any of the pools available on Merchant Moe. When you add liquidity, you need to add the same value in USD of both tokens. For example, if the price of a JOE token is $0.6 and the value of a MOE token is $0.3 and you want to add tokens valued $500 in total, you will have to add MOE tokens at a total value of $250 while you must add JOE tokens valued $250. With these numbers, you will then add about 416 JOE tokens and 833 MOE tokens.
When you add these tokens to a liquidity pool on Merchant Moe, you will receive a LP token (liquidity pool token) in return. This is what guarantees that you can withdraw your tokens at any time later when you want to get them in return. But, be aware that you will not receive the exact number of tokens in return. Let us say that the MOE token has mooned and gone up a lot in value and now has the same value as the JOE token. Since the liquidity pool always operates with 50/50 percent of both tokens, you will not receive 416 JOE tokens and 833 MOE tokens, but instead, you will receive a similar number of both tokens. If both tokens increase in price, you will be in a big plus. But, if one token in the liquidity pool goes down to zero, then you will suddenly be left with lots of tokens worth nothing (as that will be the only you will receive as you remove your funds from the liquidity pool). You can read much more about the benefits and the dangers of liquidity pools elsewhere, but this was a tiny introduction.
What about the farming opportunities?
Doesn’t it sound nice to do some farming? When you have added funds to liquidity pools, you can further use your LP tokens (liquidity pool tokens) to earn even more rewards. If you have added liquidity to the JOE/MOE pool, then you can further use your LP tokens and add them to the JOE/MOE farm. There you will receive even more MOE rewards for your participation. You can even boost your earnings if you own a lot of MOE tokens and vote for your farm to receive increased rewards, but more about that when it comes to the use-case of the MOE token.
What is the purpose of the MOE token?
The MOE token is the native token of the Merchant Moe platform. It has several purposes. The most basic purpose is that you can stake it on the platform and receive a percentage of the trading fees gathered by the platform. This is exactly the same thing that happens if you stake JOE tokens on TradingJoe on Avalanche.
With every single trade, a portion of the trading fee is set aside. This is used, among others, to give dividends to those staking MOE tokens on the platform. As a result, the more MOE tokens you stake and the higher the trading volume on the platform, the more you will earn. The dividends are not paid in MOE tokens but in stablecoins.
As you stake MOE tokens, you will also earn so-called veMOE. This is voting power in which you vote for which farm on Merchant Moe you think deserves the highest bonus MOE rewards. If you, for example, add JOE and MOE tokens to the JOE/MOE pool, and later add your LP tokens to the JOE/MOE farm, you can now vote for increased MOE rewards for this farm with your veMOE tokens. This might sound complicated, but it is really easy, and you only need to look around at the website for a few minutes and give it a try with a small amount to understand completely how it works.
If you look at the image above, you can see the default interest if you add tokens to a certain pool. You can also see the additional MOE rewards handed out to those who have added their LP tokens to a given pool per day.
What was the initial MOE airdrop about? Who got the MOE airdrop?
The MOE token generation event happened on January 8. It was available to anyone, but to get it, you had to stake JOE tokens on the Merchant Moe platform on that given time. It was easy to take part by using a bridge that sent your JOE tokens from Avalanche to Mantle, where you could immediately stake it on the Merchant Moe platform.
The airdrop was a one-time event, so if you didn’t stake JOE tokens on Merchant Moe on January 8th, you do not have a chance to be a part of it. You can still stake JOE tokens on Merchant Moe and receive small daily rewards for doing so, but the airdrop was a once-in-a-lifetime event that happened on January 8, 2024.
After the airdrop, the MOE token started trading at approximately $0.3. Where it will go from here is hard to predict.
General Merchant Moe information.
Here you have some general information that might be useful.
- Website: https://merchantmoe.com/
- Discord: https://discord.com/invite/merchantmoe
- Twitter: https://twitter.com/merchantmoe_xyz
- Dexscreener: https://dexscreener.com/mantle/merchantmoe (shows the different trading pairs on Merchant Moe)
- MOE token address: 0x4515A45337F461A11Ff0FE8aBF3c606AE5dC00c9
To use Merchant Moe, you must have some sort of wallet. The most popular is MetaMask, but other options available are WalletConnect, Trust Wallet, Coinbase Wallet, Rabby Wallet, Core, or OKX Wallet.
Have you got any thoughts about Merchant Moe that you would like to share? Do you have any questions? Write a comment below and let us hear from you!