Memecoins have reached a total market capitalization of $54 billion and an average daily trading volume of $6 billion, indicating that the memecoin frenzy in the digital-asset market is far from over. In fact, trading volumes have risen to levels not seen since the burst of the previous crypto bubble over two years ago. Memecoins, such as $POPCAT, $WIF, $BILLY, $MOG, $PEPE, $GME, $BONK, and others, are outperforming traditional market heavyweights like Bitcoin, Ethereum, and Solana, which have recently garnered significant attention.
This is unsurprising, as memecoins generally have a lower cost barrier to entry, are perceived as fair, and do not necessitate extensive understanding or research, while purportedly offering substantial returns in a short time frame. Consequently, they are more accessible to the average crypto participant. However, the on-chain landscape for memecoins is uneven. Traders and investors are primarily limited to buying spot assets, and those interested in "trading" memecoins face the challenge of having minimal options to counteract potential downside exposure or hedge their purchases against potential sell pressure. This situation persists unless a centralized exchange (CEX) lists perpetual derivatives of their preferred memecoin or it becomes popular enough to be included on an on-chain perpetual decentralized exchange (perp DEX). This limitation significantly restricts the on-chain trading capabilities of memecoins, and that is where we comes in, Mobl3 aims to address this issue by unlocking liquidity for perpetual trading of highly volatile memecoins. As long as a memecoin passes our safety checks, users can hedge their memecoin spot buys/sells against it’s perpetual derivative on Mobl3. This innovation could enhance memecoin trading by providing a more balanced and efficient trading experience.
Mobl3 is a sophisticated application network layer designed to enhance network speed and throughput, constructed via Optimism framework. The Network facilitates settlements via the base L2, ensuring Mobperp, its flagship Dapp, does not contend with other Dapps for blockspace. It leverages Base's existing liquidity and userbase through Coinbase products and services, enabling the development of scalable and sustainable appchains. Mobl3 offers low-cost, modular data availability via Eigenda, achieving a 100x increase in gas efficiency and throughput on the network. This makes it one of the fastest appchains designed for on-chain memecoin trading, striving to deliver an optimal trading experience for all users. Mobl3 prioritizes liquidity, optimized trading conditions, and passive yield, aiming to cultivate a thriving and mutually beneficial ecosystem for both liquidity providers and traders.
The platform's unique approach to governance, utilizing Mob Points, empowers liquidity providers to have a say in the direction and development of the ecosystem. This innovative system ensures that the interests of the community are prioritized, fostering a collaborative and sustainable environment. By tailoring the capabilities of the Mob ecosystem to the specific vertical of memecoin trading, the platform avoids the pitfalls of one-size-fits-all solutions and instead offers a tailored experience that caters to the needs of its users. This specialization allows Mob to provide an enhanced trading experience while also generating revenue and preventing the chain from becoming a potential ghost town.
In addition to its focus on trading, Mob offers opportunities for teams/protocols to build on the Mob stack, bootstrapping their treasuries and user bases while earning native chain yield by providing liquidity directly to the ecosystem.
Liquidity providers are the backbone of the Mob Ecosystem, playing a crucial role in providing the necessary liquidity for the platform's Market-making system. This liquidity is evenly distributed across the orderbook of whitelisted markets, enhancing market depth and enabling efficient trade execution for traders of varying sizes.
The liquidity provided by LPs is securely stored in the MLP Vault, serving as collateral for the issuance of USDm, Mob's over-collateralized stablecoin. The Market-making Engine utilizes this USDm credit to establish liquidity for its Perpetual markets, which traders can then engage with.
In return for their contributions, liquidity providers are rewarded with governance rights, a share of the revenue and fees generated by the ecosystem, and additional yield in the form of the protocol's native ERC20 token. This incentivizes LPs to continue supporting the Mob Ecosystem, fostering a mutually beneficial relationship between liquidity providers and the platform.
Mob's perpetual futures markets are structured as independent smart contracts, providing a secure and efficient trading environment for users. Each market is designed to facilitate the seamless creation of leveraged positions on whitelisted Perpetual Markets.
Traders must deposit supported collateral to their Account manager, which facilitates the acquisition of USDm, the platform's over-collateralized stablecoin, from the stablecoin factory. This process ensures that traders have the necessary assets to engage with the perpetual futures markets.
Upon opening a position, the underlying collateral is accepted by the Collateral Manager, which then calls upon the Position Manager to oversee the connected markets and manage the collateral. This system ensures that traders can create leveraged positions on any of the whitelisted Perpetual Markets with confidence and security.
The Mob Liquidity Provider (MLP) vault, a distinctive feature of the Mobl3 network, is an integrated liquidity pool designed to enhance the efficiency and productivity of the ecosystem. This vault ingeniously leverages the liquidity provided by Liquidity Providers (LPs) to mint USDm credit, a stablecoin that primarily serves the Mob ecosystem. The MLP vault plays a crucial role in providing liquidity Backstop for the market making engine, ensuring the Mobperp orderbook is well-capitalized and resilient. This, in turn, fosters a stable and reliable trading environment, encouraging more participants to join the platform.he MLP vault significantly boosts the liquidity of any decentralized application (DApp) built atop the Mobl3 network. This is achieved by offering a robust and flexible liquidity infrastructure that can adapt to the varying needs of different DApps. This not only enhances the overall trading experience but also empowers DApp developers to create innovative and user-friendly applications, whilst serving as a lucrative avenue for both LPs and ecosystem applications to earn additional passive income. By participating in the vault, LPs can earn rewards from the transaction fees and revenue generated within the Mob ecosystem. Simultaneously, ecosystem applications can utilize the vault to generate revenue, making the ecosystem more capital efficient.
The Mob Ecosystem employs a sophisticated quad token system consisting of ETH, MOB, MP, and USDm to effectively manage risks, value extraction, and governance while aligning the interests of traders, the ecosystem, and liquidity providers. This innovative architecture features a dual-gas system, with ETH as the primary gas token. However, users can utilize MOB as an alternative gas token when they lack ETH, facilitating seamless transactions within the ecosystem.
MP: token plays a crucial role in governance, acting as a point system that calculates a user's weight in the Mobl3 vault over a 28-day epoch. This non-transferrable token is then used for governance decisions within the Mob ecosystem, ensuring a fair and balanced representation of participants. At the end of each epoch, MP holders can redeem protocol rewards, which are provided to liquidity providers, thus incentivizing participation and engagement.
MOB: the native token of the Mob Ecosystem, serves multiple purposes, including incentivizing liquidity provision, enabling discounted trading fees, and providing virtual trading credits in USDm. MOB can be staked by traders (xMOB) to access these benefits and is also used as a call option (MOB) for incentives. Due to the dual-gas mechanism, MOB can be burned to complete transactions when users lack ETH. in the future $MOB aims to provide native vaults to allow users stake their native Mob assets to earn yield across the ecosystem.
USDm: the stablecoin of the Mob Ecosystem, is a critical component that facilitates stable and reliable value within the platform. It is minted when traders realize profits and can be swapped for underlying collateral assets at a price of $1. USDm is backed by a diverse range of whitelisted assets and is over-collateralized, ensuring its stability and resilience. Mobl3 employs $USDm as its native stablecoin for several reasons. Firstly, $USDm streamlines collateral management by serving as the primary settlement asset. This reduces the complexities associated with managing multiple external stablecoins and ensures that all transactions within the Mobl3 ecosystem are seamless. By having a native stablecoin, Mobl3 can better control and optimize the liquidity available on its platform, which enhances the overall trading experience.
Moreover, using $USDm helps mitigate risks associated with external stablecoins, such as depegging or regulatory challenges. By relying on $USDm, Mobl3 can maintain a more stable and reliable ecosystem which is crucial for attracting and retaining traders, projects and liquidity providers.
The MOB DAO acts as a governance system to ensure the community’s involvement in decision-making processes, which is executed via non-transferable governance tokens called MP, these assets are soulbound tokens, ensuring voting power is tied to individual community members.
Mob DAO Council: The executive branch of the organization is tasked with executing community-ratified decisions, establishing strategic objectives, and managing resource distribution.
MIPs: Propose documents detailing system alteration plans, promoting transparency and facilitating governance.
The Mob Wars (Flywheel)
Within the Mob ecosystem, various stakeholders, including Liquidity Providers (LPs), traders, and the Protocol itself, collaborate to create a synergistic and interdependent environment. Each participant plays a vital role in enhancing the platform's functionality and overall performance. LPs supply assets to liquidity pools, traders engage in active trading, and the Protocol maintains and governs the ecosystem. This harmonious relationship fosters a thriving and collaborative environment, ultimately benefiting all parties involved in the Mob ecosystem.
In the Mob ecosystem, Liquidity Providers (LPs) play a pivotal role by depositing assets into the Mob Liquidity Provider (MLP) vaults. These vaults consolidate liquidity and facilitate underwriting of swaps on the perpetual Decentralized Exchange (DEX). As a reward for their contribution, LPs receive a share of the trading fees and additional ecosystem yield through oMob, a call option token that offers LPs potential exposure to Mob's price appreciation at a discounted rate, without requiring them to hold the Mob token. LPs can capitalize on their oMob in two ways: by executing the call option or selling oMob on the Mob Options Marketplace (Mom) to yield traders or the protocol itself, thereby creating a mutually beneficial ecosystem.
Traders engage with the Mob platform by depositing collateral assets to open and manage positions on the perpetual decentralized exchange. Deposited collateral serves as a guarantee for trading positions. Upon successful trades, USDm is credited to the trader's account as gains. In contrast, when traders incur losses, the collateral in their account is used to settle these losses. A soft liquidation mechanism is in place to protect the overall liquidity pool, maintaining market stability and ensuring the interests of both traders and liquidity providers are secure. Yield traders and speculators can also benefit from the Mob Ecosystem by purchasing oMob via the Mob Options Marketplace from liquidity providers or directly from the protocol during liquidity generation phases, subsequently selling the acquired Mob asset on the open market for profit.
Ecosystem Projects or DApps can supply liquidity to Mob Vaults in return for two main benefits: they can obtain synthetic perp contracts for their assets, eliminating the need for costly centralized exchange listing and management fees, or they can generate and enhance liquidity and yield for their users without relying on external parties. This approach effectively addresses the initial liquidity challenge many DApps face and enriches the Mob ecosystem. Furthermore, these projects/DApps earn “MP” through their direct liquidity provision, which grants them voting rights on potential ecosystem modifications that could either positively or negatively impact them. To secure additional support/votes or direct USDm liquidity for their protocol or oMob yield distributions to their users, these entities can incentivize Mob LP vaults with their native tokens. This creates an extra revenue source within the Mob ecosystem.
The protocol employs these systems to cultivate network-owned liquidity and chain-owned bribes, which are crucial for sustainability and growth. Chain-owned bribes primarily enhance the protocol's revenue, leading to more attractive Mob vaults and ecosystem, thereby increasing total value locked (TVL) and protocol-owned revenue. This creates a positive ripple effect, benefiting the MOB token with generous rewards, positive price growth, and enhanced utility within the Mob ecosystem as a liquidity layer. Simultaneously, building network-owned liquidity ensures the protocol can withstand unforeseen events and market conditions.
The "Mob Wars" phenomenon refers to a self-reinforcing cycle that ensures adequate network liquidity, attracts users to Mob, and fosters a vibrant ecosystem of applications utilizing the network. This dynamic contributes to a functional ecosystem, positively influencing trading on the native perpetual DEX, Mobperp.
The Mobl3 Chain is Currently Live on Alpha Testnet, with plans to open up its beta-testnet to Developers and users to help further scale the Network.