MantleSwap is a decentralized exchange built on the Mantle Network, an Ethereum Layer-2 protocol developed by BitDAO, one of the largest DAOs and a partner of Bybit. The MantleSwap Incentivized Testnet recently launched, and early users could potentially earn token airdrops in the future!
MantleSwap is the premier decentralized exchange (DEX) built on the Mantle Network. It offers a suite of DeFi products for Mantle users, including an automated market maker (AMM) exchange, staking services, launchpads, lending, and GameFi.
At its core, Mantle Network is a technology stack for scaling Ethereum and EVM-compatible blockchains. Mantle has been built with a modular architecture that uses an optimistic rollup with data availability solutions. This allows Mantle to inherit security from Ethereum and offer cheaper and more accessible data availability.
Does MantleSwap Have a Token?
Yes, MantleSwap plans to launch its native token $MANT. Details of its tokenomics, emissions rate, and contract address will be announced soon.
Additionally, the MantleSwap team has hinted on Discord at a potential $MANT airdrop. They encourage community members to interact with the incentivized testnet and stress-test the network.
How to Get the MantleSwap ($MANT) Token Airdrop?
The best way to get the $MANT token airdrop is to interact with the MantleSwap Incentivized Testnet. These steps are also part of the Mantle Network ($BIT) token airdrop steps, which means you can potentially earn double the rewards! Here’s a step-by-step guide:
Claim Goerli ETH from Faucets
You will need Goerli ETH to mint $BIT test tokens and bridge them to Mantle Testnet. You can use the Alchemy Faucet or Goerli PoW Faucet.
Add Mantle Testnet to MetaMask
Add Mantle Testnet to your MetaMask wallet via ChainList.
Mint $BIT Test Tokens
Mint $BIT test tokens at the Mantle Testnet Faucet. The network is on Goerli Testnet.
Bridge $BIT to Mantle Testnet
Go to the Mantle Testnet Bridge, and transfer your $BIT from Goerli to Mantle Testnet. This process might take a while.
Join and complete Zealy tasks to unlock roles at MantleSwap’s Discord. These roles can help you earn more rewards in the future!
Airdrop Review
When reviewing an airdrop, there are several factors to consider. First, the likelihood the project will even do an airdrop in the first place. Then, to look at how many tokens the project intends to allocate towards airdrop campaigns, as well as the difficulty in participating in their airdrop. It is also important to look at the utility of the token so that there will be an actual use and purpose in participating in the airdrop in the first place. Finally, a factor to consider when reviewing an airdrop is whether the airdropped tokens are subject to any lockup period.
Likelihood of Airdrop: Although MantleSwap has not yet officially announced a token airdrop, it is typical for incentivized testnets to reward early users upon the launch of the native token. Additionally, the MantleSwap team has hinted on Discord at a potential $MANT airdrop.
Airdropped Token Allocation: The airdropped token allocation is yet to be announced.
Airdrop Difficulty: Simply claim $BIT test tokens and bridge them to Mantle Testnet. Swap tokens and provide liquidity at MantleSwap as frequently as you can.
Token Utility: The MantleSwap team will soon publish details about the utilities of $MANT.
Bybit is a cryptocurrency exchange offering trading perpetual contracts in the cryptocurrency market. However, it’s essential to understand the rates and fees that come with using the platform. In this article, we’ll explain Bybit’s funding rates and fees and give you some tips on how to manage them.
Use our PROMO CODE below to get a sign-up bonus of up to $30,000!
Bybit is a cryptocurrency exchange founded by Ben Zhou and launched in 2018. The exchange currently has over 10 million users worldwide and supports over 100 cryptocurrencies. Bybit offers the following products: spot trading, derivatives trading (including USDT/USDC perpetual contracts, USDC options, leveraged trading, inverse perps and futures), an NFT marketplace, and Bybit earn.
Bybit Funding Rate Explained
Bybit’s funding rate can be challenging to understand for new traders. However, it’s essential to know how it works to manage your trading costs effectively. In simple terms, it is a fee that traders pay or receive when holding a position overnight. If you’re holding a long position, you’ll pay a funding fee if the funding rate is positive. If you’re holding a short position, you’ll pay a funding fee if the funding rate is negative.
Bybit funding rates on perpetual contracts (Source: Bybit)
Funding Fees on Perpetual Contracts
Bybit charges a funding fee for holding positions overnight, and the fee is calculated based on the funding rate. This is calculated using the following formula:
Funding Fee = Position Value * Funding Rate
In this formula, “Position Value” is the total value of the trader’s position, and “Funding Rate” is the current funding rate. The fee is charged every eight hours, and it’s debited or credited to the trader’s account.
The Funding Rate is already stated on the screenshot, i.e. 0.0001%. The Position Value is calculated using the following formula:
Position Value=Quantity of Contract x Mark Price
For example:
Trader Bob holds a long position of 10 BTC contracts and the Mark Priceis 16,000 USDT at the end of the funding interval with a Funding Rate of 0.0001%.
To calculate the Position Value:
Position Value= 10 x 16,000 = 160,000 USDT
Now we can calculate the Funding Fee:
Funding Fee= 160,000 x 0.0001% = 0.16 USDT
Since the Funding Rate is positive (i.e. 0.0001%), long position holders have to pay short position holders. So, Trader Bob must pay 0.16 USDT to a short position trader. Meanwhile, a short position holder with the same quantity of contracts (i.e. 10 BTC) will receive 0.16 USDT.
Funding Fees on Inverse Contracts
Here’s how to calculate the funding fees on Bybit inverse contracts using the below screenshot as an example. Since the funding rate is positive, long position holders need to pay a 0.01% funding rate to short position holders.
Bybit funding fees on inverse contracts (Source: Bybit)
The funding fee is calculated using the following formulas:
Funding Fee= Position Value x Funding Rate
The Funding Rate is already stated on the screenshot, i.e. 0.01%. The Position Value is calculated using the following formula:
Position Value=Quantity of Contract / Mark Price
For example:
Trader Tom holds a long position of 10,000 BTCUSD contracts and the Mark Priceis 16,000 USD at the end of the funding interval with a Funding Rate of 0.01%.
To calculate the Position Value:
Position Value= 10,000 / 16,000 = 0.625 BTC
Now we can move on to calculate the Funding Fee:
Funding Fee= 0.625 x 0.01% = 0.0000625 BTC
Since the Funding Rate is positive (i.e. 0.01%), long position holders have to pay short position holders. So, Trader Tom must pay 0.0000625 BTC to a short position trader. Meanwhile, a short trader holding the same quantity of contracts (i.e. 10,000 BTCUSD contracts) will receive 0.0000625 BTC.
When does Bybit calculate its Funding Rates?
Bybit generally calculates its funding rates every 8 hours i.e. at 00:00 UTC, 08:00 UTC and 16:00 UTC. These are known as “funding intervals”. However, Bybit may adjust the interval depending on the live market situation. Particularly if there is a significant gap between the Last Traded Price and the Mark Price.
What are the Last Traded Price and the Mark Price on Bybit?
Bybit uses two prices to protect traders from market manipulation, also known as a Dual-price Mechanism. These are the Last Traded Price and the Mark Price. The Mark Price is used to decide when to liquidate a trader’s position and to measure their profits and losses. It is based on a global Spot price index plus a decaying funding basis rate. A trader’s position will only be liquidated if the Mark Price reaches their liquidation price. The Mark Price can be found at the bottom right-hand corner of the page.
The Mark Price can be found at the bottom right-hand corner of the page.
Bybit Mark Price as shown in yellow (Source: Bybit)
On the other hand, the Last Traded Price reflects Bybit’s current price and is always anchored to the spot price.
When do Bybit traders pay/receive the funding fee?
Traders will only pay or receive funding fees if they hold an open position at the end of every funding interval. As mentioned, this is generally at 00:00 UTC, 08:00 UTC and 16:00 UTC. However, Bybit warns users that opening/closing a position within 5 seconds before/after the funding interval does not guarantee they would be included or excluded from receiving or having to pay.
Users can see the current funding rate and when the next funding interval ends on Bybit. In the example above, the funding rate is negative. This means that short position holders will pay fees to long position holders at the end of the countdown.
The funding rate mechanism happens between traders, so Bybit doesn’t take any fees. If a user has to pay a funding fee, it is taken from their available balance. If they don’t have enough money in their balance, the fee is taken from their position margin. This can make the liquidation price of their position more likely to reach the mark price. This increases the risk of liquidation.
Bybit Funding Rate History
Bybit’s funding rate history is available here on the platform’s website. The history is crucial for traders who want to understand how the rates have changed over time and make informed trading decisions.
Mobile App
Bybit has a mobile app that you can download from Google Play or the Apple App Store. The app helps traders keep track of the latest rates and fees. It has a chart that shows the current funding rate for each contract on the platform.
Managing Bybit Funding Rates and Fees
Bybit funding rates and fees can affect how much money a trader makes. Traders need to manage these costs to make the most profit. Here are some tips on how to do that:
Watch the funding rates for the cryptocurrencies you trade. Look at the chart and past data to find patterns and make better decisions.
Be careful with your positions to lower your funding fees. Close positions before the funding interval if the rate is high or if you’re not sure about the position.
Bybit lets you trade with up to 100x leverage. This can make your profits or losses bigger. Use leverage carefully and don’t take on too much risk.
Make sure you have enough money in your account to pay the funding fees. Bybit will close your positions if you don’t have enough money to pay the fees.
How to profit with Bybit Funding Rates and Fees
Crypto funding rates are linked to the price trend of the asset. The spot market sets the rate. When the price of the cryptocurrency is going up, the rates will be higher. When crypto prices are rising, there are usually higher trading price premiums and rates. In these situations, traders who hold short positions on perpetual contracts and go long on the spot market can earn funding fees.
When crypto prices are falling, the trading price of perpetual contracts will be lower than the spot price. This will make funding rates go down. Traders who go long in the perpetual contracts market and hold short positions in the spot market during this time can receive funding fees.
On Bybit, you can check the historical and predicted rates here.
Bybit is a popular cryptocurrency trading platform that offers perpetual contracts on several cryptocurrencies. Traders need to understand the funding rates and fees associated with the platform to manage their costs effectively. By monitoring the rates, managing their positions, using leverage wisely, and keeping a sufficient balance, traders can maximize their profits on Bybit.
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Frequently Asked Questions (FAQs)
What is Bybit funding rate?
Bybit funding rate is the interest rate that traders pay or receive for holding positions overnight. It is calculated based on the difference between the funding rate index and the last traded price of the contract. Bybit charges a funding fee every eight hours for holding positions overnight.
What are Bybit funding fees?
Bybit funding fees are the fees charged for holding positions overnight. The funding fees are calculated based on the position value and the funding rate. The funding fee is debited or credited to the trader’s account based on the position they hold.
How are Bybit funding rates and fees calculated?
Bybit funding rates and fees are calculated based on the position value and the funding rate. The funding rate is determined by the difference between the funding rate index and the last traded price of the contract. The funding fee is calculated using the following formula: Funding Fee = Position Value * Funding Rate.
What is Bybit funding rate chart?
It is a chart that shows the historical funding rates for each cryptocurrency offered on the platform. Traders can use the chart to analyze the funding rates and make better-informed trading decisions.
What are some tips for managing Bybit funding rates and fees?
Traders can manage Bybit funding rates and fees by monitoring the rates, managing their positions carefully, avoiding overexposure to the market, using leverage wisely, and ensuring that they have a sufficient balance in their account to cover the funding fees.
What is the funding fee Binance?
Binance also charges a funding fee for holding positions overnight. The funding fee on Binance is calculated using the same formula as Bybit. However, the rates and fees on Binance may differ from those on Bybit.
Bybit is a powerful cryptocurrency derivatives exchange suitable for many traders, with products such as Bitcoin Perpetual futures with leverage. The exchange offers the ability to Long or Short cryptocurrency assets, giving traders to profit from both the rise or fall of Bitcoin prices.
Bybit exchange is popular due to social media as it is frequently featured on different YouTube and Social Media Channels. The exchange offers generous signup bonuses and trading bonuses, enticing users to join the exchange for up to $90 in trading credit – but there is a catch. Bybit requires users to trade on the exchange where fees are based on the amount traded – hence trading fees can rack up to thousands of dollars (similar to other crypto derivatives exchanges). In this article we’ll look at what is derivatives tradings and features of Bybit to ultimately answer – is Bybit a good exchange
Key Features
Leveraged Trading
Perpetual futures contract
Trading activities
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What is Derivatives Trading
The core trading product offered by ByBit is cryptocurrency derivatives trading. Derivatives are financial tools that derive value from the underlying product – in this case cryptocurrencies such as Bitcoin. ByBit exchange trades contracts based on the underlying asset instead of the asset themselves – this allows higher leverage and more types of products. Derivative products are by institutions, companies, miners and traders to gain advantage of market conditions. For example, Bitcoin miners who know they will receive Bitcoin in the future may choose to short Bitcoin at current prices to protect themselves from future price volatility.
Derivative products allows traders to speculate on the future value of various digital assets and trade their corresponding futures. This is different from regular trading as there are “shorting” options where traders benefit from an asset falling in price (without initially owning the asset). Traders can also take averaged positions where they can drastically increase their exposure to an asset with 5, 10 or even 50x leverage.
Bybit is currently the 7th most popular derivatives platform by volume. As of the 14th of April, the exchange handles $874 Million USD per day on the platform. This is a huge amount of trade volume as users can easily trade large amounts due to leveraged assets.
Types of Derivatives Products on ByBit:
Futures – Futures is a type of standardized forward contract, a legal agreement to buy or sell an asset at a predetermined price.
Options – Options are a special form of futures contract that gives the holder the right but not the obligation to sell at a future strike price. These are common used to protect against price volatility.
Supported countries
Bybit Services are not available to clients located or residing in the United States, Cuba, Crimea, Sevastopol, Iran, Syria, North Korea, Antigua or Barbuda.
Bybit Offers and Coupons
Bybit Trading Coupons and Offers
Bybit offers a vast amount of coupons and initial funding offers for new users. This includes a $50 dollar bonus for funding the account, along with offers for following their social media account. The exchange also offers weekly trading rewards for active traders on the exchange.
Bybit Testnet
You can also test transactions on the Bybit Testnet. This allows users who are unfamiliar with features to trade without using real Bitcoin.
Bybit Controversy and Affiliate Programs
Bybit gained notoriety due to users losing money on leveraged trades on the exchange. Leveraged trading is extremely dangerous due to the volatile nature of cryptocurrencies. It is important to remember these advanced trading tools are for advanced users only, and the risks associated with trading must be fully understood.
Frequently Asked Questions (FAQs)
Does Bybit Allow US traders?
The exchange does not allow US Citizens to trade on its platform for regulatory reasons. This rule is enforced by I.P. verification, where traders with a US I.P. address will not be able to trade. It is possible to trade on the exchange without KYC (passport verification) verification.
Does Bybit require KYC?
Currently, Bybit does not require a passport or ID verification to trade on the exchange. There are currently no withdrawal limits. However, not completing the KYC procedures when using a cryptocurrency exchange carries risks. This is because if the exchange is hacked or it collapses, there would be no way of identifying and proving what funds you had there, which would make recovery extremely difficult, if not impossible.
Disclaimer: Cryptocurrency trading involves significant risks and may result in the loss of your capital. You should carefully consider whether trading cryptocurrencies is right for you in light of your financial condition and ability to bear financial risks. Cryptocurrency prices are highly volatile and can fluctuate widely in a short period of time. As such, trading cryptocurrencies may not be suitable for everyone. Additionally, storing cryptocurrencies on a centralized exchange carries inherent risks, including the potential for loss due to hacking, exchange collapse, or other security breaches. We strongly advise that you seek independent professional advice before engaging in any cryptocurrency trading activities and carefully consider the security measures in place when choosing or storing your cryptocurrencies on a cryptocurrency exchange.
