4.2 THE LIQUIDITY OF MAGC TOKEN
The Magic Cube protocol uses AMM (Automated Market Maker) to facilitate the trading between mcAssets with stablecoin USDM. For example, trading against the mcAPPL/USDM pool on Ring Swap would be the easiest way for traders to access the APPL stock.
Minting and liquidity providing are essential services without which Magic Cube would not be able to operate. Therefore, it is only necessary for traders to compensate liquidity providers.
In order to incentivize minting and liquidity providing, Magic Cube protocol rewards liquidity providers with the following rewards:
  • Trading fee: All mcAsset tradings through AMM pay a small commission to the liquidity provider of that mcAsset.
  • Local MAGC token: Magic Cube defines a local token with a deterministic inflation plan that rewards the mcAsset(s) liquidity provider.
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