M2’s Native Boost is a innovative feature that enables Earn users to maximize their returns by allocating a small portion of their principal investment. This mechanism offers a strategic approach to optimizing yields while ensuring transparency and fairness within the Earn ecosystem.
Understanding Native Boost
Native Boost is an optional feature available to Earn users seeking an enhanced Annual Percentage Rate (APR). Rather than acquiring and utilizing MMX tokens, users may opt to allocating a portion of their principal investment to qualify for an increased yield. This approach aligns incentives within the M2 ecosystem and provides a seamless, transparent method for yield enhancement.
How it works (Example with USDT – Fixed 360-Day Plan)
1. A user subscribes to a 360-day Fixed Earn plan with10,000 USDT.
2. The standard non-boosted APR is 5%, meaning they earn 500 USDT in interest over the year.
3. With Native Boost, the APR increases to 8%, meaning they now earn 800 USDT in total interest.
4. To unlock the additional 300 USDT in boosted interest, the user pays 150 USDT, which is deducted from their principal.
5. Their final locked balance becomes 9,850 USDT, but they now receive 800 USDT in rewards instead of 500 USDT.
6. Deducted principal is used to buy and burn MMX
Mechanism of Operation
1. Selection of Earn Plan – Users may choose from fixed, flexible, or custom Earn plans based on their investment objectives.
2. Activation of Native Boost – Users can opt into this feature by consenting to a predefined deduction from their principal investment in exchange for a higher yield. The price of the allocation is defined by the Earn plan terms, where users essentially subsidize higher yield, with a portion of their original principal equal to 50% of the additional interest gained via Boost.
3. Application of Higher Yield – The plan will be activated with the adjusted principal amount after the boost fee deduction for the duration of the Earn plan.
4. Receipt of Boosted Returns – Upon plan maturity, users receive their principal amount (minus the allocated portion) along with accrued interest at the higher APR.
Target Audience for Native Boost
This feature is particularly beneficial for users who:
- Seek maximum yield efficiency without assuming additional market exposure.
- Prefer a simplified yield enhancement mechanism without engaging in token purchases or complex investment strategies.
- Aim to optimize capital deployment within the Earn product to achieve higher returns on locked assets.
Advantages of Utilizing Native Boost
- Seamless and Transparent Implementation – Users are not required to purchase or manage MMX tokens; the feature can be activated directly within the Earn plan.
- Competitive Yield Enhancement – Provides access to an APR boost through a clearly defined and straightforward mechanism.
- Absence of Additional Market Risk – Since the yield enhancement is based on a boost mechanism rather than market speculation, users can benefit from increased returns without additional exposure to volatility.
Implications for MMX and MMX Holders
The introduction of Native Boost does not diminish the value or utility of MMX. Instead, it complements the existing MMX Boost by offering an alternative for users who prefer not to purchase or utilize MMX directly while still accessing higher yields.
Key considerations for MMX holders include:
- Preservation of Supply Integrity – Native Boost functions independently and does not introduce additional MMX tokens into circulation.
- Sustained MMX Utility – The MMX Boost remains a valuable option for users who elect to burn MMX rather than a portion of their principal investment.
- Strengthened Ecosystem Engagement – By increasing participation in Earn plans, Native Boost fosters greater engagement within M2’s yield ecosystem, indirectly supporting the broader adoption and utilization of MMX.
- Increased Burning Pool – Principal amounts deducted for Native Boost will be accumulated and converted to MMX in the background, which will be regularly burned in alignment with the MMX Whitepaper and M2’s deflationary model.
Conclusion
Native Boost presents a compelling opportunity for users seeking to enhance their yield efficiency within the M2 Earn ecosystem. By providing a transparent and seamless method for yield optimization, this feature supports both individual investment strategies and the broader M2ecosystem. For further insights or to explore institutional opportunities, please contact the M2 BD team at institutional.sales@m2.com.
Disclaimer:
It is highly recommended to conduct thorough research prior to making any financial decisions. Please note that this article's purpose is solely for educational purposes and the author and the organization, M2, do not influence the reader's investment or trading choices.