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![crypto_linn Avatar](https://lunarcrush.com/gi/w:24/cr:twitter::1139174563802226688.png) 🉐 Crypto Linn [@crypto_linn](/creator/twitter/crypto_linn) on x 72.8K followers
Created: 2025-07-22 08:56:53 UTC

Mucho updates for le MUX:

X. tranches...but done right:

@muxprotocol v3 splits yield into two clear lanes:
- senior tranche (whales):
   - deposit stablecoins
   - earn 10–15% APY (5% base + borrow fees)
   - zero market exposure

- junior tranche (degenerates):
   - borrow stablecoins
   - up to 2.5x leverage on LP positions
   - high risk, high reward

WHY:
- tranches are isolated, whale capital is never at risk if degens get liquidated
- no more “risk soup” where everyone sinks together
- whales can whale, degens can degen, MUCHO clean separation

X. single-token LPs = real capital efficiency

MUX ditches dual-token LPs and uses pure-asset pools:
- XXX% ETH pool or XXX% USDC pool
- liquidity can be used fully for longs or shorts based on demand
- traditional perps cap out at 50/50, MUX hits XXX% utilization

e.g. 
traditional: $10M ETH/USDC → max $5M longs
BUT
mux: $10M ETH → full $10M can go to longs

this results in: 
- more capital deployed
- higher yield for LPs
- cleaner market dynamics

X. Morpho = battle-tested base layer
- morpho is the lending infra behind $2B+ TVL
- isolated markets = one bad pool doesn’t wreck the whole protocol
- real-time interest accrual
- professional liquidation engine

tldr: mux v3 lets you choose your exact risk/reward, max capital efficiency, precision exposure, clean separation of risk + this is written in collab with le MUX chadderoonies

![](https://pbs.twimg.com/media/GwczIKCaUAAoHZW.jpg)

XXXXX engagements

![Engagements Line Chart](https://lunarcrush.com/gi/w:600/p:tweet::1947581602600784086/c:line.svg)

**Related Topics**
[stack](/topic/stack)
[positions](/topic/positions)
[apy](/topic/apy)
[stablecoins](/topic/stablecoins)
[whales](/topic/whales)
[muxprotocol](/topic/muxprotocol)
[le](/topic/le)

[Post Link](https://x.com/crypto_linn/status/1947581602600784086)