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Market Making Rewards
A total of 0.125% of the total HFT supply (1,250,000 HFT before inflation) will be reserved for market making rewards each month.
The rewards that each market maker will receive is computed pro-rata based on a market maker HashScore. The score is computed based on a formula which assigns weights to pool liquidity and LP yields. The initial weighting will be 0.4 for trading volume and 0.6 for LP yields in order to incentivize the growth of the protocol's TVL. This can be later changed by governance after observing market making data.

Full Formula:

Variable
Description
vpv_p
Monthly volume of pool 'p'
VpV_p
Total monthly volume across all pools
ypy_p
Monthly yield generated by pool 'p'
YpY_p
Total monthly yield across all pools
hsmhsm
Market Maker's hashscore
hsm=0.4vpVp + 0.6ypYp hsm = {0.4v_p \over V_p} \space + \space {0.6y_p \over Y_p}
Last modified 1mo ago
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