Liquidity Incentive Program
The Liquidity Incentive Program aims to improve the liquidity on dexie by encouraging market makers to create offers within a specified spread of the current market price. Market makers who create qualifying offers receive rewards in DBX or corresponding project tokens.
Rewards are higher for offers closer to the market price. Only open offers receive rewards.
Each incentivized asset pair is assigned a reward rate, which is shared among all qualifying offers within the pair.
Requested | Offered | Qualifying Range (per Offer) | Reward Rate (Total) | Maximum Spread | |
---|---|---|---|---|---|
wUSDC.b | XCH | 1—100 XCH | 341% APR total100 DBX/day | 5% within market price 30.552XCHfarming Trade | |
XCH | wUSDC.b | 50—5,000 wUSDC.b | 49% APR total100 DBX/day | 5% within market price 3,206.5wUSDC.bfarming Trade | |
wUSDC | XCH | 1—100 XCH | 128% APR total100 DBX/day | 5% within market price 81.391XCHfarming Trade | |
XCH | wUSDC | 50—5,000 wUSDC | 243% APR total100 DBX/day | 5% within market price 638wUSDCfarming Trade | |
DBX | XCH | 0.1—20 XCH | 1,468% APR total100 DBX/day | 5% within market price 7.1XCHfarming Trade | |
XCH | DBX | 20—5,000 DBX | 174% APR total100 DBX/day | 5% within market price 21,015DBXfarming Trade | |
SBX | XCH | 0.1—20 XCH | 110% APR total100 DBX/day | 5% within market price 94.804XCHfarming Trade | |
XCH | SBX | 10,000—1,000,000 SBX | 406% APR total100 DBX/day | 5% within market price 506,477SBXfarming Trade | |
🍊 HOA | XCH | 0.1—20 XCH | 180% APR total1,200 HOA/day | 10% within market price 76.031XCHfarming Trade | |
🍊 XCH | HOA | 1,000—200,000 HOA | 763% APR total1,200 HOA/day | 10% within market price 57,386HOAfarming Trade |
How to claim rewards
Rewards can be claimed at any time, regardless of the offer status, either on the Your Offers page or by using a claim tool. dexie-rewards is an open source tool for advanced market makers which runs locally and automatically claims all rewards for offers created in the official Chia wallet.
Due to batching, it can take up to 15 minutes for rewards to be sent out after claiming. Unclaimed rewards will expire 6 months after the last date the offer received a reward. Expired DBX rewards are returned to the DBX community allocation.
Automatic Claim
When submitting offers via the API, the auto_claim parameter can be set to true to automatically claim rewards for the offer. This feature is useful for market makers who want to streamline their workflow. Those rewards are batched and sent out once daily to prevent excessive coin dust. Refer to the dexie API documentation for more information.
When to claim rewards
It's recommended to claim rewards once an offer is completed or cancelled, as from that point on it won't accrue more rewards. Although claiming rewards is possible anytime, doing so frequently may result in many small dust coins in your wallet. To merge these, occasionally send your total claimed token balance to yourself.
Reward Calculation
To ensure a fair reward distribution, snapshots of the order book are taken at random intervals, averaging 5 minutes apart.
Each offer within a snapshot is assigned points based on the offered amount (A) and the proximity of the offer price (P) to the market price (M) within the maximum spread (S). Rewards are then proportionally distributed according to the reward rate and the points each offer in the snapshot has. Offers with amounts less than the minimum range specified in the table above are excluded, and offers exceeding the maximum range (Rₘₐₓ) are capped at this maximum range.The market price is determined using a minimum depth of 10 times Rₘᵢₙ to disregard negligible, low-priced offers.
The total reward rate is shared among all qualifying offers within an asset pair, which means that the more liquidity there is in the market, the lower the rewards might be for a given offer. Consequently, illiquid markets are the most incentivized, as the rewards are shared among fewer offers, leading to potentially higher rewards per offer.
Combined (aggregated) offers, offers exceeding 25 involved coins, or offers which request or offer multiple assets, are not eligible for rewards.
Note: For offers with overlapping input/output coins within an asset pair, only the first (best) offer is considered for the reward calculation. Market makers need to ensure that they offer distinct coins to distinct destination addresses. More about this under Limitations on the Combined Offers page.
Disclaimer
To become a market maker, it's essential to understand the risks involved. Providing liquidity can be profitable but it can also lead to inventory loss. dexie is not responsible for any losses or mistakes. Liquidity rewards can be adjusted or removed at any time without prior notice.