Market Incentives
Last updated
Last updated
In TradFi, Market Makers are compensated and/or incentivized to provide liquidity and generate volume. In DeFi, we have Yield Farms to incentivize liquidity provision but there are no primitives to incentivize volume.
This is why Market Making deals still happen off-chain and behind closed doors, even in Web3.
More recently, Point Farms have become a popular mechanism among DeFi platforms to attract liquidity. However, platforms inevitably lose liquidity once they either (a) taper off their reward rates and/or (b) the debase their reward token through inflation.
LET'S COOK Market Incentives provide a sustainable way for token issuers themselves to incentivize volume on their own tokens, rather than trading platforms having to do it for them.
Creators can allocate a supply of their token to be distributed over time to users that trade Spot on FluxBeamDEX through the LET'S COOK interface.
Similar to Yield Farms for AMM LPs, every day a set amount of tokens is divided among that day's traders in proportion to their trading volume.
The Markets page shows the total amount of rewards available each day.
Creators can also allocate a supply of their token to be distributed over time to users that place Limit Orders through LET'S COOK.
Every day a set amount of tokens is divided among that day's market makers in proportion to their volume executed.
Rewards are calculated at the end of the day (UTC) and become available to claim on the next calendar day.
Individual traders' share of the rewards are calculated and become available at the end of the day (23:59 UTC).
Rewards can be checked collected via the bottom panel on each token's Chart page. They can also be found in the Rewards tab of the Trade page.
