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  • Market Reward Allocations
  • Static Market Reward Allocations (Preallocations)
  • Dynamic Market Reward Allocations
  • Market Allocation Cap
  • Reward Allocations
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  1. Rewards
  2. Open Liquidity Program (OLP)
  3. Program Details

Reward Allocations

OLP Reward Allocations (Epoch 43 Onwards)

PreviousFormula ParametersNextFlexible Reward Allocations

Last updated 2 months ago

Market Reward Allocations

Rewards are allocated to in three different methods :

  1. Static allocations

  2. Minimum allocation with a dynamic component

  3. Flexible reward allocations

Static Market Reward Allocations (Preallocations)

12.5% of INJ rewards will be preallocated to each of the BTC/USDT PERP market, ETH/USDT PERP market, and INJ/USDT PERP market. The remaining INJ for the epoch will be allocated to each remaining eligible market with a minimum allocation of 100 INJ:

Market
Total Allocation

BTC/USDT Perp

12.5%

ETH/USDT Perp

12.5%

INJ/USDT Perp

12.5%

Other Eligible Markets

Formula based allocation (see below)

Static allocations may change over time as more markets are added to the eligible list

Dynamic Market Reward Allocations

As of epoch 43, the remaining rewards are allocated to eligible markets (excluding BTC/ETH/INJ Perps) based on the following schematic.

First, each epoch starts fresh, such that every pair has an equal chance of earning the maximum total available reward for that epoch, regardless of trading volume and liquidity from the prior epoch. Each pair starts day 1 of the epoch with a range of possibility, from a minimum of 100 INJ for the epoch.

Prior to this change, minimum rewards were 400 INJ, maximum rewards were around 900 INJ, and there was insufficient variation in reward accrual between pairs with low volume and pairs with substantially more volume. With this change, liquidity providers are rewarded for volume in popular markets.

where

With this range defined, the steps to calculate the reward for a market are :

4) Iterate until there are no remaining rewards.

Markets Added Partway Through an Epoch

For markets added to the eligible list midway through an epoch, the preallocation will be prorated. For example, if ARB/USDT is added on the 15th day of the epoch, then the market will receive half of the rewards for the epoch (as there are 14 full days remaining out of 28).

Market Allocation Cap

where TPR is equal to the percentage (expressed as a decimal) of total preallocated rewards (currently 0.375) and n is the number of non-preallocated pairs.

Reward Allocations

Rewards to individual institutional liquidity providers will be allocated based on the following equation:

Rewards for addresses totaling < 1 INJ at the end of each epoch will be disregarded to reduce the overhead of the disbursement process.

For the reward allocation process up through epoch 42, please see Reward Allocations (Legacy).

The range for each market's rewards will progress throughout the epoch, converging on the final day of the epoch to the true reward for that market. The range [Rewardsmin;Rewardsmax][Rewards_{min};Rewards_{max}][Rewardsmin​;Rewardsmax​] will be defined per market as follows :

MinVolume=Min(Market traded volume since beginning of epoch)MaxVolume=Max(Market traded volume since beginning of epoch)MinVolume=Min(Market\ traded\ volume\ since\ beginning\ of\ epoch) \\ MaxVolume=Max(Market\ traded\ volume\ since\ beginning\ of\ epoch)MinVolume=Min(Market traded volume since beginning of epoch)MaxVolume=Max(Market traded volume since beginning of epoch)
Rewardsminmarket i=100+Volumemarketi−MinVolumeMaxVolume−MinVolume(Rewardsmax−100)Rewards_{min_{market\ i}}=100+\frac{Volume_{market_{i}}-MinVolume}{MaxVolume-MinVolume}(Rewards_{max}-100)Rewardsminmarket i​​=100+MaxVolume−MinVolumeVolumemarketi​​−MinVolume​(Rewardsmax​−100)

and RewardsmaxRewards_{max}Rewardsmax​ is still calculated as on the bottom of this page. Ergo, the highest traded volume market will receive RewardsmaxRewards_{max}Rewardsmax​ and the lowest traded market by volume will have a minimum reward of 100 INJ.

It must be noted that RewardsminRewards_{min}Rewardsmin​ is just the floor for the rewards range, it will never be equivalent to the reward except in the case of the highest traded volume market where range will be trivial [Rewardsmax;Rewardsmax][Rewards_{max};Rewards_{max}][Rewardsmax​;Rewardsmax​], in which case rewards will be equal to RewardsmaxRewards_{max}Rewardsmax​. This is a linear function that goes from 100 INJ to RewardsmaxRewards_{max}Rewardsmax​.

1) Start with RewardsMarketi=Rewardsminmarket iRewards_{Market_{i}}=Rewards_{min_{market\ i}}RewardsMarketi​​=Rewardsminmarket i​​

2) Distribute the remaining rewards, RR, with RR=TAR−∑iRewardsminmarket iRR=TAR-\sum_{i}Rewards_{min_{market\ i}}RR=TAR−∑i​Rewardsminmarket i​​using the formulas above.

3) For any calculated rewards that exceed RewardsmaxRewards_{max}Rewardsmax​, redistribute this across all markets again following the formula above.

For each market that has dynamic reward allocations, a hard cap will be applied according to the following formula, where nnn is the number of eligible markets excluding BTC, ETH, and INJ perps:

Rewardsmax=TAR ∗ 1−TPRn∗2Rewards_{max} = TAR\ *\ \frac{1 - TPR}{n}*2Rewardsmax​=TAR ∗ n1−TPR​∗2

Any reward allocations that exceed the cap will be redistributed amongst the other eligible markets according to the .

RewardsMMi=∑Market(RewardsMarket∗TSMMi, Market∑MMTSMM, Market)Rewards_{MM_i} = \sum_{Market}\left(Rewards_{Market} * \frac {TS_{MM_i, \ Market}} {\sum_{MM} TS_{MM,\ Market}} \right)RewardsMMi​​=Market∑​(RewardsMarket​∗∑MM​TSMM, Market​TSMMi​, Market​​)

Each institutional liquidity provider will receive rewards based on their proportionalwithin the market, subject to governance approval.

eligible markets
dynamic allocation formula
TSTSTS