Reward Allocations

OLP Reward Allocations to Markets and Market Makers

Market Reward Allocations

Rewards are allocated to eligible markets in two different methods:

1. Static allocations

2. Static allocations with a dynamic component

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. 1% will be preallocated to each remaining eligible market as a minimum allocation:

Market	Total Allocation
BTC/USDT Perp	12.5%
ETH/USDT Perp	12.5%
INJ/USDT Perp	12.5%
Other Eligible Markets	1% each + formula based allocation, with reward cap based on formula (see table below)

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

Dynamic Market Reward Allocations

The remaining rewards will be allocated to the eligible markets (excluding BTC/ETH/INJ Perps) based on the following equation:

$$Rewards_{Market_i} = TAR * Preallocation_{Market_i} + TAR * (1- Preallocation_{Total}) *\newline \frac {\sum\limits_{MM} (LS_{MM,\ Market_i})^{0.7} * Volume_{MM,\ Market_i}} {\sum\limits_{Market}\sum\limits_{MM} (LS_{MM,\ Market})^{0.7}*Volume_{MM,\ Market}}$$

$$\text{where} \quad Preallocation_{Total} = 0.125+0.125+0.125+Other\ Preallocations$$

$$\text{and} \quad TAR = Total\ Available\ Rewards$$

$Other\ Preallocations$ refers to the static market reward allocations for non-BTC, ETH, and INJ perp markets.

For more information on $TAR$ each epoch, see the Reward Pool page.

For each eligible market, the product of the ’s $LS^{0.7}$ and $Volume$ is aggregated across all MMs. Rewards are allocated to each market based on the proportional aggregate products across all applicable markets. The preallocation amount (1%) for the market is also added in.

Markets Added Partway Through an Epoch

For markets added to the eligible list midway through an epoch, the 1% preallocation will be prorated. For example, if ARB/USDT is added on the 15th day of the epoch, then the market will receive a 0.5% preallocation (there are 14 days left out of 28. If there are 17 days left, then the market will receive $\frac {17}{28} * 0.01$).

Market Allocation Cap

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

$$Rewards_{max} = TAR\ *\ \frac{1 - 0.375}{n}*2$$

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

# Eligible Markets Excluding BTC/ETH/INJ Perps	Rewards Cap
6	20.83% of Total Available Rewards
7	17.86% of Total Available Rewards
8	15.63% of Total Available Rewards
9	13.89% of Total Available Rewards
10	12.50% of Total Available Rewards
11	11.36% of Total Available Rewards
12	10.42% of Total Available Rewards
...	...

Market Maker Reward Allocations

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

$$Rewards_{MM_i} = \sum_{Market}\left(Rewards_{Market} * \frac {TS_{MM_i, \ Market}} {\sum_{MM} TS_{MM,\ Market}} \right)$$

Each will receive rewards based on the ’s proportional $TS$ within the market, subject to governance approval.

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