Recently, I came across an interesting market maker incentive design. Rather than traditional trading rebates, this scheme directly monetizes the value of "placing orders themselves." The core logic is straightforward: you don't need to execute trades every day. As long as you continuously and stably place two-way limit orders within a 10 basis point spread, the project allocates token rewards based on your online duration——a total of 5 million tokens per month. This model is very friendly to liquidity providers, reducing risk exposure while ensuring depth in the trading pair. From the project's perspective, using token incentives to drive liquidity has controllable costs and higher efficiency. To some extent, this reflects a shift in DeFi market maker incentive design from "trading volume-driven" to "time-depth-driven" thinking.
Recently, I came across an interesting market maker incentive design. Rather than traditional trading rebates, this scheme directly monetizes the value of "placing orders themselves." The core logic is straightforward: you don't need to execute trades every day. As long as you continuously and stably place two-way limit orders within a 10 basis point spread, the project allocates token rewards based on your online duration——a total of 5 million tokens per month. This model is very friendly to liquidity providers, reducing risk exposure while ensuring depth in the trading pair. From the project's perspective, using token incentives to drive liquidity has controllable costs and higher efficiency. To some extent, this reflects a shift in DeFi market maker incentive design from "trading volume-driven" to "time-depth-driven" thinking.