By Adam Ulisnyak
What rewards can I receive and how?
Users will be able to receive ALGX tokens as a reward for providing liquidity on Algodex Mainnet. Please read our documentation for complete details regarding the Liquidity Rewards Program. If you traded verified asset pairs on Algodex between February 10, 9:00 EST, and June 2, 23:59 EST of 2022, you are eligible for Mainnet Version 1 Rewards. If you traded verified asset pairs on Algodex on or after June 3, 2022, you are eligible for Mainnet Version 2 Rewards.
How do I become eligible for rewards?
- A user must be able to trade verified asset pairs to be eligible for rewards. Please note that there are regional restrictions on certain assets.
- A user must sign up for the rewards app to be eligible for rewards distribution.
- A user must place limit orders appropriately so that it fills out the formula. The formula can be optimized to maximize rewards.
The Algodex Liquidity Rewards Formula is as follows:
QMARKET is calculated for each verified asset pair on Algodex. Users can trade multiple different asset pairs and receive rewards by doing so as long as the asset pair is verified and the user is eligible. A user’s total score for a week across all asset pairs is denoted by QFINAL.
The key to maximizing rewards is by ensuring no term in the formula is incomplete, otherwise, the score will be 0. Additionally, ensure that UptimePeriod is maximized, as it is the most heavily weighted term. Users that are able to provide liquidity with a tight spread will find they receive the highest Q score.
Remember that rewards are distributed proportionately on a user’s QFINAL score and the platform QPLATFORM score, which is the summation of all QFINAL scores. This ensures that users who provide liquidity to less-liquid asset pairs are fairly rewarded.
To learn more about Algodex, read our docs and join us on our social media: