The existing liquidity provider rewards formula implements a maximum spread for
trades to be included in the calculation. When a bid or ask is above the maximum spread, the order is not included in the scoring for rewards. The parameter incentives liquidity providers to make orders closer to the mid price, improve the liquidity of the market.
Maximum spreads are currently set at: 20 basis points for BTC-USD and ETH-USD,
and 40 basis points for all other markets.
We are looking for experienced researchers to explore optimal MaxSpread
parameters. The research should make use of market data, peer analysis, and theory
to provide the community with improved parameters that fairly reward liquidity providers for competitive spreads. The deliverable may include a governance
proposal based on the results.
Research Paper + Governance Proposal
$10,000 - $20,000
