Market liquidity

Every investor can earn additional money if he acts as a market maker.

Order book stored on the blockchain allows us to track each account which has bid and offer for specific project during each business day.

Each account that has bid and offer for a specific project at least 90% of the time in each 8-hour time frame is deemed a market maker.

Money distribution

All market makers split 10% from the daily payout for each project. Each market maker receives points according to the calculation below.

The market maker reward is paid in project base stable cryptocurrency into the address of the market maker's account.

All market maker points sum up, and the 1/3 of market maker daily reward is distributed proportionally to all market maker accounts for each 8-hour time frame.

Calculating market maker points

The points are determined by the maximum spread between the buy and sell prices quoted by a market maker during any 90% of the 8-hour time frame, and by the quoted volume.

The relative spread is calculated as $\dfrac{\text{Offer} - \text{Bid}}{\text{Offer}}$. The smaller the spread is, the greater the point quota.

spread	points received per $1
10%	1
5%	10
1%	100
0.5%	1000

Quoted volume is calculated as maximum volume which was present from the account at the 90% of time during the time frame. The maximum volume is calculated as minimum of bid and offer volume in specific time.

Time frames

Time frame for specific market maker calculation.

UTC: 00:00 - 08:00 , 08:00 - 16:00 , 16:00-24:00

CET: 01:00 - 09:00 , 09:00 - 17:00 , 17:00-01:00

EST: 04:00 - 14:00 , 14:00 - 20:00 , 20:00-04:00

PST: 01:00 - 09:00 , 09:00 - 17:00 , 17:00-01:00

Example

Market maker 1 has spread 10% with 90% time quoted with the quantity of $100 worth of assets.

Market maker 2 has spread 0.9% with 90% time quoted with the quantity of $10 worth of assets.

MM1 has $100 \cdot 1 = 100$points.

MM2 has $10 \cdot 100 = 1000$ points.

The sum of market maker points is 1100 points.

If the daily reward is $60 for all makers, the 8-hour window has $20.

$20 is divided among all market makers, so MM1 will receive $20 \cdot 100/1100 = \$1.8$

MM2 will receive $20*1000/1100 = \$18.2$