For market maker

Market makers who meet certain requirements can participate in the NDX token mining program for market makers. Thus, NevDEX will incentivize users to provide liquidity to the order book in a decentralized manner with no need to conclude agreements with market makers.

How does it work for makret maker?

The distribution of NDX tokens for market-making involves only those users whose maker volumes for the previous epoch exceeded 1% of the total maker volumes for this trading pair.

Once a minute, NevDEX takes a snapshot of the order book. According to the algorithm described below, the R-score of each market maker who can participate in the distribution of tokens is calculated. At the end of the epoch, the sum of the user's R-score is also calculated. The market maker receives a share of the total rewards for an epoch corresponding to his share of the R-score.

The period for which NDX tokens are distributed is 7 days (1 epoch).

Algorithm for calculating the R-score of a market maker

Step 1. Calculating the R-score at the time of each snapshot

The criteria that an order must satisfy to be taken into account when calculating the R-score:

• Minimum order volume - $1000

• Maximum spread from mid price - 30 bps or 0.3% for BTC

Step 2. After the end of the epoch, the trader's R-score is summed up for all snapshots. The total number of snapshots is 20160, with 1 snapshot per minute for 7 days.

Step 3. The percentage of the user's work time for the epoch is calculated, as shown below (depending on the number of snapshots user's R-score was above 0)

After that, the final R-score of the user is calculated:

The final R-score of each user is divided by the total amount of R-score to calculate what share of the total rewards for market making the user will receive.

The amount of NDX the user receives: