Perpetual Futures Exchange Update: a Successful Beta and Updated Incentives Structure
Dear alpacas,
We are excited to share with you that the beta phase of Perp has been a great success. We have attracted ~$1.5 million in liquidity and achieved over $12 million in trading volume over the past 3 weeks, with limited incentives. The activity level was in line with, or even was higher than we had expected. We thank our community for providing feedback and suggestions which helped us enhance Perp’s features. Many UX/UI improvements have already gone live throughout the last few weeks, and many more are coming.
Here are some upcoming things you can look forward to:
- TradingView technical chart integration
- Info and analytics page — we are working to create both a customized stat page as well as a dashboard on Dune
- Multi-language support
- Referral program — rewards to go live after beta
- Trading fee discount program — to go live after beta
- Trader leaderboard
- PnL sharing feature
- And much more!
💸Updated Incentives Structure
To further increase trading volume, we have decided to allocate a portion of the incentive rewards to traders. This shift will create a flywheel effect that will increase trading volume significantly. Higher trading volume would mean higher APR% to ALP stakers (and higher protocol revenue). Higher APR should attract more liquidity, which will then allow traders to trade with larger sizes, and subsequently generate more fees.
Traders will be eligible for weekly ALPACA rewards based on their % share of total platform’s trading volume for that week. However, we will only count open orders (trades that increase your position size) towards the rewards allocation to discourage wash trading.
Example:
- Alice opened a long BTCB with a position size of 100,000 USD. She then later closed her entire 100,000 USD position in the same week.
- Let’s assume the total trading volume in that week (size-increasing trades only) was $5 million, Alice would earn 100k / 5M = 2% of the trader rewards that week.
- Note that her closing trade does not count towards trading incentives.
Below is the updated incentive distribution schedule:
Note: the % distribution from week9-week12 is TBD. We will make a decision based on usage from week5-week8.
With this change, our engineering team requires an extra week to finish the code to track and distribute rewards to traders. Thus, we are making an updated timeline where the full launch will be on April 6th.
New timeline: Midnight UTC, April 6th.
- Zero-fee trading promotion ends
- Trading fees discount program starts
- Trading rewards incentives start
- Referral rewards tracking starts
