Addressing decentralized liquidity: Introducing DDEX’s Maker Rebate Program
At DDEX, we’re on a mission to redefine decentralized exchange by offering user friendly products and robust liquidity.
Today, we’re super excited to announce the first version of our Maker Rebate Program, our incentive system which encourages institutional market makers and market making firms to bring tight bid/ask spreads and sufficient depth for users to trade.
Starting from Oct 19,2018 AT 12 PM (GMT + 8, China Local Time ), DDEX will offer Maker Rebate up to 150% of trading fees for market makers who contribute more than 10,000 ETH Trading Volume in 30 days.
How will Market Makers benefit from this program?
- For example, if a Market Maker is market making on ETH — DAI pair, he/she contributes 15,000 ETH trading volume in 30 days, he/she will get 15 ETH
What is an order maker?
- When you “make” an order on DDEX that is not instantly matched to another existing order, you are providing liquidity to the orderbook — this is called being an order “maker” (as opposed to an order “taker”, who fills an existing order instantly and “takes” it off the orderbook)
How does the rebate work?
- If anyone is interested in participating the program, please email bowen@ddex.io with your Ethereum address.
- We will calculate the Rebate amount by the end of each month. The Rebate amount will be paid within 5 working days.
- If you have multiple Ethereum address for market making, we will sum all the Ethereum address trading volume for rebate amount.
Why not just set the transaction fees to 0 for makers directly?
- In short: we simply can’t do this with our current settlement structure
- DDEX is a 0x relayer which runs the “matching mode”
- There are technical limitations on 0x’s matching mode which inhibit us from being able to easily identify which orders are makers vs. takers when an order is initially placed (a single order could actually be both through multiple transactions!)
- Thus we cannot account for the appropriate fee % until after the order is matched
Why provide benefits to order makers?
- Typically exchanges structure their fees to give order makers a slight benefit over order takers to encourage a healthier trading environment
- Incentivizing order making will naturally yield a more “liquid” orderbook (larger, stronger, better) — this provides a superior trading experience for all of our users
- This benefits every DDEX users!
