Market Making Incentive Program — earn 12.6% annual interest
The benefit to become a Market Maker on Jelly
The document introduces a new reward mechanism for the JellySwap liquidity providers.
The aim is to aggregate liquidity into the following trading pairs:
BTC<>ETH, BTC<>USDC, ETH<>USDC, BTC<>DAI
Unlike Uniswap, our Market Making strategy is flexible and every liquidity provider is free to provide liquidity on only one asset. Also, portfolio rebalancing is available by default. For instance, a potential market maker can provide liquidity only on BTC and rebalance on Binance.
The incentive:
Every market maker will receive 1% monthly interest (approx. 12.6% annual interest) of the total amount of liquidity he has provided to Jelly. The incentive will be paid at the end of each month as long as the assets have been kept available to Butler for the whole period. This percentage is additional to the profit he receives from the price spreads. For example, if you provide $1000 liquidity to Jelly for the whole month, you will be paid $10 additional profit at the end of the month on top of the gains you’ve made from the separate trades.
Important:
Jelly will support this 1% monthly interest for each market maker as long as the total liquidity provided to the platform remains up to $200k. If this amount is being exceeded at some point in time, the % will be readjusted.
The duration of the program will be 3 months starting from the end of April (stay tuned for the exact date), but it may be extended if we see good results and both takers and Butler operators are satisfied with the service.
Thus every Market Maker is guaranteed to be paid at least 3 times (at the end of each month) as long as he has kept his assets available to Butler during the month.
If someone gets caught not following the rules, he may be disqualified from the incentive program.
The funds for this incentive program are coming straight from our team’s budget.
Rules for market maker participation in the Incentive Program:
- to setup Butler on your machine/cloud
Windows: https://github.com/jelly-swap/butler-electron/releases/download/v0.0.2/Jelly-Butler-Setup-0.0.2.exe…
Mac: https://github.com/jelly-swap/butler-electron/releases/download/v0.0.2/Jelly.Butler-0.0.2.dmg…
Linux:https://github.com/jelly-swap/jelly-butler-beta - to provide a minimum of $500 liquidity
- to keep the Butler software up and running during the whole month. Real-time insights about liquidity and providers can be tracked here https://stats.jelly.market/
- to set a reasonable price spread. Unlike Uniswap, providers on Jelly can set their own price and price slippage. However, Takers always receive the best one, so make sure to set a desirable price. We propose the following spread: ETH<>BTC 0.5%, ETH<>USDC 0.2%, BTC<>USDC 0.3%, BTC<>DAI 0.3%.
- To register for the program fill in this short form — the approximate liquidity that you want to provide during the period, on which pairs, and your Butler Node name (it is not associated with your real identity, therefore you can keep your privacy)
- For any technical difficulties, problems with setup or other questions join these groups:
discord: https://discordapp.com/invite/C9mYrWM
telegram: https://t.me/jelly_swap
The risks:
The Market Making process has some risks. Please read them here in advance.
For more information about Jelly:
Landing page: https://jelly.market/
App: https://app.jelly.market/swap
Whitepaper: https://jelly.market/documents/Jelly-Swap-Ecosystem.pdf
Github: https://github.com/jelly-swap
Twitter: https://twitter.com/jelly_swap
Telegram: https://t.me/jelly_swap
