Trade to Earn: Fuse Network x Lynx Incentive Program

Introducing Fuse Network’s pilot incentive program — a two-week rewards initiative run in collaboration with Lynx, granting a total of 15,000 $WFUSE tokens as incentives to Lynx traders. This pilot program aims to amplify the amount of $WFUSE trading fees being generated over the next two weeks while boosting the usage of $WFUSE within the derivative trading space!

Starting today — May 15, 2024 at 00:00 UTC, and until May 27, 2024 at 00:00 UTC, $WFUSE tokens can be earned by traders actively participating within the Lynx ecosystem, spanning various trade-to-earn categories!

Let’s delve into what Fuse Network’s two-week incentive program entails and how you can partake in this exciting opportunity to earn rewards!

Token Allocation

A total of 15,000 $WFUSE tokens will be rewarded to traders using $WFUSE as their collateral asset on Lynx. The rewards will incentivize organic trading activity from users, including high-volume and successful trading.

The distribution of rewards aims to support longstanding Lynx traders while simultaneously attracting fresh participants, fostering growth within the Lynx and Fuse ecosystems.

Reward Structure

The distribution of $WFUSE tokens is based on a system that encourages high-volume trading (fees paid) and positive trade PnL (successful traders).

Here’s a breakdown of how rewards are earned and distributed:

• Trading Fee Rebates: Any trade that is opened/closed on Lynx during the incentive program automatically qualifies for a trading fee rebate. Traders can get refunded up to 80% of the trading fees they pay during the incentive program. By using $WFUSE to offset trade fees, the more you trade, the more $WFUSE you earn!
  Note: Fee Rewards are on opening/closing fees and exclude any fees paid to funding or interest rates.
• Positive PnL Rewards: Traders are rewarded for closing successful trades on Lynx. At the end of the incentive program, the amount of tokens allocated to Positive PnL Rewards are distributed pro-rata to all traders based on their share of the total accrued positive P&L.
  Note: These rewards are based on Positive PnL, not Net PnL. Trades with negative P&L are therefore not taken into account and do not reduce the amount of positive P&L accrued.

Reward Weightings

Each week, a new prize pool will be up for grabs and all stats from the previous week will be reset, giving all participants an even playing ground. The token allocation will be distributed accordingly:

Week 1 (May 15-May 20)

• Trading Fee Rebates: 1,000 $WFUSE (20% of weekly prize pool)
• Positive PnL Rewards: 4,000 $WFUSE (80% of weekly prize pool)

Week 2 (May 20-May 27)

• Trading Fee Rebates: 2,000 $WFUSE (20% of weekly prize pool)
• Positive PnL Rewards: 8,000 $WFUSE (80% of weekly prize pool)

Note: If the total rebates exceed the amount of tokens allocated towards it that week, the tokens will be distributed pro-rata based on the amount of trading fees each trader paid. For example, if 3,000 $WFUSE were paid in trading fees by all traders, someone who individually paid 1,500 $WFUSE in trading fees (50% of the total) would earn 50% of the token allocation for that week.

Claiming Your Rewards

Throughout the week, the estimated amount of rewards earned by any one trader fluctuates based on the performance of all participants. The exact amount of rewards earned by each participant is determined at the end of the incentive week. Traders can claim their rewards only once the incentive week concludes. However, users can monitor the estimated rewards they will earn at any given time on the ‘Rewards’ page within the app.

To learn more about trading incentives on Lynx, refer to the dedicated section in the Lynx documentation:
https://lynx-finance.gitbook.io/lynx-finance/for-users/traders/trader-incentives

And remember — stay engaged on the Lynx Discord and Twitter for the latest updates and announcements.