Incentives for Trading and deposit on MarginX

MarginX
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Incentives for Trading and deposit on MarginX

In light of the official launch of Marginx.io , we are proposing an incentive program to attract market makers, traders and educate new users to become familiar with MarginX.

The incentive program will be divided into 2 phases:
Phase 1: Trading, market making and deposit incentive (1 million $FX token)
Phase 2: Liquidity providing for market making （the team will make another proposal on this program in the later stage)

Phase 1 incentive programs for MarginX
Proposed Total Budget : 1,000,000 $FX (maker trade: 600k $fx ; taker trade: 200k $fx ; deposit: 200k $fx)
Proposed Duration : 100 days (it depends on the total budget)

  1. Transaction mining
    Budget : 800,000 $FX
    Duration: 100 days
    Trade on MarginX (maker or taker trade)
    Rewards will be distributed on a weekly basis

1.1 Taker trade
Total allocation: 200,000 $FX, 2,000 $FX /day
Wallet address’s daily taker volume / Total daily taker trade volume * daily taker trade incentive

For example, if user A makes $10,000 taker trade, daily taker trade is $1,000,000, daily taker trade incentive is 2,000 $FX

user A = 10,000/1,000,000 * 2,000 $FX = 20 $FX

1.2 Maker trade
Total allocation: 600,000 $FX, 6,000 $FX /day
Wallet address’s daily maker volume / Total daily maker trade volume * daily maker trade incentive

For example, if user A makes $10,000 maker trade, daily maker trade is $1,000,000, daily maker trade incentive is 6,000 $FX

user A = 10,000/1,000,000 * 6,000 $FX = 60 $FX

  1. Deposit incentive
    Budget 200,000 $FX
    Duration: 100 days, 2,000 $FX

Wallet address value / Total value on MarginX * daily deposit incentive

For example, if user A has $10,000 in his/her MarginX wallet address, and the total value (TVL) on MarginX is $1,000,000, daily deposit incentive is 2,000 $FX

user A = 10,000/1,000,000 * 2,000 $FX = 20 $FX

Remarks:

  1. Reward will be calculated on a daily basis
  2. Reward will be distributed on a weekly basis
  3. The calculation of the incentive reward shall be solely determined by the team.
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The proposal of requesting 2m $FX is up

https://starscan.io/fxcore/proposals/27

Incentive programs for MarginX
Proposed Total Budget :2,000,000 $FX 2Million (maker trade incentive 1,200,000 $FX ; taker trade incentive: 400,000 $FX ; deposit incentive: 400,000 $FX)
Proposed Duration : 100 days

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Hello Dr

I am not sure but is the Incentives competitive enough in comparison to others? Because I think this is a great opportunity for MarginX (and fx awareness) if the rewards can be a bit more enticing for a short period for enthusiasts (although versus the long term plans, having sustained users to continue utilising MX with longer periods of incentives can work great too - just a side thought).

I feel the amount required is sensible and I was expecting a bit more initially tbh.

I suppose on the other hand, the price of fx is at the lower end atm and can balance out on it’s ratio to amount of coins earned once it sits pretty.

I am optimistic and hoping in fact, that MX is the catapult or slingshot the team need for function X ecosystem in it’s entirety.

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Thanks for your comment @Superbit123

I guess the idea is the balance between the incentive and the selling pressure of $FX

The team is mindful that, compare with other projects , the incentive package of 1m $fx (around 220k usd as of now) is relatively small, and on the other hand, the trading volume of $fx is low and this might creating additional selling pressure of $fx

However, in order to attract users, especially outside of the community, the incentive has to be significant to create awareness.

I personally agree with the point ’ if the rewards can be a bit more enticing for a short period for enthusiasts’ - do you have any ballpark figure in your mind?

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Marginx support other walllet
Or just for fx wallet

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f(x)core wallet for now … and with WalletConnect, more wallets in pipeline.

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May I know for phase 1 will the market maker use their own funds to create the deep order book? because they might set losing trades making it risky.

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Interested market maker(s) shall deploy their own fund (balance sheet) to provide liquidity on MarginX, they will only get rewarded if their ‘maker’ order get executed.

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Hi.
I would double the amount needed. To support my thoughts on this;

  1. I do not think this is excessive, even if the price goes up.

  2. The opportunity outweighs the small amount required of the new 2M fx suggestion (in comparisons to CSP total) for such a potential DEX. Opportunities big as this doesn’t always come everyday.

  3. Again the opportunity outweighs any cons. So what are the cons in this scenario?

a)
The team are very experienced and knowledgeable to fall into any wasted usage of these funds. The project in it’s infant period can’t afford such mistakes (this comment should be more reassuring to community’s, at this junction…)

b.)
The worst case scenario is that you will get these funds, but not spend it all (2M). Maybe just use any unspent amounts for the other trenches needed, or contingencies.

If so for the new suggestion, then it may lead to a;
a) longer period of Incentives
b) or slightly higher incentives.
c) either way it’s a win for the whole ecosystem.
d) or maybe some portions if rewards in other tokens ie pundix.

  1. All utilisations of these funds can be made transparent in the future for communities (if necessary), which I am okay with or without it tbh [we hit 5years already, & we still here], because it’s plainly clear we’re all rooting for the success of MarginX. Having said this, 2M is great for starters, and later on as mentioned another request, perhaps for marketing or something which wasn’t disclosed to us yet. Either way that’s okay imo, because big ambitions or platforms need bigger funds imo.

-What else can these funds be used for? Or the likelihood when such an opportunity big as this has approached us.

3). Actually, these incentives can be monitored and shared with us (because its interesting to see how it plays out), and perhaps these data’s can be enlightening to show us and the team that it made the user base differences, volume, etc.

This reminds me, you can have Incentives in different periods. Maybe work better with different months of the year or something like different strategies to give out these rewards from funds.

  1. this thought now is the repeat offender - marketing, which is entailing, for the most part of the eco and various branches of PX, FX & MX. I do know there are some ideas for this. Timing is crucial esp with all these big news out there and nothing seems to happen these days…

  2. the trading is low because we haven’t had the ease of trading on exchanges. Maybe funds can be requested from egf for exchanges to accept it for faster listing. That will hit 100‰ quorum in a few hours, I reckon :sweat_smile:

MX is a new key, to open new doors to the world of Function/Pundi X eco.

Best wishes. SB

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@Superbit123 Thanks for your suggestion and comment, it is very thoughtful and detailed.

I would like to make a few points:

  1. The proposed incentive fund is to provide incentive for the 100 days, (with 2m $fx), daily incentive is 20,000 $fx

  2. Indeed, increasing to 2M $fx will make a significant impact on the marketing, incentive side, although comparatively the size of the incentive is still lower than the market average.

  3. I personally think you made a point that - selling pressure is a secondary issue, the key is how to seize this opportunity to make the pie bigger.

  4. 100% of the allocated fund will be deployed on the incentive program and the usage of fund shall open to the community.

5 2m $fx is just the beginning, the team will request for more fund in the later stage for more ‘ambitious’ plan.

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I like that market makers are responsible for their own trade skills and balance sheet.

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Howdy again, leading perp dex Dydx have removed the maker incentive and only keeping taker (note), the rationale is compelling and I seek @Danny and the team’s comment.

notes:Common

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Thanks for your comment @moleculeboost

The team is well aware of the incentive program of Dydx, reference: Trading Rewards | main

First of all, Dydx’s current incentive program is applied to all trading (both maker and taker trade) , I quote ‘based on total fees paid by a trader in a given epoch.’

Secondly, the discussion on (Common) also suggested the risk of wash / fake trading, which will have adverse effect to our new members / traders.

Thirdly, different stages shall apply different strategies. MarginX is at its initial stage and one of the few things we need to build is the market depth instead of the trading volume. Thus, we allocate more funds to incentive market maker (via maker trade)

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@Danny that makes a lot of sense, MarginX is at a growth stage.

And just to be clear, dydx is now only incentivizing taker, not NOT Open Interest which I understand as maker but MarginX will do both? I am fine with both but goot to understand if I understood what u typed.

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Thanks for the comment @moleculeboost

In light of the proposed incentive program, MarginX will incentive both ‘maker’ and ‘taker’ trade.

The team will differentiating the executed ‘order type’ : limit order or market order

At the end of the day (the incentive reward will be calculated on a daily basis) :

the trading volume of limit order / total trading volume of limit order * daily maker incentive = available maker incentive

for example
Alice makes 1,000 usdt of maker trade on the day, the total maker trade volume of the day is 10,000 usdt and the daily maker trade incentive is 100 $fx

Alice gets 10 $fx (1,000 / 10,000*100$fx)

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Howdy @Danny , thank you for being patient in explaining.

May I know when executing ‘limit order’ that is maker order, and ‘market order’ taker order?

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To clarify @moleculeboost question

In general, limit order = maker order ; market order = taker order

However, there are few possible scenarios that limit order shall be treated as taker order

For example, user places a limit order while the market is moving

The market price is $103 and the best bid (buy side order book) is $100; and the best ask (sell side order book) is $105. Alice places a limit buy order at $101, at the same time, the market moves down to $100 - hence Alice executed the order at $100 (instead of $101) as market order.

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in general:

a MAKER order is an order that “makes” the book. It’s an order that doesn’t execute directly it will buy or sell at a specific price/trigger. This Kind of order is ADDING liquidity to the trading pair.

a TAKER order is an order that “takes” out of the book. It’s an order that will execute directly it will buy or sell directly at market price. This Kind of order is REMOVING liquidity from the trading pair.

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Thanks @Danny @Alchimist , my appreciation.

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I am try to use marginx now. Is something do i wrong?
I have 60 fx but balance show 0. And i can not take a position . Do i need usdt ?