Docs/Market mechanics/Liquidity rewards
Liquidity rewards
Optional treasury-funded campaigns that reward sustained, two-sided liquidity without a token or inflationary points.
Release status#
Liquidity campaigns are an optional incentive layer funded upfront with collateral from the protocol treasury. Rewards are bounded by the campaign's funded balance and daily budget; they do not create new collateral or alter market settlement.
Campaign configuration#
| Field | Purpose |
|---|---|
| Market | The single Predistate market whose makers may qualify. |
| Start / end | The funded scoring window. |
| Daily budget | Maximum collateral allocated to one daily epoch. |
| Minimum order size | Excludes dust orders from snapshots. |
| Maximum distance | Farthest eligible price from the current midpoint. |
| Rewarded-depth cap | Maximum qualifying depth per maker on each side. |
One-minute scoring#
Only useful, balanced liquidity receives a score.
- The onchain order book is sampled once per minute.
- YES orders remain on their original side and price.
- A NO buy becomes a YES ask at
1 - NO price; a NO sell becomes a YES bid. - Qualifying depth is weighted quadratically by proximity to midpoint and capped per maker.
- A maker's snapshot score is the smaller of their bid-side and ask-side scores, requiring two-sided liquidity.
- Snapshots score zero without two eligible sides, with a crossed or excessive spread, or with midpoint outside 10-90 cents.
Daily Merkle epochs#
Valid minute scores are accumulated by maker for each campaign day. The daily budget is allocated proportionally to total score; deterministic rounding remainder goes to the highest-scoring maker, with address order as the tie-breaker. The generated Merkle root defines each maker's claim before the distributor owner publishes it.
Makers claim directly from LiquidityRewardsDistributor. Each published epoch has a 30-day claim window. After expiry, anyone may return its unclaimed collateral to treasury. Epochs can only be published after their campaign day ends, must fall inside the campaign, and cannot allocate more than the daily or funded budget. Once a campaign's unused remainder is reclaimed, no new epochs can be published.