What is the Market Maker Program
The Market Maker program is one of theBluefin Rewards Programs that incentivizes deep liquidity, and good top-of-book spreads. It distributes BLUE rewards from the Maker Reward Pool (MRP). The MRP holds 10% of the BLUE supply, to be distributed over five years. The rewards are distributed after the end of each 14-day epoch.
Additionally for participating in Market Maker Program on Bluefin-v2 (Sui), makers will also earn Sui tokens based on SUI Tokens pool (STP) that will change for every cycle as determined by the Sui Foundation and 25% of the STP will be allocated for Market Maker Program.
Who is eligible for the Market Maker Program
The whitelisted market makers maintain a minimum depth of liquidity within a certain spread. To follow more about the criteria, read here.
How does the Market Maker Program Work
The Distribution of Maker BLUE rewards is based on a scoring function that prioritizes uptime, depth, and maker volume contributed to each market in the epoch.
At a randomized time during each 1-minute intervalka distance-discounted value (DDV) function is evaluated for each market maker i in market m.
Then, the score of Maker i in market m is calculated as follows
the BLUE rewards from the Maker Rewards Pool towards the maker for each market are calculated according to the formula.
Lastly, the Sui Token rewards from the Sui Tokens Pool towards the maker for each market are calculated according to the formula.
Where
MRP_m - Maker Reward Pool for market m
STP_m - Sui Token Pool for market m
Score_{i,m} - Score of market maker i in market m from the Scoring Function
∑Score_{i,m} - Sum over all qualified market makers’ scores in the market m
To follow more about the formulae, read here.