Reward quality liquidity instead of junk liquidity on the SDEX
Aquarius proposes tightening spread requirements for SDEX liquidity provider rewards. Only offers within 1.5% of market price from either side would qualify for AQUA incentives, eliminating rewards for orders with 40%+ spreads that provide no real benefit to traders.
Current SDEX reward mechanics incentivize liquidity providers indiscriminately, paying even those posting extremely wide spreads (40%+) that do nothing for traders. Aquarius proposes narrowing the reward window to orders within 1.5% of market price on each side, aligning spread requirements with Soroban AMM fee levels. Implementation: snapshot-based measurement counts only qualifying offers when calculating reward shares. Two pricing methods are offered: use the Soroban AMM price for the pair, or calculate mid-price from the best bid-ask spread. The underlying claim: spreads beyond this threshold don't represent genuine market-making, just AQUA token farming without meaningful risk or user benefit.
