Update SpreadWeight Calculation for SDEX Rewards
Aquarius governance proposal 115 aims to improve SDEX liquidity by adjusting the SpreadWeight formula's exponent from 8 to 69. The change concentrates rewards within the first ~2% of the order book, encouraging tighter spreads and higher-quality market-making.
Aquarius governance proposal 115 proposes updating the SpreadWeight calculation in the SDEX rewards formula to better incentivize quality liquidity provision. The change increases the formula's exponent from 8 to 69, concentrating nearly all rewards within ~2% of the order book spread. This heavily favors best-priced orders and aligns incentives with active traders. The proposal builds on lessons from two prior governance attempts (proposals 101 and 102) and incorporates community feedback. If passed, the change will shift rewards from distant orders to those near the market price, improving overall SDEX efficiency and liquidity quality.
