Upgrading SDEX vs AMM rewards
Aquarius proposes a new exponential function to dynamically split AQUA rewards between SDEX market makers and AMM liquidity providers on a per-market basis. The system allocates rewards based on liquidity quality and volume, maintaining a 10% minimum floor for both venues. This aims to better incentivize market making across different asset types and market conditions.
Aquarius proposes a new mechanism for distributing AQUA rewards between SDEX market makers and AMM liquidity providers. Currently the split is 28.5% SDEX and 71.5% AMM. The exponential function model would dynamically adjust this per market based on actual liquidity near spreads. Stable and stablecoin markets would receive more SDEX rewards because they rely on discrete order-book liquidity; other markets would rebalance daily based on real conditions. A 10% minimum ensures both venues stay incentivized. The proposal results from months of community discussion and iterations led by community member Arun and the Aquarius team.
