Reduce the threshold for receiving liquidity provider rewards from 5% to a lower %
AI summary
This proposal asks dYdX token holders to decide on lowering the minimum trading volume percentage required for market makers (MMs) to earn liquidity provider rewards. Currently, MMs must contribute at least 5% of the total trading volume to qualify for these rewards. The proposal offers choices to reduce this threshold to either 2.5% or 1.0%, or to keep it at the current 5%.
If the threshold is lowered, more market makers could qualify for rewards, potentially increasing competition and liquidity on the dYdX platform. This could benefit traders through tighter spreads and better pricing, while potentially diluting the rewards received by the largest market makers.
Voting results
🐳 Whale votes
0 votes > 5% VPFull proposal
In reference to https://forums.dydx.community/proposal/discussion/1805-reduce-market-maker-incentives/, what should be the volume threshold % for MMs to qualify to receive liquidity provider rewards on dYdX?