HP019 - Adjusting Trading Rewards


This proposal seeks to:

  • Reduce OI rewards by 50%
  • Increase volume rewards by 50%

If this proposal passes, the new trading rewards would be:

  • Open Interest Rewards: 500,000/mo (0.05%).
  • Trading Volume Rewards: 1,500,000/mo (0.15%)


Currently, Hubble splits the rewards equally between Open Interest (OI) and Volume at 0.1% per month.

Important stakeholders for the exchange and their incentives are:

  • Makers - Fees (0.075%)
  • Rate arbitrageurs - funding rate, OI rewards, volume rewards
  • Active traders - volume rewards, OI rewards

Naturally, volume rewards are lesser for rate arbitrageurs and OI rewards are lesser for active traders. Makers and the insurance fund earn the fee from active trading. A consistently higher funding rate allows traders who are running rate arbs to earn a decent yield. The only avenue for active traders to earn more, in this case, is the rewards. Therefore, it makes sense to skew trading rewards in favour of volume rather than keeping them equal for OI and volume.

  • For
  • Against
  • Neither

0 voters

1 Like

From my experience during my 55 days daily active trading on Hubble, I would like to be in a strong favor this proposal. The OI reward right now is simply too high. Since the mannet trading, 58% of my vHubble rewards come from trading volume, 42% of them is from OI (which decreasing significantly due to a 10x OI growth). While my trading volume generates 3,000$ trading fees, my OI does not contribute to protocol revenue. So, I believe by reducing OI rewards by 50% and increasing volume rewards by 50% will lead to a higher trading volume which will benefit Hubble protocol and future Hubble token holders. And this proposal will make Hubble to be a fairer platform where smaller traders can maximize their rewards without the need of a big OI.
I also think every current reward proposal should be reviewed and make a new rule for these rewards every 3 months because as the growth of Hubble these current rewards might turn out to be too rigid.