Overview
The LP Rewards program incentivizes providing liquidity by rewarding well-placed limit orders. These rewards promote tighter spreads, thicker order books, and a healthy marketplace. The design iterates on an industry-standard approach used by dYdX and Polymarket, with specifically tuned parameters to ensure competitiveness and fairness.Methodology
- Rewards are earned by placing limit orders within a specific spread from the market midpoint*
- The closer an order is to the midpoint and the more competitive its size, the higher the reward
- To qualify, orders must exceed the minimum size threshold set on a per-market basis
- Rewards are calculated every minute across all markets and paid out daily at 22:30 UTC
- The daily payout pays your full unpaid balance. There is no minimum payout amount, and sub-cent balances are included.
*To maintain a fair market-making experience, only limit orders that exceed the minimum shares threshold count toward the midpoint calculation.
Rewards parameters
Each market has 3 parameters that define how rewards are paid out:
These parameters are set to support positive market activity while accounting for each market’s uniqueness.
All three values are set per market and change over time. The numbers
above only illustrate the shape of the parameters, not what any market pays.
For the live, authoritative values, see the
Limitless Rewards page or the market
itself on the platform.
Bonus multiplier
Limit orders placed closer to the midpoint earn additional rewards through a bonus multiplier. The tighter your spread, the greater your share of rewards.One-sided liquidity
To promote tail-end speculation, earning from one-sided liquidity is only allowed while the odds are between 5% - 95%. This provides LPs with greater flexibility in managing their positions while still fostering a robust and efficient market structure.Time-based reward schedules
A market’s daily rewards budget can scale up or down at specific hours or days of the week. Schedules run in Eastern Time, and the active window multiplies the per-minute reward rate (for example, a 2× boost during peak hours or a 0.5× dim overnight).- By default, no schedule applies and rewards pay at the flat rate 24/7.
- A platform-wide schedule can dim rewards during low-activity windows, and it never increases a market’s daily cap.
- Individual markets can override the platform schedule to boost specific windows, within the market’s daily rewards cap.