By
Bhushan Akolkar
April 25th, 2024
OptionRoom’s fixed protocol rewards are distributed on the basis of users’ levels of activity across the protocol.
At OptionRoom, the team always believed in rewarding the users who participate in the project’s ecosystem; not only does this encourage and incentivize interaction with the protocol, but it makes a tangible and positive contribution towards the agenda of fostering adoption for prediction markets and decentralized finance as a whole.
Because of this, OptionRoom was founded with the vision of offering a rewards structure that is unrivaled throughout the DeFi forecast protocol space. This article provides an overview of those rewards and gives you all the info you need to start benefiting from our ethos of incentivization.
Fixed Protocol Rewards
OptionRoom’s fixed protocol rewards are distributed on the basis of users’ levels of activity across the protocol; these are daily distributions, for which we’ve set aside substantial amounts of $ROOM tokens. The breakdown of these distributions follows below, along with info around how you can start earning:
- Trading Rewards: $3333 in ROOM tokens per day have been set aside for this, and will be distributed among the users who have traded on the OptionRoom platform the most that day, based on their share of the volume.
- Market Validation: $1666 in ROOM tokens per day have been set aside, and will be distributed among users who vote on market validity, based on their voting power.
- Market Resolution: $3333 in ROOM tokens per day have been set aside, and will be distributed among the users who vote on market outcomes, based on their voting power.
To benefit from these significant rewards, users can head over to the OptionRoom dApp and start Trading, Validating, and Resolving the innovative forecast markets.
N.B: There’s a floor price for these reward calculations which is set at $0.25; if the price of $ROOM falls below this, rewards will decrease slightly
Volume-Based Rewards
Our volume-based rewards are distributed to users who create markets on the OptionRoom platform, and to users to provide liquidity for those markets. A breakdown of the significant rewards available to market creators and LPs is provided below:
- Market Creation: 0.1% of the whole market volume is given to the user who creates that market.
- Liquidity Provision: 1.5% of the whole market volume is given to liquidity providers based on their share of the liquidity for the market.
To create markets on the OptionRoom platform, and to start reaping the lucrative benefits of being a market creator, head over to the Markets section of the OptionRoom platform, you can click on the “Create New” tab and then follow the instructions on the next page.
To provide liquidity to the markets on the OptionRoom platform, click on any given market on the Markets page, then look to the “Liquidity” tab on the right hand side of the page and approve the ability to provide liquidity by clicking the link, which will trigger MetaMask to open:
After this, you can simply click “Add Liquidity” in the Liquidity tab and enter how much you would like to provide to the market. Then it is possible to begin earning the Liquidity Provision reward.
N.B: There is a Protocol Fee of 0.4% which is applied to the volume of markets, and which is sent to the reward pool to facilitate the distribution of the rewards.