Trader Incentives
Earn Rewards While You Trade
Traders on Lynx can earn additional rewards when trading with certain tokens as their collateral asset. These rewards are distributed via incentive campaigns hosted by partner protocols on Lynx. To check for an active incentive campaign on Lynx, go to the ‘Rewards’ tab in the Lynx app and select a specific collateral asset. The rewards page will look like this:
WFUSE: The collateral asset that must be used to qualify for rewards
Max Weekly Distribution: The amount of reward tokens being distributed during the current round
Ends in: The end date for the current round of reward distributions (any subsequent rounds start immediately once the current round ends)
Your Rewards: The estimated amount of rewards you have earned from the selected incentive campaign
Note: ‘Your Rewards’ displays an estimate of the rewards earned during the current round, as well as any unclaimed rewards from previous rounds. The exact amount of rewards earned during any given round is finalized once the round has ended. Only then, after the conclusion of the round, can rewards from that round be claimed.
Types of Rewards
There are two different ways traders can earn additional rewards. Depending on how the incentive campaign was set up, one or both methods may be available. The two ways that traders can earn are through Fee Rebates and P&L Bonuses.
Fee Rebates
Traders can be refunded up to 100% of the trading fees they have paid during a given round, or even more. Any traders opening a trade on Lynx automatically qualify for Fee Rebates (Note: Fee Rebates are on opening/closing trading fees and exclude any funding or interest payments).
Category Rewards: The amount of rewards allocated towards the current round of Fee Rebates
Total WFUSE Fees: The total amount of trading fees paid in WFUSE by all traders during the current round
Your Weekly Fees Paid: The amount of trading fees you have paid in WFUSE during the current round
Your Share of Fees Paid: Your portion of the Total WFUSE Fees paid by all traders, expressed as a percentage
Max Rebate: The maximum percentage you can earn back from your weekly fees paid during the current round
Your Rewards: The estimated amount of rewards you will earn from Fee Rebates during the current round
How it Works: Each round, Lynx monitors the total trading fees paid by all traders utilizing the selected collateral asset. At the end of the round, the category rewards are distributed pro-rata to all traders based on their share of fees paid. Traders can earn up to the Max Rebate, if one is set.
Example: Consider the scenario above where the total trading fees paid by all traders using WFUSE in the current round summed to 28.5012 WFUSE, with a specific trader contributing 26.4383 WFUSE (equivalent to 92.762% of the total fees). If 500 tokens were allocated from the Max Weekly Distribution towards Fee Rebates, the trader would be entitled to 89.303% of this amount, which equals 463.81 WFUSE. However, due to a Max Fee Rebate of 80%, the maximum this trader can earn is 80% of the 26.4383 WFUSE they paid in trading fees, resulting in 21.1507 WFUSE.
Trading P&L Bonuses
Traders compete with each other to earn additional rewards according to their Trading P&L performance, with the most successful traders earning the largest share of the prize pool. To qualify, traders must close at least one trade with positive Trading P&L during the round.
Category Rewards: The amount of rewards allocated towards the current round of Trading P&L Bonuses
Total WFUSE Positive P&L: The total amount of positive Trading P&L accumulated by all traders using WFUSE during the current round
Your Weekly Positive P&L: The amount of positive Trading P&L you have earned in WFUSE during the current round
Your Share of Positive P&L: Your portion of the Total WFUSE Positive Trading P&L accumulated by all traders, expressed as a percentage
Your Rewards: The estimated amount of rewards you will earn from Trading P&L Bonuses during the current round
How it Works: Each round, Lynx tracks the total positive Trading P&L across all traders utilizing the specified collateral asset. At the end of the round, the category rewards are distributed pro-rata to all traders based on their share of the accrued positive Trading P&L. Trades with negative Trading P&L are not taken into account and do not reduce the amount of positive Trading P&L earned during that round.
To determine if a trade has a positive or negative P&L, Lynx looks at the trade's Trading P&L: the amount earned or lost by the trade after factoring in funding and interest, but before open and close fees.
Example: Consider the scenario above where the total positive Trading P&L accumulated by all traders using WFUSE in the current round summed to 4.4771 WFUSE, with a specific trader contributing 4.4771 WFUSE (equivalent to 100% of the total Trading P&L). If 500 tokens were allocated from the Max Weekly Distribution towards Fee Rebates, the trader would be entitled to 100% of this amount, which equals 500 WFUSE.
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