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Earning Tokens

Here's an equation

Rewardi=TotalFeesRewardAssetPriceRewardRateTraderScorein=1mTraderScorenReward_i = \frac{TotalFees}{RewardAssetPrice} * RewardRate * \frac{TraderScore_i}{\sum_{n=1}^{m} TraderScore_n}

We should be mostly concerned with the left-hand side as this is effectively the reward you are to receive for your trading. The factors affecting your reward are represented by the terms in the right-hand side expression and we will be also considering these as we go along.

What's a Reward?

Because your trading supplies liquidity to the users, the more positions you open, the more valuable it's getting to be for them. Besides, there's a fee for each position to be opened or increased: to trade an asset incurs 1% out of the contract value. This fee supports the insurance fund and staking.

It, therefore, comes as a fair and reasonable move to inspire a trader towards opening more positons in every pair's market available on Tsunami.

The incentive we devised for you is a certain portion of tokens (such as TSN tokens) distributed across the traders so that you will have your tokens share based on your transactions number and volume for each market pair.

How much do I get?

Your fees and liquidity supply being the major contributing factors, your can increase your reward by increasing:

  • The number of positions you have opened or increased. Each 1% of the commission you pay adds up to the TotalFees term of the expression, thus increasing the Reward volume.
  • The size of the position. The average notional value of all the positions kept open within the epoch is just as important. Naturally, your open positions are the source of liquidity, thus ensuring a robust marketplace, high trading activity and competitive prices.

OK, now that we have defined the reward increasing ways within your powers, let's consider the external agencies influencing the reward.

First and foremost, here's the percentage of the total fees to be given away. Depending on the market conditions, this value can range from, say, 0.7 to 2. The latter means a pay-off of 200% of the total amount you have been charged as commission. That's a nice refund to have, but the 70% is not bad as well. If you look at the equation again, here's the RewardRate term reflecting this share of fees.

Further on, bonus tokens are nominated in USDN. Therefore, to have the actual amount of the total fees in USDN, we should divide the amount of the total fees by the current rate of a token to USDN, see the RewardAssetPrice in the equation.

In fact, you can skip most of the above and just have a look at the following tooltip over an asset name in the Trade section, such as:

Seeing that 400% looks like a generous prize, you can decide over a trading asset real quick.

Finally, how can I have my hard-earned reward?

You have been trading extensively and now it's time to collect tokens amassed over the time:

  1. Open the Reward tab.

  2. There will be the following information presented there:

    ActiveThe total amount of the tokens you have received so far.
    PendingThe amount of tokens you should be rewarded with by the end of the epoch. They are literally pending the epoch
    AvailableThe reward generated within one or more epoch preceding the current one that you haven't claimed
  3. Press Claim.

    The Available counts will be reversed to zero. Your Active balance will be increased accordingly.

    Please note, that this is Available tokens that you can claim.

Congrats. You have had a good ride on the tsunami waves.