MM pool for fixed spreads, MM competitions

Thanks for the feedback @spacemonkey - there is the 12.5k group which should be easier to maintain from a risk perspective. I expect that after the first 4 weeks we’ll see the success /failure of the above and amend → This may result in a larger spreads for the next iteration as it is ultimately dependent on Solana issues, pyth lag & also on other markets (i.e. if FTX spread is 8 bps, 10 bps on Mango would be unreasonable. Currently FTX is 5 bps for 50k)

We’d also like to participate.

I think the initative is great! However with the current network issues maintaining those spreads won’t be easy. Interested to see how it’ll work out for the first 4 weeks.

1 Like

I would be very happy to participate in this new program. Seems way better than the MNGO mining rewards we had on chain. Personally i will try to hit the $50k level for BTC, ETH, SOL, AVAX, LUNA.
How often will the payouts be made ?
/tomatosss

Hi @tomatosss thanks for your willingness to participate, to reduce friction I’m going to have payouts on a weekly schedule. In my experience a month is too long, bi-weekly may be preferable to weekly but weekly allows for 4 attempts in a month at the rewards - which is better for everyone.

Will these payouts be made from the dao or could we have a trusted member/members of the Mango team manage a regular or multisig wallet(which could recieve funds from the dao every month or so) to reduce waiting for proposals to go through every week in order to recieve your payout?

GM will make the payouts every week under DAO/core team scrutiny & tx’s tracked on public forum, no need for multiple DAO votes.

Streamlining is the goal

As discussed on Dev call yesterday, we are going to limit the fixed spreads program and the backstop liquidity to pubkey’s that sign up (5 max for backstop & 1 spot is already taken) - in the essence of keeping it sustainable and being able to safely estimate the correct max budget. Please post your pubkeys here that you will be using for the program or send me a dm so that I have a final list. Deadline will be Monday. GM will also participate in backstop but we will provide backstop liquidity outside of the program to leave an extra spot open.

For the market share pool → this doesn’t require sign up.

2 Likes

The program for V1.0 has been finalized with all participating pubkeys. See attached sheet with keys.

Couple of final points:

  1. For the market share - if wash trading / self matching is observed (mangolorians will analyse trade data) then your pubkey will be disqualified
  2. Participation in V2.0 will require at least 1% maker market share for a pubkey across all volume or proof of trading on other venues at equivalent size.
  3. Changes to spreads / rewards can be made every 2 weeks and are fixed for 2 weeks, so that we can accurately shape the program to the needs of mango
  4. Payouts are weekly and will be processed by a separate DAO requiring multi-sig approval based on a dashboard that Mangolorians will develop (with downloadable data used to create the dash): https://mangolorians.com/market_maker_competitions - this will be a 250k USD * 2 = 500k USDC vault vote.
1 Like

How many weeks will the $500k last?

Should be 8 weeks, but expecting to come in under the budget - which would mean likely 8 to 12 weeks.

1 Like

Results for the first ‘epoch’ are finalised - I’ve added a TPS based reduction to uptimes after discussion with Triton and a few MM’s, and we’ve removed the period where Solana was down. The TPS based reduction is a ratio of slots where tps is less than 1250, for reference 2000+ is healthy/normal. Over the first ‘epoch’ there was =154097 slots below 1250 TPS out of 505354 slots ( 30.49% adjustment). This is based on a near impossibility to maintain spreads given Solana’s issues - something that we can’t tax participating pubkeys on. (This value may change depending on future discussions / group outcomes)

Slots:

First ‘epoch’:

Volume based pool (>10% market share per wallet on mango pubkeys)

This brings the 1st weeks total payout to: $29,125.0

Let’s hope that the next few weeks have better TPS so that takers can consume this liquidity (which is the best Mango has ever had)

1 Like

Second epoch results below:

TPS adjustment used was 750 (50079 out of 558359 slots, so an adjustment of 8.97%) on the bright side the majority of the week was at a relatively healthy TPS (avg of 1837)

Slots:

Second ‘epoch’:

Volume based pool (>10% market share per wallet on mango pubkeys)

This brings the 2nd week payout to: $21,218.8

As discussed on dev call, we’ll have a mid-week shuffle up as no one is going to hit up times and we are in need of some quality liquidity.

As of 12 UTC May 13 - all participating pubkeys can partake in the following new temporary buckets (limited to one bucket on 30 bps & one 50 bps):

25k bid/ask, 80% uptime until Tuesday 12 UTC = $7,500 (payout weighting if single pair is hit 2/5 = sol, 1/5 for the rest)
30 bps on SOL-perp, AVAX-perp
20 bps on BTC-perp, ETH-perp

12.5k bid/ask, 82.5% uptime until Tuesday 12 UTC = $3750 (payout weighting if single pair is hit 2/5 = sol, 1/5 for the rest)
30 bps on SOL-perp, AVAX-perp
20 bps on BTC-perp, ETH-perp

50k bid/ask, 80% uptime until Tuesday 12 UTC = $500
50 bps on SOL-perp, AVAX-perp, BTC-perp, ETH-perp
75 bps on remaining pairs - LUNA

1 Like

Epoch 3 - even with TPS adjustments no MM was able to hit the uptimes, this includes the mid-week program that was live for the end of the week. Market vol makes it very difficult + LUNA disaster - should be a better next few weeks.

The only payouts are on the volume market share pool:

The high payout to HSH should stimulate other MM’s to strive for the 10% tier, considering moving this to 5% for the next month. - Will update.

1 Like

Epoch 4 here - missed the post but payouts were made last week, epoch 5 coming shortly:

There were no fixed spreads hit - for another week. (MS was also moved to 5% instead of 10% on the maker side)

Here’s epoch 5 - note that market makers with a volume share >= 5% qualify now.

Payouts upcoming.

Hi folks - will be sunsetting the fixed spreads competition and rethinking how best to maintain liquidity until V4. With recent market turbulence & consistent unworthiness of TPS it’s not feasible for any maker to commit to these and as such going to take it down and bring something different to market over the following weeks.

Liquidity is currently stable.

Epoch 6 payouts below:

1 Like

Here are the results for the 8th and last epoch of the program’s trial period.

The vote to rewards the winners for this week has already passed.

MM program trial is wrapped up now and we will run with no rewards for the next four weeks.