🎺Instruments Allocation

Rule for instrument allocation

A points pool corresponds to :

• A set of instruments with comparable liquidity and of the same asset type (e.g. tier 1 perpetual future pool for BTC-USD-PERP and ETH-USD-PERP points)

• A points program (i.e. Maker vs Fee)

$$\begin{align*}\small\text{Point Share of }&\text{Instrument}~I_i=\frac{\text{Base Allocation}}{\text{Number of instruments in the pool}}\\ \\&+(1-\text{Base Allocation})*\frac{\text{Total Instrument }I_j \text{ Score}}{\text{Total Pool Score}} \end{align*}$$

• The first term in the point share formula (i.e. $\frac{\text{Base Allocation}}{\text{Number of instruments in the pool}}$) means that a base allocation is evenly distributed across all instruments in the pool. This ensures a minimum allocation for all instruments (including newly listed ones where liquidity is needed).

• In the second term of point formula, the remaining pool supply (i.e. )is allocated depending on the point share of each instrument with in a pool (e.g. Tier 1 or Tier 2)

Example

• 100 points are allocated to the Tier 1 trading point pool (BTC, ETH and SOL perpetuals)

  • Maker Program : 30 points

  • Fee Program : 70 points

Next, points are sub-allocated to the Maker Program (30 points) and Fee Program (70 points) across each instrument in the pool (e.g. BTC/ETH/SOL perpetuals). Sub-allocation occurs separately for each program following the same allocation logic :

• Total Score of BTC-USD-PERP : $\small\text{Total Score(BTC-USD-PERP)}=100,000~\text{USDC}$

• Total Score of ETH-USD-PERP : $\small\text{Total Score(ETH-USD-PERP)}=40,000~\text{USDC}$

• Total Score of SOL-USD-PERP : $\small\text{Total Score(SOL-USD-PERP)}=20,000~\text{USDC}$

• $\small\text{Base Allocation}=30\%$

30% of the pool is evenly distributed between BTC-USD-PERP and ETH-USD-PERP and SOL-USD-PERP

70% of the pool is allocated proportionally to the instrument score relative to the total pool score where the instrument score is the total score of all wallets for that specific instrument

$\text{Total Score}~(I_k)=\sum\limits_{\text{Wallet }W_i}\text{Wallet}~W_i~\text{Score on Instrument}~I_k$

and Total Pool Score is : $\sum\limits_{\text{Instrument }I_k}\text{Total Score}~(I_k)$

$$\small\text{Point Share of BTC-USD-PERP}=30\%*\frac{1}{3}+70\%*\frac{100,000}{100'000+40,000+20,000}\approx10\%+43.75\%=~53.75\%$$

$$\small\text{Point Share of ETH-USD-PERP}=30\%*\frac{1}{3}+60\%*\frac{40,000}{100'000+40,000+20,000}\approx10\%+17\%=~27.50\%$$

$$\small\text{Point Share of SOL-USD-PERP}=30\%*\frac{1}{3}+70\%*\frac{20,000}{100'000+40,000+20,000}\approx10\%+8.75\%=~18.75\%$$

Note: “Total Score” above references Maker Score when allocating the Maker Program points and Fee Score when allocating the Fee Program points.

The chart below shows the points share in this example for a given instrument $I_j$ depending on its score share, i.e. $\frac{\text{Total Score}(I_j)}{\text{Total Score}(\text{BTC-USD-PERP})+\text{Total Score}(\text{ETH-USD-PERP})+\text{Total Score}(\text{SOL-USD-PERP})}$