entoni_07

There’s been a new noise in the building. Management has been told someone is working on it.

Early Access applications are now open. 🏝️ 🔗 computersrh.xyz/ Fill out the form to get access to ComputersRh 24 hours before the public launch. You’ll also be able to create your own referral link and earn 5% of the in-game earnings of every player you invite.

Our Season 0 retro points dropped last night. A total of 1.6M points were allocated to the early users of the venue! While some users are stoked with the outcome, others received below their expectations. I suspect our model differs from most venues, so a clarification is warranted. As a product builder I like to ship incrementally, test features, iterate and adapt. You can't do that with a drop like this. A large chunk total allocation goes out in one shot, you get one chance to set the incentive structure for everything that follows. So rather than looking at how others did it, we took a first-principles approach. Retro allocation Our goal was to ensure a smooth transition between the seasons while giving an increased boost to early users given they participated on the venue when it was less mature. We landed on 1.6M points directed to the retro drop followed by a 200k weekly emission for season 1. Given S0 had a $47M daily average, and we’re now tracking for a ~$98M daily average during the first week of S1, meaning S0 traders received a 40% bonus on pts-per-volume relative to S1 so far. Depending on the length of the program, we expect this will be 15-20% of the total points allocation. We checked this number against other programs. Our pre-season was 12 weeks, relative to competitors this was generous. We felt this was a good way to reward the early users. Retro points model So what are the goals of the retro drop? Here’s what we prioritised: - Genuine traders, the kind we want on the venue regardless of points - Reward genuine economic spend - Reward earlier users for trading on a less mature venue - Reward retention and encourage more of it Now I can’t share too many specifics because we intend to continue using a similar model, albeit with tweaks and different weights and boosts, but I’ll share enough to add clarity to our approach. The primary contributors to the model are: - Trading & Liquidation Fees: What the users spent on the venue - Slippage: Rewards high value whale takers who provide good flow to the exchange. - Maker Adverse Selection: Makers who were adversely selected actually got paid back on it - OI Carry: Cost-of-capital to hold market exposure on the venue Additional contributors include a retention boost and user segmentation. Referrals follow the same logic. If you refer someone, you earn 10% of the points they generate, not their raw volume. They keep every point they earn, and you earn an additional 10% alongside them. Retention The retention boost is simple. The more you use the product, and the longer you have used it, the more boost you receive, and the more you will continue to receive as season 1 continues. Slippage Traders who are willing to put large orders directly into the book create opportunity for market makers, but also lead to skew in the book, which in turn attracts more sophisticated traders, like systematic traders and funding-rate arbitragers. This diverse user base is what creates a really healthy venue. Additionally, we found this rewarded the most active click traders, in particular scalpers, swing traders, momentum traders and traders who put large orders directly into the book. This cohort is a priority. Note: Slippage is potentially gameable so we’re quite cautious about it. Per-week distribution We decided against a fixed-weekly allocation. Why? During Season 0 the daily volume ranged from $10M per day to . Given the variance in activity week-to-week, a fixed-weekly distribution would lead to very large outliers, leading to grossly underpaying and overpaying for the same activity. Rather, we boosted the early traders relative to their baseline. Week 1 starting with the largest multiplier, linearly declining to no multiplier for the last week. Why have users received vastly different drops based relative to their volume? Volume is considered, but only through fees and other metrics. Consider two users. Fred, a swing trader who puts larger taker orders in the book, vs an algo market maker, John. Fred’s costs will be fees (3bps taker) and slippage. Depending on how large the order is and how thin the books are, the cost of slippage can vary greatly. This is a real cost Fred has to pay to participate on the venue. John’s costs, however, will be a 1bps maker fee plus any adverse selection they experience by holding limit orders on the book. The best measure of adverse selection is markouts, you essentially look at how bad your execution is relative to the price in a short period of time. Negative maker markouts capture genuine economic contribution to the venue, but they are much smaller than slippage on aggregate. As a result, Fred's cost will often be over 4x John's per unit volume. Concentration The top 100 HL traders generate ~35% of fees, top 1,000 users generate ~70%. That reflects the healthiest market structure among perps DEXs. The fact is, perpetual exchanges are concentrated, and RISEx is no exception. We took measures to reduce the concentration and flatten out the distribution. However, this increases the sybil attack surface, so it’s difficult to do well. Additionally, RISEx has one big benefit here, we have one primary market maker, the XLP vault, which receives no points for trading activity. XLP is almost 50% of the volume on the venue and received zero points for trading. The Genesis Pool The Genesis Pool is a 100k-point pool reserved exclusively for season 0 traders and will be distributed over the first 4 weeks of Season 1 (In addition to the 200k weekly Season 1 drops) Genesis Traders who stay active on the venue will earn from the pool. Distribution is weighted by activity and skewed toward the earliest traders. This is a way for us to reward the early users that continue trading on the venue and reinforcing retention What next? Season 0 laid the scaffolding and rewarded the users who helped us get here. Season 1 is about building a world class exchange, realising the vision of atomic composability and unlocking a new wave of DeFi. We’re optimising for quality traders, deeper books and a healthy venue. Season 1 is live, the genesis pool is running. See you in the books.