> For the complete documentation index, see [llms.txt](https://docs.lighter.xyz/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.lighter.xyz/liquidity-partner-program.md).

# Liquidity Partner Program

This program will distribute rewards to market makers who provide tight, deep liquidity on the Lighter order books. Rewards are allocated through randomized snapshots of the order book. The amount of rewards to be distributed each week will be announced in advance.

#### Eligibility

* Participants must maintain an active Premium account.
* Only resting orders present on the order book at the time of each snapshot are eligible.

### How it Works

There is a single global weekly reward pool shared across all eligible assets. Each asset is assigned a weight that determines its share of the pool.

Eligible assets may be labeled as either fixed / longer-term pairs or weekly campaign pairs (see google spreadsheet link below).

Fixed / longer-term pairs are priority markets that remain eligible for rewards over a longer period. These are typically mainstream or consistently in-demand markets where stable liquidity is important. This gives liquidity providers more predictability and makes it easier to support these pairs without needing to adjust allocations every week.

Weekly campaign pairs are selected for shorter-term liquidity campaigns. These may include new launches, strategic markets, or pairs where additional liquidity is temporarily prioritized.

The requirements are visible in the spreadsheet shared below.

Assets are categorized individually, with each asset assigned specific quoting parameters based on factors such as liquidity, trading activity, volatility, strategic importance, and pair classification. As a result, eligible book sizes, spread ranges, reward weights, and campaign duration may vary from asset to asset.

#### Exponential Reward Multiplier

Rewards are calculated using an exponential reward multiplier that favors liquidity quoted closest to the top of book.

Liquidity at the best bid or best offer receives the highest multiplier. As liquidity is quoted farther away from the top of book, its multiplier decreases exponentially.

Conceptually:

$$
\text{Quote Reward} =
\text{Eligible Liquidity}
\times \text{Exponential Distance Multiplier}
\times \text{Volatility Multiplier}
$$

This design rewards market makers who post competitive liquidity near the top of the book, rather than rewarding pure depth alone. It also allows smaller liquidity providers to compete more effectively by quoting tighter, even if they cannot provide the same total book size as larger participants.

#### Volatility Multiplier

A volatility multiplier is applied to each reward period to reflect changing market conditions and quoting risk.

#### Snapshots

Order book snapshots are taken at randomized intervals, approximately every minute. At each snapshot, every eligible asset’s order book is evaluated to determine reward allocation.

For each asset at each snapshot, eligible liquidity is evaluated on both sides of the book:

Orders closest to the top of book receive the highest reward multiplier.

The multiplier decreases exponentially as orders are placed farther away from the best bid or best offer.

Eligible liquidity may be capped per asset and side based on the applicable asset-specific parameters.

A volatility multiplier is applied for the relevant reward period.

Symmetry: Half of rewards will be allocated to resting bids, and half to resting asks.

#### Results

Reward results are released weekly, on Monday, with payouts distributed in LIT.

#### Weekly Cadence

**Each week, by 17:00 UTC on Monday, Lighter will publish updated reward weights, and the total incentives pool in the spreadsheet below.** At this same time, the new weekly period starts being tracked. A new sheet (within the spreadsheet) will be added each week to enable program partners to track changes over time. Updates are set by the team.

[https://docs.google.com/spreadsheets/d/1\_Jr4C94Q-F2DsVar\_Tmc15SBGLc-lSVCjwgkQ6f\_3po](https://docs.google.com/spreadsheets/d/1_Jr4C94Q-F2DsVar_Tmc15SBGLc-lSVCjwgkQ6f_3po/edit?usp=sharing)