Reward Mechanics

Every new market requires deep liquidity. Monarch's Marina module enables deployers add incentives or use a portion of the market's generated fees to create incentive programs for market makers and traders, rewarding them for providing deep, tight orderbooks and high trading activity.

How rewards work

At the end of each reward epoch (e.g. every week), the total MM incentive pool for a given market is distributed to all eligible market makers.

Your share of the pool is calculated pro-rata based on your Unified Performance Score for that epoch.

This score creates a competitive environment that rewards MMs for providing consistent and deep liquidity.

Unified Performance Score

Your score for each epoch is calculated from two components:

Component	Parameter	What it measures
Quoting Score	Wquote	Your average quoted depth per time period, with a multiplier for tighter quotes - the closer you quote to mid-price, the higher your score
Fill Score	Wfill	Your total filled volume per time period - the more your quotes get hit, the higher your score

Unified Score = (W_quote x Quoting Score) + (W_fill x Fill Score)

The quoting and fill weights (W_quote and W_fill) are parameters set per campaign that scale the relative importance of each component. Deployers can tune these to incentivise the behaviour their market needs most - deeper quoting or more active trading.

Quoting Score

Your Quoting Score reflects how much depth you provide and how tight your quotes are:

• Average quoted depth is measured across the epoch - consistent quoting earns more than sporadic bursts
• Tighter quotes earn a multiplier - quotes closer to mid-price are weighted more heavily than quotes further out
• This rewards MMs who provide real, accessible liquidity at competitive prices

Fill Score

Your Fill Score reflects how much of your liquidity actually gets traded:

• Total filled volume is measured across the epoch
• Makers whose quotes are tight enough to attract taker flow earn more
• This rewards MMs who make the market genuinely tradeable

Claiming rewards

Rewards are claimable on-chain at app.monarch.fast/marina. Connect your wallet and check eligibility after each epoch.