RWA LP Tokens, Market Makers, & Trading Competitions
RWA LP Tokens
The incentivization of RWA LP token holders is not a default feature of the OAE economy. Instead, the Xend Finance team will announce specific campaigns aimed at bolstering the liquidity and trading depth of RWA tokens as necessary. Without active campaigns, RWA LP tokens will not be eligible for staking in the vault.
Example
An example of a temporary RWA LP incentivisation campaign could be a time-limited incentives for RWA/WETH LP token holders on the Arbitrum network, offering twice as high rewards for the staked RWA/WETH LP tokens, compared to RWA staking. To be eligible for RWA/WETH LP staking, token holders would need:
Deposit minimal, specific amount of LP tokens
Commit to a lockup period of at least 6 months for deposited LP tokens.
Market Makers
In addition to RWA LP token holder incentives, Xend Finance may introduce periodic campaigns for market makers who contribute to trading depth by placing limit buy and sell orders on the Xend Exchange. These campaigns will detail:
Required order sizes.
Specific price ranges for orders.
Potential for exclusive, time-limited opportunities to place orders at prices beyond the current highest or lowest market rates.
Potential requirement for ‘order freeze’ i.e. placing buy and sell orders without the possibility to cancel these orders unless they are filled, or accepting cancellation fees.
This approach aims to democratize the role of traditional order book market making, extending it to a wider community. Similar to RWA LP tokens, these incentivization policies will be campaign-based and not automatically integrated into the OAE economy. If incentivized, order book market makers will:
Receive RWA rewards
Participate in trading volume based revenue based on given revenue split rate
Trading Competitions
Based on prevailing needs, Xend Finance may also host seasonal trading competitions. Participants with the highest:
RWA tokens trading volumes
AssetChain / XendConnect RWA transaction fees volumes
Will get the opportunity to earn additional RWA incentives, fostering an active and engaged trading environment.
RWA Incentives - Visual Summary
Please refer to the chart below providing a comprehensive summary of how RWA incentives work within the OAE ecosystem.
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