Vessel Mileage for Liquidity Providing

How to Earn?

Vessel will take one random snapshot of the orderbook every 5 minutes and distribute rewards based on that snapshot. Users providing liquidity within reward price range will receive Vessel Mileage. The more liquidity provided, the more Vessel Mileage collected.

Reward Spread Ratio $R$ for Trading Pairs

Reward Price Range

Note: Actual reward ranges may vary based on dynamic market conditions. Please stay updated with the latest information in our community.

Adding Liquidity to AMM Pool

• Open Voyage Page or Pool Page and start adding liquidity.

• Select the trading pair you wish to add liquidity.

• Confirm the price range and amount you want to provide as liquidity.

• Your liquidity will be added to the AMM pool, and you will start earning Vessel Mileage based on the effective quantity within the reward price range.

Referral Program

• Invite friends to join as voyagers, and when they earn Vessel Mileage by adding liquidity to the AMM pool, you'll receive an extra 16% Vessel Mileage bonus as the inviter. (Learn more about Referral Coins )

What is Navigator Boost?

Users ranking high on the leaderboard will receive additional boost. The leaderboard ranks users based on the total Vessel Mileage obtained in the last 24 hours, including both self-provided liquidity and transferred mileage from invited users. The boost for the leaderboard are as follows:

Navigator Leaderboard Rank	Boost
1-10	2.5 x
11-20	2 x
21-50	1.5 x
51-100	1.2 x
100+	1 x

What is Pool Boost?

Vessel will provide boost rewards for different pools based on market conditions and promotional plans. Voyagers can choose to participate in pools with higher boost.

Reward Calculation

Effective Quantity Q for Rewards

$$P_m = (A_1 + B_1)/2$$

$$Price Range = [P_m *(1-R), P_m*(1+R)]$$

$$Q = min(Q_a, Q_b)$$

Understanding the parameters

• $A_1$: The lowest asking prices available in the orderbook.

• $B_1$: The highest bidding prices available in the orderbook.

• $P_m$: The average price derived from the best bid price $B_1$ and ask price $A_1$. It establishes the midpoint for the reward price range.

• $R$: The spread ratio within which liquidity provision qualifies for Vessel rewards. It varies for each trading pair.

• $Price Range$: The acceptable range around the market price within which liquidity provision qualifies for rewards.

• $Q_a$: This represents the total amount of the base token available for sell orders within the reward $Price Range$.

• $Q_b$: This represents the total amount of the base token available for buy orders within the reward $Price Range$.

• $Q$: The effective amount of the base token within the reward $Price Range$.

Calculation Example for $Q$

• One snapshot of the BTC/USDC orderbook

  Side	Price	BTC amount at this price
  Sell	70,040	0.9 BTC
  Sell	70,030	1 BTC
  Sell	70,020	1.2 BTC
  Sell	70,010	1.5 BTC
  Buy	69,990	1.6 BTC
  Buy	69,980	1.2 BTC
  Buy	69,970	0.9 BTC
  Buy	69,960	0.7 BTC

• $P_m = (70010+69990)/2 = 70000$.

• Under the assumption of a reward spread ratio of 0.05%, the reward price range would be calculated as follows:

  The reward $PriceRange=70000*0.0005=35$.

• Considering the provided orderbook, the effective prices are 70030, 70020, 70010, 69990, 69980 and 69970.

• For voyager Alice, who placed a sell order at 70030 for 0.2 BTC and a buy order at 69980 for 0.3 BTC, the effective amount is 0.2 BTC.

Distribution of Vessel Mileage Across Different Trading Pairs

$VesselMileage_{x,s}$ is allocated based on the trading volume. Trading Pairs with higher trading volumes receive a greater share of the total Vessel Mileage.

$$VesselMileage_{x,s} = \frac{V_{x,s}*P_{x,s}} {\sum_{x \in allPairs}V_{x,s}*P_{x,s}}$$

Understanding the parameters

• $x$: A trading pair.

• $s$: A snapshot.

• $V_{x,s}$: The effective Volume of pair $x$ for snapshot $s$. Currently, the volume used for snapshot $s$based on the trading volume from the past 24 hours.

• $P_{x,s}$: The pool boost of pair for snapshot $s$.

Vessel Mileage for a Voyager in One Snapshot

Rewards are then distributed based on the proportion of the user's effective quantity $Q$ to the total effective quantity across all users. To ensure a balance between the interests of Automated Market Maker (AMM) users and Market Maker (MM) users, we apply a weight and $w_2$ to the effective quantities $Q$ of both types of users based on market conditions.

$$VoyagerMileage_s= \sum_{x \in allPairs}\frac{Q_{AMM,u,x,s}*L_{u,s-1}* VesselMileage_{x,s}}{\sum^{u \in allUsers}Q_{AMM,u,x,s}*L_{u,s-1}}$$

• Understanding the parameters

  • $u$: A voyager.

  • $Q_{AMM,u,x,s}$: The effective quantity provided by adding liquidity in AMM pool of one user $u$ in the trading pair $x$ in one snapshot $s$.

  • $L_{u,s}$: The rank boost of the user $u$ in the Navigator Leaderboard in snapshot.

  • $VesselMileage_{x,s}$: Total Vessel Mileage in trading pair $x$ in one snapshot $s$.

  • $Voyager Mileage_s$: The Mileage distributed to one voyager in one snapshot $s$ according to the liquidity provided.

If you are professional market makers and want to earn rewards through limit order liquidity provision, please contact us.

Discord: https://discord.com/invite/medhf7skKS

Twitter: https://twitter.com/VesselFinance