Dedicated Market Maker (DMM) Program Release

Dedicated Market Maker (DMM) Program Release
Dedicated Market Maker (DMM) Program Release

The second major component of Injective Astro is live: the Designated Market Making (DMM) Program.

Apply to the DMM Program: Link

A recurring theme in the Injective community is the desire to produce highly liquid decentralized markets. In the background, a number of institutional market markers have integrated with Injective to bring greater liquidity to the derivatives and spot markets currently on the protocol. The DMM Program was born from this theme of liquidity and aims to put in place a market structure through which professional market makers receive additional incentives in order to provide that liquidity.

A few weeks ago, the Injective community voted “yes” to governance proposal #68 which allowed for approximately 3 Million INJ to be allocated to qualified market making program participants, based on individual market making scores calculated every four weeks. To ensure that the rewards fostered real and valuable growth of the Injective Protocol, specific formulas were designed to hold market makers accountable. Two specific scoring criteria were created to judge market maker performance:

  • Effective Liquidity Contribution Score (ELCS)
  • Effective Volume Contribution Score (EVCS)

The DMM Program INJ tokens will be split into two pools, one for ELCS and one for EVCS. The eligible market markers will be entitled to receive a portion of each pool based on their respective contribution scores. Each DMM Program epoch lasts for four weeks.

For the sake of brevity, the scores help to ensure that the market makers are providing liquidity at tighter spreads which is overall better for healthy financial markets. The scoring procedures were created after much discussion with current market makers and the broader Injective community. A more comprehensive breakdown of the score calculations can be found in the following Injective governance forum post.

An entirely revamped rewards page has also been created within the Rewards tab on Injective Pro for market makers to track their DMM rewards. The page also specifies helpful details such as which addresses earned rewards and what the current reward multipliers are for specific markets.

The Injective Astro program was designed with all types of users in mind. The Trade and Earn program is available to all users. The DMM program is aimed at market makers who can help to bring effective liquidity for traders on Injective. The two components of Astro help to make Injective more powerful than ever before.

See you on Injective and as always let us know what you think!

About Injective

Injective is a lightning fast interoperable layer one blockchain optimized for building the premier Web3 finance applications. Injective provides developers with powerful plug-and-play modules for creating unmatched dApps. INJ is the native asset that powers Injective and its rapidly growing ecosystem. Injective is incubated by Binance and is backed by prominent investors such as Jump Crypto, Pantera and Mark Cuban.

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