MDMA - Liquidity Book Rewards


Moe's Discretized Maker Awards (MDMA) is a highly efficient reward mechanism built on top of Liquidity Book, offering targeted incentives to liquidity in the bins around the active price. The distribution of these targeted incentives correspond to a range of bins which is defined with the current active bin as the reference. The MDMA range is pool-specific, meaning each pool may have different bin ranges for incentives with a maximum of 11 bins rewarded. Rewards are distributed to bins pro rata to their liquidity, meaning if one bin has twice as much liquidity as the other bins, it will receive twice as many rewards.

As the active price bin changes with market fluctuations, the range adapts in real-time to shift rewards to where they are needed. These incentivized ranges enhance liquidity depth at current market prices and ensure the best rates are available to traders.

How to Earn Rewards with MDMA

Rewards flow directly to liquidity provided in the MDMA range. Here is how to start earning:

  1. Navigate to an LB pool with MDMA rewards

On the Pools page, search for a LB Liquidity Pool you wish to supply liquidity for with a 'Rewards' tag.

  1. Check the reward information to see the MDMA bin range

View the current price range for rewards based on the active market price. The quantity of bins in the reward range is also viewable, along with information on current reward amounts, total liquidity in range, and estimated reward APR.

  1. Deploy liquidity within the MDMA range

Deposit tokens into the pool based on your overall LP strategy. Learn more about strategy here.

Deploy and manage your liquidity to maximize your earning potential from both trading fees + MDMA rewards. For more details on adding / removing liquidity from Liquidity Book, see our guide here.

  1. Earn rewards!

Any liquidity you have deposited within the reward range will immediately begin accruing rewards.

The rewarded bin range will also be viewable on the 'My Liquidity' section once you have deployed liquidity, so you can easily see what portion of your liquidity is earning rewards.

Voting for Incentive Pools

MDMA plugs seamlessly into Merchant Moe's veMOE voting system, allowing MOE stakers to determine how rewards are distributed across different LB pools.

User can stake their MOE tokens to accrue veMOE voting power. veMOE holders can then vote to direct rewards to specific LB pools with MDMA rewards active. Voting pools will be opened up for LB pools, and operate the same as Moe Classic pools. The emissions mechanism reacts in real-time to changes in the voting distribution, and directs these emissions to each respective farm or LB pools.

Rewards sent to an LB pool will continuously flow into the incentivization range, and is shared between the liquidity providers based on their share of the overall liquidity in the range. Liquidity provided in LB pools will not require users to stake their LP tokens to farm rewards. $MOE rewards will automatically accrue when liquidity is in range and the rewards be claimable at any time.

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