Competitive Market Making

A Competitive Market Making campaign sets up a task for market makers to generate a specified amount of trading activity on a chosen trading pair (e.g., HMT/USDT) at a given exchange (e.g., PancakeSwap).

The purpose of this campaign is the same as a Market Making campaign. However, this type uses competitive reward tiers — rewarding only top performers.

How it works#

In a Competitive Market Making campaign, participants execute trades on the specified pair to accumulate trading volume and score.

Unlike standard Market Making campaigns, this type features:

Minimum volume requirement — each participant must make the minimum required volume to be eligible for rewards (ineligible participants receive nothing)
Daily ranking system — eligible participants are ranked daily by their weighted trading score
Tiered reward distribution — any number of participants can enter, but rewards are distributed only to prize places as percentages of the daily reward pool (e.g., 1st place: 40%, 2nd place: 30%, 3rd place: 20%, 4th place: 10%)

The system periodically retrieves trade data from the exchange API, aggregates each participant's total trading volume, computes their weighted score (using the same weights as Market Making campaigns), ranks participants and distributes rewards accordingly.

Example#

Suppose a campaign specifies:

Symbol (Trading Pair): BTC/USDT
Exchange: Bybit
Minimum Volume Required: 10,000 USDT
Duration: 2 days
Rewards Distribution: 1st: 50%, 2nd: 30%, 3rd: 20%

Participants generate trading volume throughout the campaign. Those reaching at least 10,000 USDT in volume are eligible. Daily, eligible participants are ranked by their weighted scores and top performers get rewards according to the distribution percentages.

Reward Distribution#

Rewards in a Competitive Market Making campaign are distributed daily from the campaign's escrow fund.

Daily Reward Pool = Total Campaign Fund ÷ Campaign Duration (in days)
Minimum Volume Requirement: Participants must reach this threshold to be eligible for rewards
Rewards Distribution: A list of percentages for each prize place (e.g., 50, 30, 20)

Distribution Logic#

Filter Eligible Participants:
- Only participants with total volume ≥ minimum required volume are considered
- Participants with volume below required value aren't considerend as eligible
Rank Eligible Participants:
- Sort by weighted score in descending order
- Participants with the same score tie for the same prize place
Distribute Rewards:
- If only one participant holds the rank → They receive Daily Reward Pool × Reward Percentage
- If multiple participants tie → Accumulated percentage slots are distributed equally (e.g. if ranks 2 and 3 are and reward distribution is [60%, 30%, 10%] → each gets 20% of Daily Reward Pool)

Example Calculations#

Scenario 1: No ties#

Total Fund: 100 USDT
Campaign Duration: 2 days → Daily Reward Pool = 50 USDT
Minimum Volume Required: 5,000 USDT
Rewards Distribution: [50, 30, 20]

Daily Results:

Rank	Participant	Volume	Score	Eligible?
1st	A	8,000	5,940	✓
2nd	B	7,500	4,990	✓
3rd	C	6,200	4,250	✓
4th	D	5,000	3870	✓
5th	E	4,500	3,120	✗

Reward Distribution:

Participant A (1st place): 50 × 0.50 = 25 USDT
Participant B (2nd place): 50 × 0.30 = 15 USDT
Participant C (3rd place): 50 × 0.20 = 10 USDT
Participant D (not on prize place) = 0 USDT
Participant E (below minimum volume): 0 USDT

Scenario 2: Participants tied for 2nd place#

Total Fund: 100 USDT
Campaign Duration: 2 days → Daily Reward Pool = 50 USDT
Minimum Volume Required: 5,000 USDT
Rewards Distribution: [50, 30, 20]

Daily Results:

Rank	Participant	Volume	Score	Eligible?
1st	A	8,000	5,940	✓
2nd (Tied)	B	7,500	5,100	✓
2nd (Tied)	C	6,800	5,100	✓
4th	D	5,500	3,200	✓

Reward Distribution:

Participants B and C are tied for 2nd place. They share the rewards for 2nd and 3rd places (30% + 20% = 50% total), distributed equally.

Participant A (1st place): 50 × 0.50 = 25 USDT
Participant B (tied 2nd): 50 × (0.50 ÷ 2) = 50 × 0.25 = 12.5 USDT
Participant C (tied 2nd): 50 × (0.50 ÷ 2) = 50 × 0.25 = 12.5 USDT
Participant D (outside prize places): 0 USDT

Scenario 3: Fewer eligible participants than prize places#

Total Fund: 100 USDT
Campaign Duration: 2 days → Daily Reward Pool = 50 USDT
Minimum Volume Required: 5,000 USDT
Rewards Distribution: [50, 30, 20]

Daily Results:

Rank	Participant	Volume	Score	Eligible?
1st	A	8,000	5,940	✓
2nd	B	6,500	4,100	✓
-	C	4,200	2,800	✗
-	D	3,500	1,900	✗

Reward Distribution:

Only 2 participants qualify. Only the 1st and 2nd prize places are filled; the 3rd place (20%) remains unallocated.

Participant A (1st place): 50 × 0.50 = 25 USDT
Participant B (2nd place): 50 × 0.30 = 15 USDT
Participants C and D (below minimum volume): 0 USDT each

Scenario 4: Three-way tie for 1st place#

Total Fund: 120 USDT
Campaign Duration: 2 days → Daily Reward Pool = 60 USDT
Minimum Volume Required: 5,000 USDT
Rewards Distribution: [50, 30, 20]

Daily Results:

Rank	Participant	Volume	Score	Eligible?
1st (Tied)	A	7,500	5,500	✓
1st (Tied)	B	8,000	5,500	✓
1st (Tied)	C	7,200	5,500	✓
4th	D	6,000	3,800	✓

Reward Distribution:

Participants A, B, and C are all tied for 1st place. They share the accumulated slots of 1st (50%), 2nd (30%), and 3rd (20%) = 100% total, distributed equally among the 3 tied participants.

Participant A (tied 1st): 60 × (1.00 ÷ 3) = 20 USDT
Participant B (tied 1st): 60 × (1.00 ÷ 3) = 20 USDT
Participant C (tied 1st): 60 × (1.00 ÷ 3) = 20 USDT
Participant D (outside prize places): 0 USDT

Scenario 5: Tie at the edge of prize places#

Total Fund: 100 USDT
Campaign Duration: 2 days → Daily Reward Pool = 50 USDT
Minimum Volume Required: 5,000 USDT
Rewards Distribution: [50, 30, 20]

Daily Results:

Rank	Participant	Volume	Score	Eligible?
1st	A	7,500	6,470	✓
2nd	B	6,500	5,084	✓
3rd (Tied)	C	6,500	4,120	✓
3rd (Tied)	D	6,500	4,120	✓
5th	E	5,000	2,780	✓

Reward Distribution:

Participants C and D are tied for 3rd place with the same score (4,120). They share the 3rd place reward (20%), distributed equally.

Participant A (1st place): 50 × 0.50 = 25 USDT
Participant B (2nd place): 50 × 0.30 = 15 USDT
Participant C (tied 3rd): 50 × (0.20 ÷ 2) = 50 × 0.10 = 5 USDT
Participant D (tied 3rd): 50 × (0.20 ÷ 2) = 50 × 0.10 = 5 USDT
Participant E (outside prize places): 0 USDT