500k SNX Fee Rebates for Trading Perps V3 on Base
The Synthetix Treasury will allocate up to 500,000 SNX for fee rebates on perps markets. The goal of this program is to onboard new traders, generate fees, and attract new liquidity providers to support trading Synthetix Perps on Base.
Users can trade Synthetix Perps V3 on Kwenta and receive a 90% fee rebate. Track estimated SNX distributions on the leaderboard.
Synthetix is excited to announce the launch of an SNX incentive program for perps trading on Base, set to begin on May 22nd, 2023. The program aims to attract new traders and incentivize trading on Synthetix Perps V3.
The Synthetix Treasury will allocate up to 500,000 SNX for fee rebates on perps markets. The first rewards epoch will run from May 22nd to May 28th, with the initial distribution of SNX rewards calculated based on this epoch and distributed within 24-48 hours after May 28th. The goal of this program is to onboard new traders, generate fees, and attract new liquidity providers to support trading Synthetix Perps on Base.
Program Details
- The Synthetix Treasury will allocate up to 500,000 SNX for fee rebates on perps markets on Base.
- Rebate Details: 90% of fees paid up to the 50k SNX weekly cap, first come first serve.
- Once rewards are exhausted, no additional fees will be rebated.
- Program Dates: The incentive program will begin on May 22nd, with the first rewards epoch running from May 22nd, 8 PM UTC to May 29th. The first distribution of SNX rewards will be calculated based on this epoch and distributed within 24-48 hours after May 29th. Following this, the distribution will be completed manually each week.
- Perps V3 Leaderboard: Use this tool to see an estimate of the SNX distributions.
- Program Duration: The current incentive budget allows for a minimum of 10 full weeks of 90% rebated fees. If the allocated budget is not exhausted during this 10-week period, the program may be extended until the budget is fully utilized.
- The Treasury Council retains the right to unilaterally suspend or withhold fee rebates to traders determined to be threatening the integrity or stability of the Synthetix protocol.
- Activities that are not considered healthy or conducive to trading, e.g., wash trading and price manipulation, will not receive any fee rebates.
Motivation
Synthetix Perps V3 has demonstrated its capabilities during its mainnet alpha, generating significant volume and fees. The Treasury Council is now introducing a trading incentive program to expand the platform's trading user base and strengthen its position as the Dex Perps leader on Base.
By directly rebating trading fees, this initiative allows traders to try Synthetix Perps on Base, encouraging them to experiment with new strategies and arbitrage opportunities without incurring fees for a limited time. With a trading fee structure of 2bp for makers and 6bp for takers on markets like ETH and BTC, the allocation of 500k SNX can rebate fees of $3.75b in trading volume.
This incentive will be key to onboarding new traders, driving adoption, and contributing to Synthetix Perps on Base's long-term growth.
Prior Success & Future Impact
Synthetix has a proven track record of successfully implementing incentive programs. A previous initiative, which utilized OP from the Phase 0 Distribution, retained an impressive 97% of trading volumes in the six months after transitioning from incentives to no incentives.
The current program is a high-ROI activity that will directly increase trading volume and establish Synthetix Perps as a core component of the Base ecosystem. It will also serve as a live experiment, providing valuable insights into the dynamics of trading rewards and the performance of Synthetix Perps V3 on the Superchain.
Epochs & Reward Distribution
The first rewards epoch will run from May 22nd, 8 PM UTC to May 29th, 8 PM UTC. The distribution of SNX rewards for this epoch will be completed manually within 24-48 hours after May 29th.
Subsequent epochs will follow the same schedule, with distributions occurring every Wed/Thur following epoch conclusion.
Use the Perps V3 Leaderboard tool to see an estimate of your weekly SNX distributions and total fees paid.
Trading Synthetix Perps on Base
As of May 15th, 2024, the following partners are integrated into Synthetix Perps on Base:
- Kwenta - Live for public trading - Base V3
- Polynomial - NFT Gated Access - Visit the Polynomial Discord
Questions?
Join the Synthetix Discord for any questions or concerns.