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Market Maker Pilot Program
We are running a Pilot Reward Program for Market Makers to drive volume through the protocol.

How it works

During the 6 month Pilot Program, participating Market Makers will earn vested ROOK by integrating their automated trading strategies into the HidingBook and completing transactions. Market Makers will also earn a significant percent of MEV captured by our Keepers on every order in the form of ROOK (user rewards). During the course of the program, Market Makers will compete for a share of a ROOK rewards pool (valued up to $1,920,000 USD) based on parameters set below.

Earning ROOK

Market Makers will earn ROOK rewards on a weekly basis proportional to the ROOK bids attributed to their completed transactions.
  • We will be creating a rewards pool based on the total number of market makers integrated with the Rook Protocol.
  • For each market maker participating, we will add 200 ROOK or $20,000 USD value in ROOK to the pool per week, depending on ROOK's price being above or below $100.
  • ROOK will be accumulated proportionally to the amount of ROOK bid accumulated by market makers.
  • The formula being used to calculate a Market Maker’s ROOK earned through weekly rewards is:
sumThisMMersRookBids/sumAllMMersRookBidstotalRewardsAvailablesumThisMMersRookBids / sumAllMMersRookBids * totalRewardsAvailable
Calculating Weekly ROOK Rewards Pool Contribution from DAO
We will record ROOK’s USD price at the end of the weekly epoch and use that for the calculation of what is contributed to the weekly ROOK rewards pool. We set a $100 floor price for ROOK rewards earned via the Pilot Program, establishing a maximum of 800 ROOK per week to be contributed to the Market Maker rewards pool. What this means is that if at the weekly epoch, if ROOK’s price is above $100 we will be adding the original $80,000 in an equivalent amount of ROOK to the pool. If ROOK’s price is below $100, the pool will receive 800 ROOK.
Example:
  • There are two market makers participating in the program.
  • One captures 75% of ROOK bids during the week, the other captures 25%.
  • ROOK's price is $100
  • MM1 who captured 75% of bids earns 75% of weekly ROOK rewards, equal to 300 ROOK.
  • MM2 who captured 25% of bids earns 25% of weekly ROOK rewards, equal to 100 ROOK.
Market Maker
Rewards Available
Weekly ROOK Bid
Percentage of total weekly ROOK bid
Market Maker 1
300
6,000
75%
Market Maker 2
100
2,000
25%
Total
400
8,000
100%

A typical week for a Rook market maker

Assuming:

  • The market maker has 1000 orders filled via the Rook Protocol during the week.
  • Each bid on these orders was valued at .5 ROOK.
  • There are 4 market makers participating in the program, meaning there is up to 800 ROOK available to earn weekly.
  • The market maker captured 50% of the ROOK bids for the week.
Net proceeds:
  1. 1.
    Market making profits: Market maker will keep 100% of all captured spread on bids and asks. (not calculated)
  2. 2.
    Arbitrage profits: Market maker will have earned (1000 orders * .5 ROOK bid *80%) 400 ROOK in user rewards
  3. 3.
    Rook Pilot Program Profits: Market maker will have earned up to $40,000 in ROOK for weekly rewards.

Example week (ROOK priced at $125)

Revenue
Units
USD value
ROOK earned via user Rewards
400
$50,000
ROOK earned via Pilot Rewards
320
$40,000
Total Earned for 1 week
720
$90,000

How to qualify

Interested market makers can contact Kyle Detz for more information: Email: [email protected] Discord: whatsthedeetz ♜♜♜#0002 Telegram: @whatsthedeetz