Treasury Synthetix will allocate up to 500,000 SNX for fee reductions in the 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.
![500,000 SNX Fee Rebates for Perps V3 Based Traders](https://blog.synthetix.io/content/images/size/w2000/2024/05/500k-SNX-Fee-Rebates.png)
Synthetix is excited to announce the launch of an SNX incentive program for traders on Base, which is scheduled to begin on May 22, 2023. The program aims to attract new traders and encourage trading on Base. Synthetix Perps V3.
THE Synthetix Treasury will allocate up to 500,000 SNX for fee reductions on pervert markets. The first rewards period will run from May 22 to May 28, with the initial distribution of SNX rewards calculated based on this period and distributed within 24 to 48 hours after May 28 at 00:00 UTC. 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
- Treasury Synthetix will allocate up to 500,000 SNX for fee reductions on Base perps markets.
- Discount Details: 90% of fees paid up to the weekly cap of 50,000 SNX.
- Program Dates: The incentive program will begin on May 22, with the first rewards period running from May 22-29. The first distribution of SNX rewards will be calculated based on this time and distributed within 24-48 hours after May 29. Thereafter, the distribution will be completed manually each week.
- Program Duration: The current incentive budget allows for a minimum of 10 full weeks of 90% reduced fees. If the allocated budget is not exhausted during this 10-week period, the program may be extended until the budget is fully used.
- Treasury Board reserves the right to unilaterally suspend or withhold fee rebates to merchants deemed to threaten the integrity or stability of the Synthetix protocol.
- Activities that are not considered healthy or conducive to trading, for example wash trading and price manipulation, will not receive any fee reduction.
Motivation
Synthetix Perps V3 demonstrated its capabilities during its mainnet alpha, generating significant volume and fees. Treasury is currently introducing a trading incentive program to expand the platform's trading user base and strengthen its position as the leading Dex Perps on Base.
By directly reducing 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 2 basis points for creators and 6 basis points for takers on markets like ETH and BTC, allocating 500,000 SNX can help reduce fees by 3 $.75 billion in trading volume.
This incentive will be key to onboarding new traders, driving adoption and contributing to the long-term growth of Synthetix Perps on Base.
Past success and future impact
Synthetix has a proven track record of successfully implementing incentive programs. A previous initiative, which used distribution phase 0 POs, retained an impressive 97% of transaction volumes in the six months following the transition from incentives to no incentives.
The current program is a high ROI activity that will directly increase trading volume and make Synthetix Perps a vital part of the core ecosystem. It will also serve as a live experiment, providing valuable insights into trading reward dynamics and the performance of Synthetix Perps V3 on the Superchain.
Distribution of rewards
Distribution will be done manually within 24-48 hours of the epoch date every Wednesday at 00:00 UTC.
Partners, including Kwenta, intend to have their own complaints pages in the coming weeks.
Trading Synthetix Perps based
Since May 15, 2024, the following partners have been integrated into Synthetix Perps on Base:
Questions?
Join Synthetix Discord for any questions or concerns.