Market Maker Incentives
Market maker incentive programs are currently being designed and will be announced after Phase 2 (Full Testnet). Follow us on Twitter for updates.
Why Liquidity Matters
Options markets require robust liquidity to function effectively. Unlike spot or perpetual markets where a single price point suffices, options span multiple strikes and expiries. This creates a multi-dimensional orderbook that demands significant capital commitment from market makers.
The Liquidity Challenge
Tight spreads directly impact trader profitability. Wide bid-ask spreads mean:
- Higher costs for retail traders entering and exiting positions
- Reduced capital efficiency for hedgers
- Price discovery inefficiencies that can cascade across related instruments
Depth matters because options traders often need to execute size. A market with tight spreads but shallow depth forces traders to move prices against themselves, creating slippage that erodes strategy returns.
Continuous quoting is essential since options positions need active management. Market makers who quote reliably, even during volatility, enable traders to adjust Greeks and roll positions without excessive friction.
Our Commitment
Hypercall is committed to building a liquid options market. We're designing incentive structures that:
- Reward consistent quoting across strikes and expiries, not just at-the-money options
- Align maker incentives with trader experience through metrics like effective spread and fill rates
- Scale with the protocol so early participants benefit from growth
Planned Programs
Details will be finalized based on testnet learnings, but we're exploring:
Fee Rebates
Competitive maker fee structures for market makers meeting quoting obligations:
- Reduced or negative maker fees based on volume and quote quality
- Tiered programs rewarding consistent participation
Liquidity Mining
Token-based incentives for providing liquidity during the bootstrap phase:
- Rewards proportional to quoted depth and tightness
- Bonus allocations for underserved strikes/expiries
Builder Codes
Revenue sharing for integrators who bring volume to the platform. See Builder Codes for more information.
Get Involved
Interested in market making on Hypercall? Reach out via Twitter to discuss early access and partnership opportunities.
We're particularly interested in:
- Professional market makers with options experience
- Teams with existing infrastructure for derivative quoting
- Algorithmic traders looking to deploy capital in DeFi options