In order to make economic sense for a market maker, the market maker’s compensation must correlate with increased levels of risk. There are three main parameters that we use in liquidity mining to determine market maker compensation: (1) time: placing orders in the order book consistently over time, (2) spreads, and (3) order sizes.

In liquidity mining, market makers accumulate more rewards by consistently placing orders over time and earn higher rewards by placing orders with tighter spreads and with larger sizes. The real-time reward information will be displayed in the real-time Hummingbot Miner dashboard.

For more details on the calculation, please read Demystifying Liquidity Mining Rewards.