Accelerated Yield is coming to Genius Yield’s DEX

Genius Yield
8 min readJan 22, 2024

15th of January, 2024, Zug, Switzerland: Genius Yield, the all-in-one DeFi platform that combines an order book DEX with an AI-powered yield optimizer, is thrilled to announce the launch of its yield farming program “Accelerated Yield”.. For a limited time, users on our DEX will be able to get boosted yield farming rewards from using the Genius Yield DEX.

[Article updated on the 11th of March, 2024]

The program has Two Tiers, rewarding traders based on how much they utilize our DEX.

Tier 1–50,000 $GENS per week split among all traders on our DEX proportional to filled $ADA volume:

All fills will be rewarded for both order maker (the person creating the limit order) and order taker (the person filling the order, for example by doing an order-book direct fill or by placing a market order). For the first two weeks of the program, makers and takers will be rewarded equally. Starting with week three on January 29th, order makers will be credited with 75% of a fill and order takers with 25% of a fill.

Let’s look at an example with three traders, Alice, Bob, and Charlie.

Alice places one limit order to buy 800 $GENS for 1000 $ADA, and half of her order is filled by Charlie. The volume of the fill is therefore 500 $ADA, and she as maker and Charlie as taker get credited 250 $ADA each.

Bob places one limit order to sell 200 $GENS for 300 $ADA, which is completely filled by Charlie. The trade volume is 300 $ADA, so Bob and Charlie are credited 150 $ADA each.

So in this example, the 50,000 $GENS would be split in proportions 250 : 150 : 400 :

Tier 2 — For the power users. 20% of DEX fees will be distributed amongst traders who are credited with at least 12,000 $ADA and who are staking at least 100 $GENS at the end of the period. As for Tier 1, rewards will be proportional to points. Note that if you are staking GENS, you are already eligible to receive 20% of DEX fees, which means 40% of the DEX fees will be distributed amongst these users!

✔️ Order Maker: a trader who creates a limit order.
✔️ Order Taker: A trader who fills an existing limit order, either by a direct fill or using the market order feature.”

Who is Eligible?

- Tier 1 — anyone who placed an order on the Genius Yield’s DEX that was partially or completely filled during the promotional period.

  • Tier 2 — anyone who traded at least 12,000 ADA in filled trades in each promotional week and had at least 100 $GENS locked in the Genius Yield Staking Program by the end of each promotional week.

Updates Rules

The goal of the Yield-Acceleration Program is to increase the trading volume on the Genius Yield DEX by incentivizing users to add liquidity and fill the order book. The more liquidity in the order book, the better the trading experience for our users. However, liquidity is only useful if it offers a price that is close to the market price, because users will not want to trade too far away from the market price.

Until now, yield acceleration rewards have only depended on (ADA) volume, but not on price. This had the effect that users could trade with themselves at completely unrealistic prices to increase their rewards.

Starting 3/11/204, we will change this and make rewards dependent on price as well.

After determining the score of a fill as before (looking at volume and applying an “anti-whale exponent”), we will additionally multiply by a weight to get the final score. This weight will be 100% for fills happening at the current market price and less than 100% for prices away from the current market price. The weight will be determined by the following graph:

(For experts: This is a Gaussian with mean at the market price and standard deviation 10% of the market price.)

A few examples:

  • For a trade executed at precisely the market price, the weight will be 100%, i.e. the score will not be modified at all.
  • For a trade 1% above or below the market price, the weight will be 99.5%, so the score will be slightly (0.5%) lower than before.
  • A trade 10% above or below the market price has weight 60.7%, so scores for fills at that price will be diminished by ~40%.
  • Trades 30% above or below the market price have weight 1.1%, so the score will be reduced by almost 99%.

These new weights will be used to adjust scores for both Tier-1 and Tier-2 rewards. For Tier-2, we will additionally apply those weights to individual trading volumes to determine who qualifies for Tier-2.

Note the following:

  • The total rewards paid out every week are not affected by this. What changes are relative impacts of individual trades when determining the rewards for a given trader.
  • “Normal” trades happen close (in the +/-1% range) to the market price anyway (that’s basically what “market price” means), so such normal trades won’t be affected at all by the new rules.
  • Trades that try to game the system using outrageously unrealistic prices will be severely penalized.
  • The Genius Yield DEX is completely decentralized, so every user can place orders at any price he or she chooses. We can’t and won’t put any restrictions on trades placed by our users. The rewards program, however, is a different story: We voluntarily reward our users for adding liquidity to make the trading experience better for everyone, so it’s up to us to decide which trades we reward.

How will I collect my rewards?

You will be able to claim the rewards at with the wallet address that conducted the trades. Rewards will be available for claiming every week, starting at the beginning of February 2024. The exact date will be announced soon!

When will Accelerated Yield rewards start?

The program starts on January 15th, 2024, the ending date will be announced in the future. During this period rewards will be accrued to all eligible traders.

Want to run your own market making bot?

  • What is a market making bot? here!
  • Learn how to create your own market making bot here!
  • Step-by-step video walkthrough on creating your own market making bot here!
  • Access the market making bot repo here!
  • Access the DEX Contract API here!

Detailed split of the GENS rewards pool
From January 15th, 2024, to January 29th, 2024,11:59 am UTC, each fill will be split 50 : 50 between order maker and order taker, i.e. the person who placed the order and the person who filled it.

Starting January 29th, 2024, 12:00 pm UTC, to incentivize liquidity providers (aka “makers”), each fill will be split 75 : 25 between order maker and order taker. Then end of the event will be announced at a later date.

In addition, before determining each trader’s reward the volume ratio will be raised to the 0.7-th power. The change is, instead of volume directly, to look at the volume of each trade taken to the e-th power, in this case, e is 0.7. The power function reduces the impact of large trade volumes and amplifies the impact of smaller trade volumes. This incentivizes smaller trades and gives whales less of an advantage.

Let’s revisit our example with Alice, Bob, and Charlie, but now for the time starting on January 29th.

For the partial fill of Alice’s order (500 $ADA), Alice is credited with 75% (370 $ADA), and Charlie, who filled the order, is credited with 130 $ADA. Taking the power gives 62.77 for Alice and 30.18 for Charlie.

For Bob’s complete fill (300 $ADA), he is credited 225 $ADA, and Charlie is credited 75 $ADA. Taking powers gives 44.31 and 20.54 respectively.

So the 50,000 $GENS will be split as follows:

This nicely demonstrates the effects of the new rules:

  • Charlie, who is acting only as a taker, doesn’t get as much as he did with the old rules.
  • Alice, being a larger trader than Bob (a “whale”), still gets more than Bob, but the difference has been dampened. This is due to taking 0.7-th powers.

In case of any questions, please reach out to us on Discord or Telegram.

Disclaimer: The market maker bot and smart order router code is provided open source as-is, with no warranties or guarantees of any kind, either expressed or implied, and is not intended to be used as a substitute for professional investment advice. It doesn’t include official technical support. The user does not receive any investment advice from Genius Yield in connection with any trades, and no suitability review or similar of any trades or strategy is conducted by the Genius Yield team. The use of this bot is entirely at the user’s own risk. The user assumes all risks associated with the use of this bot, including but not limited to financial losses, tokens losses, loss of data, business interruption, and other unforeseen circumstances. The user is solely responsible for the final configuration and operation of this bot, and it’s recommended to seek professional trading advice before using it in mainnet.

About Genius Yield

Genius Yield is the all-in-one DeFi platform that combines an order book DEX with an AI-powered yield optimizer, “Smart Liquidity Vault”, built from the ground up to fully benefit from Cardano’s EUTxO-based ledger. The Genius Yield platform is accessible both to beginners and seasoned traders. Our solutions are practical and easy to use, allowing participants to reap the benefits of DeFi in a mitigated environment anchored on security, transparency, and automation.

Genius Yield minimizes risk and maximizes profits in an intuitive, hassle-free way.

The Community DEX

At Genius Yield we firmly believe that sustainable growth can be achieved through collaboration with the Cardano community and the ecosystem. That’s why selected, core elements of our DEX were open-sourced:

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Genius Yield

Genius Yield is the all-in-one DeFi platform, that combines concentrated liquidity DEX with an automated yield optimizer.