Specific Allocation for Kandel users and vault managers

Because the core principle of MGV's incentive program is the effective volume traded, particular attention is given to Kandel users. Kandel is a market-making strategy that involves posting orders along a price range, providing liquidity across various price points. To support this, a parameter in the reward calculation for Kandel makers differs from that of general makers.

To account for the influence of historical data, we have established a "historical window" that determines how past activity impacts reward calculations. To maintain the quality of offers on Mangrove’s DEX, this window is typically wider for makers, giving more weight to past data in the calculations. However, this approach can unintentionally reduce the eligible volume for rewards in the case of Kandel makers, as their orders often remain far from the mid-price for extended periods. To address this, the window for Kandel users is narrower and specifically adjusted to ensure they are not unfairly penalized while still upholding the integrity of the reward system.

Considering this, Kandel benefits from an additional reserve of incentives and specific parameter adjustments to ensure that vault managers and LPs are well rewarded for their efforts.