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.

Indeed, to define the influence of past data, we use a parameter named lambda (λ), which is a number between 0 and 1. When lambda is close to 1, there is less influence from past data. To avoid wash trading and maintain the quality of offers on Mangrove’s DEX, this parameter is set low for makers, meaning that past data has more influence on the calculations. However, this setting can reduce the eligible volume for rewards in the specific case of Kandel makers because their orders can be far from the mid-price for extended periods. Therefore, the lambda value will be adjusted for Kandel users to ensure they are not unfairly penalized.

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.