MS1 FAQ
Last updated
Last updated
How do you LP on Mangrove?
Mangrove LPs, also called makers, are the users that deploy liquidity via limit orders and Kandels. The MS1 Points Program main goal is to attract good quality liquidity to Mangrove so LPs get a higher share of the rewards vs takers, also known as traders.
Who are Mangrove traders?
You are a trader when your swap using market orders, Mangrove traders correspond to takers of orders on Mangrove markets.
I have proceeded to >$10k of transactions, how come I have no boost?
Boosts are computed along a period of roughly one week and only applied to the following epoch, so there will be a delay between the moment you generate volume, and when you receive boosted points. More details on the
I have traded $500k but received few points?
The MS1 Points Program aim is to shape Mangrove’s order book with the best price and market depth of Blast. As such the program favours Liquidity Providers (makers) over traders (takers).
How to optimise your MS1 farming?
The MS1 Points Program aim is to shape Mangrove’s order book with the best price and market depth of Blast rather than make everyone happy. As such users that contribute to making Mangrove liquidity Blast’s reap the most rewards. Typically the program favours market makers, with competitive liquidity meaning its positioned on both sides of the book, and liquidity that is very close to the market price to reduce the spread. More details in section Trading & LP Points or on the whitepaper.
To make this system more equitable, Mangrove Kandel is a complex market making strategy available to any user. This is one of the easiest ways to develop and efficient market strategy. It provides very high liquidity for Mangrove’s order book, on both side of the book, with good upside. Feel free to join the Kandel Alpha Chat for guidance
Why are points and incentives so concentrated on the top of the leaderboard?
The current points distribution is based on the formula shared in the whitepaper and parameters shared in the section Parameters per Epoch. It is a fair distribution given it is impartial; rewarding the behaviours required for this goal without favouritism or discrimination. Users that take the time to truly understand the game can reach the top of the leaderboard, extremely quick. We’ve seen for example a user make 1B points in less than a week, surpassing other farmers. Given the complexity that can be implemented in Mangrove’s programmatic orders, sophisticated investors are in a better position to optimise their strategies for farming.