Rewards & Incentives

Aura offers compelling rewards and incentives to encourage active participation, accurate predictions, and effective governance within the community.

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Market Creator Rewards

Market creators are essential to the Aura ecosystem and are rewarded through a portion of the fees generated by their markets:

• Fee Sharing: Creators receive between 1% and 30% of the total trading fees, depending on their staked $AURA tier.

• Immediate Benefits: Fee shares are directly distributed in USDT upon market settlement.

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Voter Rewards in Disputed Markets

Aura values impartiality and fairness. To ensure this, participants voting on disputed outcomes are rewarded:

• Voter Incentives: When market outcomes face disputes, voters who cast their vote for the winning side share 10% of the total market trading fees.

• Fairness Guarantee: Only neutral $AURA holders without active positions in the disputed market can vote, maintaining transparency and impartiality.

This system rewards honest and accurate governance participation, ensuring a robust and fair decision-making process.

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Liquidity Rewards

Aura runs a liquidity rewards program to keep markets liquid and tradeable. Makers who post qualifying resting limit orders near the true midpoint can earn a share of daily USDT rewards.

Overview

By quoting on the order book, liquidity providers are automatically eligible. The program is designed to:

• Strengthen liquidity across all markets

• Maintain liquidity throughout a market’s lifecycle

• Encourage balanced, midpoint-adjacent quoting

• Support real trading activity

• Discourage obvious reward farming

This design draws from proven LP incentive frameworks and is adapted for Aura’s binary markets with distinct YES/NO books.

Methodology

Rewards are calculated using a midpoint-based scoring function that values depth on both sides of the book and penalizes wide spreads. Each market defines a max spread and a minimum size cutoff. Makers earn points for eligible orders inside those bounds, and rewards are distributed based on each maker’s share of total points for the day.

Funding & Payouts

• Trading fee: 2.5% on executed volume, collected in USDT.

• Liquidity rewards pool: 10% of trading fees.

• Daily pool = 0.25% of executed volume for the day.

• Payouts are distributed daily at midnight UTC to the wallet that provided liquidity.

Adjusted Midpoint (Anti-Manipulation)

• The midpoint is computed after filtering out small "dust" orders below a minimum incentive size.

• This prevents tiny orders from shifting the midpoint and farming rewards.

Scoring

Orders are scored by distance from the adjusted midpoint and by size. Closer quotes earn sharply more rewards. Variables:

Variable	Description
S	Order position scoring function
v	Max spread from midpoint
s	Spread from adjusted midpoint
b	Market multiplier
c	Single-sided penalty (typically 3.0)
Qone	Points on book one
Qtwo	Points on book two
Qmin	Two-sided score
Qnormal	Normalized score
Qepoch	Epoch score
Qfinal	Final reward share
BidSize	Size of bid orders at a price level
AskSize	Size of ask orders at a price level
Spreadm	Distance from midpoint for market m
Spreadm'	Distance from midpoint for the complement market

Equation 1:

$$S(v,s) = \left(\frac{v - s}{v}\right)^2 \cdot b$$

Equation 2 (book one):

$$Q_{one} = \sum S(v, Spread_m) \cdot BidSize_m + \sum S(v, Spread_{m'}) \cdot AskSize_{m'}$$

Equation 3 (book two):

$$Q_{two} = \sum S(v, Spread_m) \cdot AskSize_m + \sum S(v, Spread_{m'}) \cdot BidSize_{m'}$$

Equation 4:

If midpoint is between 0.10 and 0.90:

$$Q_{min} = \max\left( \min(Q_{one}, Q_{two}), \max(Q_{one} / c, Q_{two} / c) \right)$$

If midpoint is below 0.10 or above 0.90:

$$Q_{min} = \min(Q_{one}, Q_{two})$$

Equation 5:

$$Q_{normal} = \frac{Q_{min}}{\sum Q_{min}}$$

Equation 6:

$$Q_{epoch} = \sum Q_{normal}$$

Equation 7:

$$Q_{final} = \frac{Q_{epoch}}{\sum Q_{epoch}}$$

Daily reward for a maker:

$$Reward = Q_{final} \cdot DailyPool$$