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Revert "Merge pull request #2315 from vegaprotocol/feat/maker_rebate_…
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cdummett committed Jul 31, 2024
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46 changes: 1 addition & 45 deletions protocol/0095-HVMR-high_volume_maker_rebate.md
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Expand Up @@ -11,51 +11,7 @@ Enabling or changing the terms of the program can be proposed via governance. As
- `minimum_party_maker_volume_fraction`: the required `party_maker_volume_fraction` for a party to access this tier
- `additional_maker_rebate`: the additional rebate factor (in percentage of `trade_value_for_fee_purposes`) a party at this tier will receive when they are the maker side of a trade
- `end_of_program_timestamp`: the timestamp after which when the current epoch ends, the program will become inactive and benefits will be disabled. If this field is empty, the program runs indefinitely.
- `window_length`: the number of epochs over which to measure a party's cumulative maker volume.


## Calculation

For each party, the network must track the maker volume they created in each epoch.

At the start of an epoch the network should calculate each parties `party_maker_volume_fraction` by calculating what proportion of the maker volume over the last $m$ epochs a party made up (where m is the `window_length` set configured in the program), i.e.

$$\text{partyMakerVolumeFraction} = \frac{\sum_{i=1}^{m}{V_i}_j}{\sum_{i=1}^{m}\sum_{j=1}^{n}{V_i}_j}$$

where:

- ${V_i}_j$ is the maker volume of party `j` in epoch `i`


Each parties `additional_maker_rebate` is then fixed to the value in the highest tier they qualify for. A parties tier is defined as the highest tier for which their `party_maker_volume_fraction` is greater or equal to the tiers `minimum_party_maker_volume_fraction`. If a party does not qualify for any tier, their `additional_maker_rebate` is set to `0`.

```pseudo
Given:
benefit_tiers=[
{
"minimum_party_maker_volume_fraction": 0.1,
"additional_maker_rebate": 0.01,
},
{
"minimum_party_maker_volume_fraction": 0.2,
"additional_maker_rebate": 0.02,
},
{
"minimum_party_maker_volume_fraction": 0.3,
"additional_maker_rebate": 0.03,
},
]
And:
party_maker_volume_fraction=0.23
Then:
additional_maker_rebate=0.02
```

This `additional_maker_rebate` factor is then fixed for the duration of the next epoch.
- `window_length`: the number of epochs over which to average a party's `maker_volume_fraction`

## Application

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6 changes: 0 additions & 6 deletions spellcheck.yaml
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