Market Maker Earnings
A breakdown of Market Maker (MM) earnings
Gradient’s fee model is structured to directly reward those who contribute liquidity. Gradient Market Makers earn via two mechanisms: Direct order fulfillment and platform wide fee distributions.
1. Direct Order Fulfillment
Market Makers in a specific token pool earn 70% of the fees generated as a direct result of order fulfillment occurring on that specific token. This ensures market makers are fairly compensated for their provision to their chosen asset.
2. Platform-Wide Fee Distributions
50% of the fees considered platform earnings are distributed platform wide to market makers in every Gradient liquidity pool. This encourages liquidity diversification and mitigates the concentration of capital within the platform.
Why it's Sustainable
Unlike AMMs, which dilute rewards through token emissions and expose liquidity providers to impermanent loss:
Market makers on Gradient earn real, transaction-based yield.
Market Makers on Gradient incur no risk of volatility-based divergence loss.
Capital is only used when trades occur—no capital is subjected to idle exposure.
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