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Market makers on 1st operate under a 30% APY minimum guarantee. Market makers earn their primary return from realized spread revenue. The APY guarantee exists because 1st is a DEX built around a new asset class, and we want to attract and support professional market makers as liquidity and trading activity are established.

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How the APY guarantee works

Over a defined evaluation period, the market maker’s realized return from spread capture is measured.
  • If the market maker earns 30% APY or more from spread revenue, no adjustment is made
  • If the market maker earns less than 30% APY, we cover the difference with a USDC payout
For example:
  • If a market maker realizes a 20% APY from spread revenue over a given period
  • We pay the remaining 10% in USDC to reach the 30% APY minimum
The guarantee applies only to realized spread performance. Trading fees and rebates are netted out and do not affect the calculation.

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Purpose of the guarantee

The APY guarantee is designed to:
  • Attract professional market makers to 1st
  • Ensure consistent depth and pricing from launch
  • Support the formation of liquid markets for mirror tokens
The guarantee complements spread-based market making and does not replace it.