Incentives

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In the MORE protocol, incentives play a crucial role in encouraging participation from both suppliers and borrowers, ensuring that markets remain active and efficient. Unlike governance-driven models, where incentives are collectively decided, MORE operates on a permissionless basis. This allows market creators or external stakeholders to introduce rewards independently, without requiring approval from a central authority. As a result, different markets can develop unique incentive structures to attract liquidity and sustain engagement.

Incentive Mechanisms in Markets

To promote activity within a market, incentives can be applied to either the supply or borrowing side. A market creator can offer rewards to those who provide liquidity or take out loans, increasing participation and ensuring a steady flow of assets. Additionally, third-party entities, such as token issuers or other financial participants, can introduce incentives to boost adoption and enhance liquidity for specific assets. Since MORE does not impose governance-based restrictions, these incentives are implemented solely at the discretion of those funding them, leading to a diverse and competitive market environment.

Reward distribution is automated, with participants receiving incentives proportionally based on their level of engagement. These rewards are claimable through smart contracts that handle allocation and payouts without intermediaries. By enabling market creators to design and deploy their own incentive structures, MORE fosters a decentralized and adaptable financial system where markets evolve organically to meet demand.