❔How to earn SDEX rewards
Last updated
Last updated
SDEX is the shortened name for Stellar’s internal decentralized exchange. SDEX has been at the heart of Stellar since its inception, allowing users to trade tokens within the network, creating a decentralized marketplace at the protocol level.
SDEX rewards incentivize placing offers onto order books of markets chosen by AQUA holders through liquidity voting. Every hour market makers get rewarded AQUA tokens based on how much liquidity they have held on the order books, with filled offers gaining higher rewards than those remaining unfulfilled.
So how do you create offers on Stellar?
Offer creation happens through Stellar user interfaces (Stellar UIs). Popular UI’s include LOBSTR, StellarX, StellarTerm, Stellarport, Lumenswap, and NiceTrade.
In this quick guide, we are using LOBSTR.
Head to the LOBSTR app and click the ≡ symbol in the top left corner.
Click on Trade.
Select the market you would like to trade on using the token boxes near the top of the screen.
In this scenario, we are using XLM ⇋ USDC. For reference, both XLM ⇋ USDC & USDC ⇋ XLM refer to the same market. The only difference is which of the two assets you are using as the base asset for exchange. Switching them around lets you see the order book from different angles.
Select Order Book
View both the buy & sell side of the order book for the selected market to view prices already available for the market.
Once you have seen the order book and know what others are currently offering, press the ← button to head back to the trade screen.
Select either Buy or Sell at the bottom of the screen.
Using the information you found from the order books, place buy or sell offers at lower or higher prices than other users. Doing this means you place assets into order books without them instantly executing. Remember, offers need to stay in order books for prolonged periods to get better SDEX rewards.
Once you have input the amount and price for your offer, click Buy/Sell to submit the offer to the network.
All you need to do now is allow your assets to sit on the order books for other Stellar users to take. You will receive hourly rewards while your assets sit on the order books based on how long your assets have sat their & how close to the market spread they are. If other users fully or partially fill your offers, you will receive an increased hourly SDEX reward for your contribution to liquidity for the market.
