Keeper Incentives

Keepers keep the Drift network healthy.

Keeper Rewards

For matching orders, Keepers receive a portion of the taker fee.

For cancelling orders (that can be cancelled see Advanced Orders FAQ), Keepers will receive the cancel_order_fee on the state.

Liquidation rewards for keepers are different for every market and range from 0.75% to 3% of the amount liquidated. See Fee schedule (opens in a new tab).

Currently, the USDC reward function for keepers (f_keeper) is designed as:

$f_{\text{keeper}} = \textit{min}(0.01 \ast \textit{max}\left(1, t_{\text{order}}\right)^ {1/4}, 0.1 \ast f_{\text{user}})$

where: $t_{\text{order}}$ is seconds since the order was placed $f_{\text{user}}$ is the taker fee paid by the user who placed the order

This reward is subject to evolve to incentivise CLOB-like execution ordering. See source code (opens in a new tab) for the on-chain calculation.

A Keeper reward multiplier (for taker price improvement) is applied to the keeper's minimum time-based reward component in the function above. Any percent improvement versus the baseline oracle +/- 10bps, increases this multiplier.

Future Work

30d fill volume for keepers is tracked on-chain via UserStats, allowing for logic to reward consistent keepers with a larger multiplier on rewards.