Recently organized the points distribution mechanism shared by the founder of a certain DeFi project in the community. Here's a summary of the ideas.

The basic points system of the project is mainly divided into three parts:

**1. Providing liquidity through limit orders** The points calculation here mainly considers three dimensions:

— How close is the spread? The smaller the difference, the more points earned. This is easy to understand; tighter quotes are more attractive to traders.

— How large is the limit order amount? The larger the amount, the higher the points reward. Deep liquidity contributes more to market stability.

— How long is the limit order duration? The longer it persists, the more points accumulate. This rewards genuine liquidity providers.

**2. Trading volume** and **3. Holding position** are two other important channels for earning points.

The overall mechanism design is quite reasonable, as it incentivizes liquidity provision while also encouraging active trading and long-term holdings.