Trading Contests

Overview

RedCarpetHQ runs epoch-based trading contests that reward active traders with a share of trading fees. Contests incentivize market activity and liquidity while distributing value back to the community.

How Contests Work

Epoch System

Contest Periods:

  • Typically 7-day epochs (shorter durations may be used during testing)

  • Start/end times announced

  • Automatic rollover to next epoch

  • Continuous participation

    • Tracking:

  • Buy volume tracked per user

  • Only buy-side volume counts

  • Cumulative across all tokens

  • Real-time leaderboard

    • Reward Pool

    40% of trading fees go to contests:

    Example:

  • Total trading fees in epoch: $10,000

  • Contest pool: $4,000 (40%)

  • Distributed to qualifying traders

    • Distribution:

  • Pro-rata based on buy volume

  • Minimum threshold required

  • Claimed after epoch ends

    • Participation

    How to Participate

    1. Trade during contest epoch
    2. Buy campaign tokens (only buys count)
    3. Accumulate volume
    4. Meet minimum threshold
    5. Claim rewards after epoch

    No registration required - automatic participation

    Minimum Threshold

    Qualification Requirements:

  • Minimum buy volume per epoch

  • Prevents spam and dust trades

  • Threshold announced per epoch

  • Typically $100-$500 in volume

    • Example:

  • Minimum threshold: $500

  • Your buy volume: $1,000

  • Status: ✅ Qualified

    • Volume Calculation

    What Counts:

  • Buy transactions on marketplace

  • USDC spent (excluding fees)

  • All campaign tokens combined

  • Verified trades only

    • What Doesn't Count:

  • Sell transactions

  • Cancelled offers

  • Wash trades

  • Suspicious activity

    • Rewards Distribution

    Pro-Rata Calculation

    ``
    Your Reward = (Your Buy Volume / Total Qualified Volume) × Contest Pool
    `

    Example:

  • Contest pool: $4,000

  • Total qualified volume: $100,000

  • Your buy volume: $5,000

  • Your reward: $200 (5% of pool)

    • Claiming Rewards

    After Epoch Ends:
    1. Navigate to Contests page
    2. View your rewards
    3. Click "Claim Rewards"
    4. Confirm transaction
    5. Receive USDC

    Timing:

  • Claim anytime after epoch ends

  • No expiration on claims

  • Gas fees apply

  • Instant payout

    • Multiple Epochs

    Participate in multiple contests:

  • Each epoch independent

  • Rewards accumulate

  • Claim individually or batch

  • Historical tracking available

    • Contest Strategy

    Maximizing Rewards

    ✅ Effective Strategies:

  • Focus on buy volume

  • Time trades strategically

  • Spread across epoch

  • Monitor leaderboard

  • Calculate ROI vs. fees

    • ROI Consideration:
    `
    Net Profit = Contest Reward - Trading Fees Paid
    Trading Fees = Buy Volume × 2.5%
    `

    Example:

  • Buy volume: $10,000

  • Trading fees paid: $250

  • Contest reward: $400

  • Net profit: $150

    • Common Mistakes

    ❌ Avoid:

  • Trading just for contests (ignore value)

  • Wash trading (prohibited)

  • Last-minute volume dumps

  • Ignoring fee costs

  • Chasing losses

    • Anti-Manipulation

    Wash Trading Detection

    Monitored Patterns:

  • Same-address trading

  • Circular transactions

  • Suspicious timing

  • Volume manipulation

  • Coordinated activity

    • Consequences:

  • Disqualification from contest

  • Rewards forfeited

  • Risk tier downgrade

  • Potential account suspension

    • Fair Play Rules

    Prohibited Activities:

  • Wash trading

  • Sybil attacks

  • Market manipulation

  • Collusion

  • Bot abuse

    • Enforcement:

  • Automated detection

  • Manual review

  • Community reporting

  • Transparent penalties

    • Leaderboard

    Real-Time Tracking

    View Current Standings:

  • Your rank

  • Your buy volume

  • Top traders (anonymized)

  • Total contest pool

  • Time remaining

    • Information Displayed:

  • Wallet address (truncated)

  • Buy volume

  • Estimated reward

  • Qualification status

    • Privacy

    Anonymization:

  • Addresses truncated

  • No personal information

  • Opt-out available

  • Blockchain transparency maintained

    • Contest Types

    Standard Contests

    Regular epochs:

  • Regular 7-day periods (shorter durations may be used during testing)

  • Consistent rules

  • Predictable timing

  • Standard reward pool

  • All tokens eligible

    • Special Events

    Occasional special contests:

  • Higher reward pools

  • Specific tokens featured

  • Bonus multipliers

  • Limited time events

    • Announcements:

  • Twitter notifications

  • Website banners

  • Email updates (if subscribed)

    • Tax Implications

    Contest rewards are taxable:

    Considerations:

  • Rewards = income

  • Report on tax returns

  • Track all claims

  • Consult tax professional

    • Record Keeping:

  • Claim amounts

  • Claim dates

  • Transaction hashes

  • USD values

    • Technical Details

    Contest Contract

    Key Functions:
    `solidity
    // Track buy volume
    function addBuyVolume(
    address token,
    address trader,
    uint128 volume
    ) external;

    // Claim rewards
    function claim(
    address token,
    uint32 epoch
    ) external;

    // View rewards
    function getClaimableAmount(
    address token,
    address trader,
    uint32 epoch
    ) external view returns (uint256);
    ``

    Integration

    Connected Systems:

  • Market contract (volume tracking)

  • FeeDistributor (reward funding)

  • RiskOracle (wash trade detection)

    • Best Practices

    For Traders

    ✅ Do:

  • Calculate fee costs vs. rewards

  • Trade tokens you believe in

  • Spread volume across epoch

  • Monitor qualification status

  • Claim rewards promptly

    • ❌ Don't:

  • Trade solely for contests

  • Engage in wash trading

  • Ignore market fundamentals

  • Overlook fee costs

  • Wait too long to claim

    • Risk Management

    Protect Yourself:

  • Don't overextend for contests

  • Maintain trading discipline

  • Consider market conditions

  • Track your P&L

  • Set volume limits

    • Frequently Asked Questions

    Q: Do sell transactions count for contests?
    A: No, only buy volume counts toward contest rewards.

    Q: Can I participate in multiple epochs?
    A: Yes, each epoch is independent and you can participate in all of them.

    Q: What if I don't meet the minimum threshold?
    A: You won't qualify for rewards that epoch, but you can try again next epoch.

    Q: When can I claim my rewards?
    A: Anytime after the epoch ends. Rewards don't expire.

    Q: Are contest rewards taxable?
    A: Yes, contest rewards are typically taxable income. Consult a tax professional.

    Q: Can I see other traders' volumes?
    A: Yes, the leaderboard shows anonymized wallet addresses and their volumes.

    Q: What happens if wash trading is detected?
    A: Disqualification from contest, reward forfeiture, and potential account penalties.

    Related Resources

  • Marketplace Overview
  • Token Trading
  • Fee Distribution
  • Risk Management

    • Need Help?

    If you have questions about trading contests, contact our support team at support@redcarpethq.org.