A trading competition is a time-limited campaign where traders compete for a reward pool on a token’s pair, usually ranked by profit and loss (PnL), return on investment, or trading volume, to bring new traders and activity to a fresh listing. They work best on new CEX listings and perp DEX markets when combined with a market maker that keeps the book deep, and when rules reward real trading (PnL or ROI with minimum volume, per-account caps, anti-sybil checks) rather than raw volume, which invites wash trading.
Key takeaways
- Use competitions to bring new traders, not to inflate volume numbers.
- Prefer PnL or ROI ranking with a minimum volume; pure volume ranking invites wash trading.
- Run them with a market maker, or traders will face wide spreads and leave.
- Measure new unique traders, retained traders after the campaign, and reward cost per retained trader.
- Perp DEX competitions need extra care: leverage, liquidations, and oracle robustness.
Competition formats
| Format | Ranks by | Good for | Watch out for |
|---|---|---|---|
| PnL leaderboard | Absolute profit | Attracting skilled traders | Whales dominate; add tiers or ROI |
| ROI leaderboard | Return on capital | Smaller traders | Tiny-account gaming; set minimum balance |
| Volume leaderboard | Traded volume | Raw activity | Wash trading and self-trading |
| Participation reward | Hitting a minimum | Broad first-time use | Sybil farms; require verification |
| Team or community | Group totals | Community engagement | Coordination games |
A rule set that resists gaming
- Rank primarily by PnL or ROI, with a minimum volume to qualify.
- Exclude self-matched trades and trades between linked accounts.
- Cap rewards per account and per identity; use exchange KYC or on-chain heuristics against sybils.
- Publish rules, pool, and timing before the start; do not change them mid-campaign.
- Keep a market maker quoting throughout so spreads stay tight.
- Pay rewards after a review window to catch abuse.
Perp DEX competitions
Competitions are a common way to seed activity on a new perpetual futures market on a perp DEX. They add risks a spot competition does not have: leverage and liquidations, funding rates, and dependence on the market’s price oracle. Make sure the market has a robust oracle and enough depth before inviting leveraged traders. For how one major perp DEX handles builder-deployed markets, see listing a perp market on Hyperliquid.
What to measure
- New unique traders during the campaign, and how many trade again 7 and 30 days after.
- Spread and depth before, during, and after.
- Share of volume from the top accounts (high concentration suggests gaming).
- Total reward cost divided by retained traders.
Frequently asked questions
Do trading competitions work for new tokens?
They can, if the goal is first traders and awareness, and the market is deep enough to trade. Measure retention after the competition ends; activity that disappears the day rewards stop was rented, not earned.
How should a trading competition rank traders?
Ranking by PnL or ROI with a minimum volume threshold rewards skilled, real trading. Ranking by raw volume is easiest to game with self-trading. Many campaigns split the pool: a PnL leaderboard plus a smaller participation reward.
How big should the reward pool be?
Size it from what you want to buy: target new traders multiplied by an acceptable reward cost per retained trader. Publish the pool and the rules, and pay in a way your treasury can afford without selling into your own market.
Who runs the competition, the exchange or the project?
Either. Many centralized exchanges run listing campaigns with projects; on perp DEXes, the project or a partner often runs the campaign with on-chain tracking. Our market-making partners can design and run competitions alongside market making.
Are trading competitions legal?
Rules vary by jurisdiction, and some regions restrict promotions tied to leveraged products. Take legal advice before running one, exclude restricted jurisdictions where needed, and never reward wash trading.
Launching a pair and need first traders?
Our vetted market-making partners run trading competitions, including on perp DEXes, alongside market making. Tell us about the listing and we will introduce you.
Plan a trading competitionFree for projects. CEX Ready may be paid a referral fee by partners. We never guarantee listings, prices, or volume.