Volume-Based Incentive refers to rewards given based on the amount of transactions or trading volumes within a specific period. In trading platforms, users who buy or sell larger quantities of a cryptocurrency earn benefits, such as reduced fees, bonuses, or enhanced rewards. The purpose is to encourage higher trading activity and liquidity on the platform.This incentive can also apply to liquidity providers in decentralized finance (DeFi) projects. When users supply assets to a liquidity pool, they may receive rewards proportional to their contribution’s volume, fostering an active participation culture.By implementing volume-based incentives, exchanges and DeFi platforms aim to attract more users and maintain a competitive edge in a crowded marketplace. Users benefit from their increased activity, creating a win-win situation that boosts the overall ecosystem.