1. What Are Maker Rebates & Why They Matter
Before digging into the mechanics, let’s clarify the concept.
Maker = an order that adds liquidity to the order book (i.e. limit orders that others fill against).
Taker = an order that removes liquidity (market orders or aggressive limit orders).
Many exchanges reward makers with rebates or lower fees to incentivize liquidity supply, since deeper order books improve market efficiency.
Maker rebate farming refers to systematically placing maker orders (often at scale) in order to collect rebates over many trades, ideally net-positive when accounting for slippage, spreads, and risk. The goal is not necessarily large directional bets, but consistent yield from market making behavior.
In traditional centralized exchanges, rebate farming is limited to those with high-tier access, ultra-low latency infrastructure, and often large capital. In DeFi, maker rebate strategies—if done right—can democratize liquidity provision.
2. Hyperliquid’s Fee Structure & Rebates Explained
To understand how rebates work on Hyperliquid, here’s a breakdown:
Fee Tiers & Maker Rebates
Hyperliquid bases trading fees on a rolling 14-day volume. Higher volumes lead to better fee tiers (lower taker fee, smaller or negative maker fee).
Maker rebates are continuously paid on each trade directly to your trading wallet.
As you climb tiers (e.g. > $5M, > $25M 14‑day volume), maker fees may drop to zero or even negative — meaning you earn net rebates.
For instance, in the base tier, taker fee = 0.045%, maker = 0.015%. At higher tiers, maker fees can go to 0% or negative.
Real-World Rebate Farming Example
A known example: a trader reportedly turned $6,800 into $1.5 million via a delta-neutral, rebate harvesting strategy on Hyperliquid—collecting rebates from maker activity aggregated over enormous volume.
That success illustrates how rebate farming, when executed precisely and at scale, can generate substantial returns even with narrow margins.
Market Making on Hyperliquid
Hyperliquid has no special “designated market maker (DMM)” program; anyone may act as a market maker.
The absence of preferential maker roles or backend latency advantages means automation, efficiency, and execution are key differentiators.
Given that rebate payments are real, continuous, and accessible, the incentive to farm them is concrete—not theoretical.
3. Why Rebate Farming Appeals to Pro Traders
What makes rebate farming attractive—especially on protocol like Hyperliquid when combined with automation?
3.1 Yield on Idle Capital
Rather than leaving capital sitting, rebate farming lets capital work by providing liquidity and capturing micro-spreads and rebates.
3.2 Lower Beta, Predictable Returns
The goal is often neutral directionality—you’re not betting on price, you’re betting on being paid to quote.
Even in sideways or low-volatility markets, you can harvest yield.
3.3 Scalability & Leverage
As you scale, the volume increases; rebates compound.
In Hyperliquid’s architecture, order churn doesn’t cost gas (for order actions), making high-frequency quoting economical.
3.4 Democratization of Maker Returns
In traditional markets, maker rebate strategies were reserved for institutions with ultra-low latency. Now, with DeFi and automation tools like Coinrule, smaller traders can participate in rebate yield harvesting.
But success depends on execution efficiency, fill rate, and cost control. That’s where Coinrule’s limits.trade becomes powerful.
4. What Coinrule’s limits.trade Brings to the Table
What makes limits.trade so relevant to rebate farming is that it automates maker-only order logic in a smart, adaptive way. Here’s how it supports rebate harvesting:
4.1 Maker-Only Order Execution
limits.trade ensures orders are only ever placed as maker (liquidity-adding) orders. You are never forced into taker behavior, preserving rebate eligibility.
4.2 Chase / Replace Logic (LFG Style)
If the market moves, limits.trade cancels and reissues your limit order within a set deviation. That means your maker order stays competitive and alive, improving fill probability without sacrificing rebate status.
4.3 Non-Custodial Signing
Coinrule + Hyperliquid integration permits you to connect your wallet and sign orders locally—Coinrule doesn’t take custody or store private keys.
This approach fits the DeFi ethos and reduces counterparty risk.
4.4 Automation + Strategy Layering
You can wrap limits.trade with condition logic, volume filters, volatility filters, risk controls, or hedging layers—so your rebate farming is smarter, not just mechanical.
4.5 Fee Tier Acceleration
Because more maker volume contributes to your 14-day rolling volume, continuously farming rebates can elevate your tier quickly, pushing your maker fee toward zero or a negative rebate. The compounding impact of more favorable fees further boosts yield.
In sum: limits.trade automates what would otherwise be a manual, maintenance-heavy rebate farming system—at a level accessible to many traders.
5. Sample Strategy Workflows
Example A: Dual Quote Maker Farming
1. Trigger: Market is stable, spread ≤ threshold
2. Then: Place maker buy and maker sell limit orders via limits.trade with ±0.1% chasseable buffer
3. If either order fills:
a. Rebalance opposite side to maintain delta neutrality
b. Re-issue new maker orders
4. If market volatility > threshold: withdraw orders (pause)
5. Continuously Keep 2–3 orders per side alive for maximum fill probability
This strategy captures rebates on both sides, and maintains neutral exposure.
Example B: One‑Sided Maker Farming with Trend Overlay
1. Trigger: Price above moving average + volume > threshold
2. Then: Place maker buy order via limits.trade; don’t place sell order
3. If full fill, optionally scale out or hedge with a taker order
4. Withdraw order when momentum reverses beyond the threshold
This lets you pursue rebate yield while still having mild exposure to trend upside.
Example C: Momentum / Rebate Hybrid
Use limits.trade for passive quoting most of the time
If trend breaks a threshold, switch mode to momentum trade (market entry)
After momentum trade, resume rebate quoting with hedge
This hybrid model blends yield capture with directional alpha.
6. Key Metrics, Risks & Trade‑Offs
No strategy is without trade-offs. Here’s what you must track and guard.
Important Metrics
Fill Rate vs Replacement Count: How many cancels before fill? You want efficient execution.
Net Rebate Yield: Rebates earned minus slippage and spread cost
Time in Book: How long your maker orders rest before fill
Volume / Liquidity Usage: Are you quoting in deep enough markets?
Tier Progression: Are you moving toward better fee tiers?
Risks & Trade-Offs
Slippage / Spread Loss: If your maker limit is too aggressive, you may still concede value.
Over-chasing: Replacing too often leads to churn and lost execution opportunities.
Volatility Risk: In fast moves, your quote may fill and then reverse.
API / RPC Lag: Delays in cancel or reissue lead to bad fills.
Capital Lock: Positions may remain open longer than intended under partial fills.
Fee Tier Cliffs: Sudden drop in volume may push you down a tier, increasing your costs.
Good rebate farming requires tight discipline and constant feedback loops.
7. Implementation Guidance & Best Practices
Here’s how to operationalize rebate farming with Coinrule + Hyperliquid.
Connecting Hyperliquid to Coinrule
In Coinrule, select Hyperliquid Perps in the exchange list
Click “Connect Wallet” and sign two transactions to allow trade and builder permissions (Coinrule never holds funds)
Fund your Hyperliquid perp wallet and ensure you have margin capital
Setting Up limits.trade Orders
In your rule builder, choose the action “Place maker-order using limits.trade”
Define your chase deviation (e.g. ±0.2%): how far price can move before re-issuing
Define order size, maximum replacements, cooldown periods
Combine with conditions: e.g. “only trade when spread < x% and volume > Y”
Monitoring & Adjustment
Track metrics in dashboard: fill %, replaced orders, net rebate vs slippage
Adjust buffer widths and frequency based on live behavior
Introduce pause logic on high volatility or large price swings
Use statistical backtesting before large capital deployment
Starting Small & Scaling
Start with one pair (e.g. BTC/USDC) with modest capital
Evaluate performance for 1–2 weeks
Scale to multiple pairs gradually—ensure your systems (RPC, tracking, cancellation) scale too
Fail-safes & Safety Nets
Max replacement limit per minute
Kill-switch if cumulative slippage > x%
Dynamic withdrawal logic in trending markets
Use range filters or volatility filters to disable quoting during unpredictable regimes
8. Scaling & Multi‑Pair Farming
Once you prove your strategy works on one pair, scale to more:
Use portfolio logic: distribute capital to pairs by liquidity, volatility, spread.
Use rotating quoting: cycle quotes across pairs to reduce resource usage.
Monitor global performance rather than per-pair metrics.
Watch out for cross‑pair correlation: a crash in one may drag others.
Also, keep your updates lean — too many replacements across many pairs may saturate RPC or your wallet.
9. Conclusion & Paths Forward
Maker rebate farming is more than a strategy—it’s a way to monetize liquidity provision rather than purely directional bets. With Hyperliquid’s continuous maker rebates and tiered fee structure, and with Coinrule’s limits.trade automations, you can build rebate-harvesting systems that scale, adapt, and outperform static market timing.
This approach isn’t risk-free. Execution discipline, real-time monitoring, buffer tuning, and safety logic are essential. But for those who get it right, the yield from rebates can compound into a real edge.
If you like, I can generate Coinrule rule templates for rebate farming strategies or Python/JavaScript bot skeletons compatible with limits.trade logic. Do you want me to build those now?
Start building your strategy with Coinrule now
