# Prop Desk Playbook

This guide is for prop trading firms with in-house quant and dev resources running spot BTC strategies. It explains how Canton's reward model works, which strategies generate the most value, and what rules apply.

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## How Canton's Reward Model Works for Active Traders

Canton Network rewards are based on **transaction count, not volume.** Every legitimate transaction involving CBTC generates Canton Coin (CC) rewards. For firms already running high-frequency spot strategies, this means your existing edge in execution speed and trade frequency translates directly into CC rewards on top of your trading P\&L.

* No minimum volume thresholds. Every accepted trade counts. Rewards are only generated on transactions accepted by the counterparty.
* Strategies you already run (market making, arbitrage, inventory rebalancing) generate both trading P\&L *and* network rewards.

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## Strategies That Work

Canton's reward model rewards *frequency of legitimate economic activity.* These strategies naturally align with how prop firms already operate.

### Market Making

Quote CBTC/USDXLR or CBTC/USDCx with defined inventory bands. Earn spread P\&L plus Canton rewards on every fill.

### Cross-Venue Arbitrage

Exploit pricing differences between Elk RFQ, Temple CLOB, and Tradefast AMM. Each leg generates a separate reward-eligible transaction.

### Inventory Rebalancing

Rotate CBTC across venues and pairs as part of normal risk management. Every rebalance trade counts toward rewards.

### Directional Spot Trading

Apply existing spot BTC strategies to CBTC pairs. Same directional thesis, additional reward layer.

### Basis Trading

Trade CBTC vs BTC price differentials across Canton and external venues.

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## Venue Selection for Prop Desks

Canton supports multiple venue types. The right choice depends on your trading style, technical stack, and preferred execution model.

### Which venue fits your desk?

**Do you need institutional-size execution with custom pairs?**

* **Elk / Trngle RFQ:** Programmatic OTC, negotiable spreads, bring your own wallet **Do you want an exchange-style order book with the best reward economics?**
* **Temple Digital CLOB:** 40% bonus reward share on top of standard CBTC rewards **Do you want fast deployment with familiar DeFi infrastructure?**
* **Tradefast AMM:** Uniswap V2 style, fastest integration path **Want the simplest starting point to test the waters?**
* **Bron:** Intuitive interface, comprehensive docs, quick onboarding For full venue comparison tables and integration details, see **Selecting a Trading Venue**.

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## Anti-Gaming Rules

> ⚠️ **Important:** Strategies must involve real economic risk. Canton's tokenomics accountability process flags and shuts down scripted back-and-forth transfers (A to B to A) designed solely to farm rewards. If your strategy does not involve swapping into another asset, managing inventory risk, or providing liquidity, it will likely be flagged. Legitimate activity includes: market making, arbitrage, inventory rebalancing, directional trading, lending, and liquidity provision.

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## Getting Started

> 📝 **Ready to start?**
>
> 1. Compare venues in **Selecting a Trading Venue**
>
> 2. Follow the **Onboarding Checklist** from signup to first trade
>
> * [Complete the CBTC Signup Form](https://bitsafe.typeform.com/to/NsiwLKIY)
> * Email: <sales@bitsafe.finance>

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> ℹ️ **Disclosures** Target yields are not guaranteed. Canton Coin rewards depend on network activity, token economics, and market conditions. Strategies carry risk; conduct independent due diligence. CBTC is not available to US persons. This is not investment advice.