Loyalty Points
Mellow believes that early adopters play a significant role in the growth and success of the ecosystem. Therefore, through the points program, we want to recognize and reward healthy engagement from community members and partners.
Loyalty Points logic for users
Restaked vaults
Consider a user who just deposited N USD in one of the vaults. When depositing assets like (w)stETH, (W)ETH, wBTC, tBTC, ENA and sUSDE into Mellow LRT vault, user receives some LRT.
For every hour these N USD stay in a vault, the address holding an LRT gets 0.00025*N Mellow points. As a general rule, loyalty points are updated hourly. Here's breakdown of what do these points consist of.
All users receive the same amount of Symbiotic and Mellow points as it was assumed, in contrast to what may have been in some cases before Migration to Symbiotic vaults. To access old methodology, please head over to Points in Symbiotic pre-deposit contracts.
On top of Mellow points, users also receive points from other protocols, including Symbiotic points. Users of Mellow vaults get pro-rata symbiotic points from two sources, pre-deposit vaults and vaults with slashing. For more info on Symbiotic points in vaults with slashing, check: https://docs.symbiotic.fi/points-season2/. Mellow redistribute all partner points in a fair proportional manner without taking a cut.
Decentralized Validator Vault
Points from Obol (currently discontinued) and SSV will be updated on a twice a month basis, while Mellow point updates will be reflected once an hour. Points from Obol and SSV for users are calculated based on ETH placed in the Vault, which is used for validators within the Lido Simple DVT Module (SDVTM). Note: a proposal to the SSV DAO is in progress to re-direct points related to Lido to the Vault. If passed, the first update for SSV points will take place no later than 30 days after the Vault launch, whereafter it will continue on a twice a month basis.
ETH in the Vault will be staked to the Lido on Ethereum protocol when stake will not be used for withdrawals and there are available depositable keys within the Simple DVT Module. Capacity of the vault will be increased to match the total available capacity of the SDVTM, plus an up to 10% buffer.
To dissuade possibly harmful effects to the Lido on Ethereum protocol, cross-team analysis will be conducted on Vault participants, and certain potentially abusive actions may render the user completely or partially ineligible for consideration for points.
In order to be eligible to potentially receive Obol and SSV incentives for the capital provided, Vault participants must:
Hold a position for a minimum of 3 days in the Vault through the conclusion of the Snapshot period. Every two weeks from the launch of the vault a Snapshot will be taken after which point totals will be updated.
Not unstake existing stETH or wstETH that is then re-staked via the Vault from the moment of the Vault launch. The incentives are calculated based on ETH staked to and persisting within the Vault during the relevant snapshot period minus any stETH withdrawn after the launch of the vault.
Not dispose of (or swap) existing stETH on DEXs/CEXs: this condition does not expel a staker from all incentives but reduces the corresponding amount of capital provided by the volume of disposed ETH. Similar to the above, the incentives would be calculated based on non-swapped ETH staked to and persisting within the vault during the relevant snapshot period.
Loyalty Points logic for curators
Curators serve as the primary intermediary between the restaking middleware and passive restakers. Mellow plans to aid LRT curators to launch permissionless LRTs with deployment, maintenance, DeFi integrations and Loyalty Points Offering Loyalty Points to Mellow curators is strategic because it:
ā¢ Makes curating vaults more profitable and therefore more attractive ā¢ Aligns risk curators with the success of Mellow ā¢ Encourages them to focus on providing the best product for users rather than direct revenue (thus encouraging lower fees) ā¢ Provides them with resources to participate in future governance of Mellow LRTs
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