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
LRT vaults
Consider a user who just deposited N USD in one of the vaults. When depositing assets like (w)stETH, (W)ETH, 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 points. As a general rule, loyalty points are updated hourly. Here's breakdown of what do these points consist of.
Users who deposited before Symbiotic limits were reached* will receive the same amount of Symbiotic and Mellow points as it was assumed, 1x + 1x of both.
Users who deposited after Symbiotic limits were reached will start receiving Symbiotic points as we will push their deposits into Symbiotic after limits will increase, but before that will get 1.5x boost for Mellow points for the time while their liquidity is idle into Mellow vaults.
Please note that there are multipliers and special calculation scheme for using DeFi integrations. You can check out integrations at https://app.mellow.finance/defi.
Points are given to the user are proportional to the total points emission on LRTs currently in the pool. It means that rate of Symbiotic/Mellow loyalty points are the same for each user of DeFi integration. At the same time, note the that the ratio of points given out is changing with every new deposit into pooled liquidity. To incentivise LRTs usage in DeFi eco and simultaneously compensate for less points due to LRTs currently not staked in Symbiotic, there often is a Mellow multiplier, however.
When a user buys LRT from a liquidity pool, they receive LRTs that are not staked in Symbiotic, if there are any. When the user buys more LRTs than the amount that was not in Symbiotic, they get all those non-staked LRTs and some of the staked ones. The same last-in-Mellow, first-out logic applies to other DeFi integrations even if there are no swaps but some deposit/withdraw mechanics are present.
Gaming the Loyalty Points program ā i.e. using the same LRT to generate rewards multiple times by selling LRT for ETH to repeat the process is not encouraged. If we encounter such cases, we may void you from the multiplier or your Loyalty Points.
*-Initial limit of 41290 wstETH was filled at block height of 20070701 and 210600 ā at 20227052, info on new limit raise fill, be there any, will be added retrospectively.
Decentralized Validator Vault
Points from Obol 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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