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:

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 this N USD stay in a vault, the address holding an LRT gets 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 user buys LRT from a liquidity pool, he receives LRTs that are not staked in Symbiotic, if there is any. When user buys more LRT that d

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.

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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