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 wstETH to one of the vaults. When depositing, user receives and LRT, which are amphrETH, re7LRT, steakLRT, rstETH.

For every hour this N wstETH stays in a vault, the address holding an LRT gets N points. Here's breakdown of what does these points consist of. The depositors who deposited before Symbiotic limits were reached (block 20070701) will receive the same amount of Symbiotic and Mellow points as it was assumed, 1x + 1x of both.

The depositors 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 for using DeFi integrations. Points are given to the user are proportional to the total points emission on LRTs currently in the pool. For that reason, the ratio of points given out is constantly changing. To compensate for less points due to LRTs currently not staked in Symbiotic, there often is a Mellow multiplier, however.

Gaming the Loyalty Points program — 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.

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:

• Makes curating vaults more profitable and therefore more attractive • Aligns risk curators with the success of Mellow • Encourages them to focus on providing the best product for users rather than direct revenue (thus encouraging lower fees) • Provides them with resources to participate in future governance of Mellow LRTs