Points

Earning Points

  • How to Earn: Users accumulate points through lending and borrowing activities.

  • Calculation Basis: Points are primarily based on the volume of loans, with other factors potentially influencing point allocation.

Cycles

  • Cycle Duration: Each cycle corresponds to a two-month period.

  • Point Tallying: Points earned by users are counted at the end of each cycle.

Resetting Points

  • Reset Mechanism: Points are reset at the end of each cycle, promoting continual platform engagement.

Ruleset for Points

  • If a loan duration is under 5% of the Loan Duration Utilisation (the portion of the loan term that transpired before maturation date), neither the lender or borrower earns points.

  • If a borrower does not repay the loan, the borrower does not receive points. The lender will receive points at loan expiration.

  • Points are earned for both borrowers and lenders when a loan is repaid, provided the 5% Loan Duration Utilisation threshold is met.

  • This ruleset is in place to reduce the impact of undesirable activities. Key among these undesirable activities are:

    • Engaging in wash borrowing and lending solely for the acquisition of tokens (token farming).

    • Failing to repay loans.

  • These activities undermine the health and trustworthiness of the lending environment and, therefore, should not be incentivized within the points campaign framework.

Point Conversion to Tokens

  • Distribution Method: At the end of each cycle, a predetermined amount of Liquidium Tokens is allocated based on the points earned.

  • Calculation Formula:

  • Other Conditions: If borrowers do not pay back their loan, they will not earn points. Points are earned by both lenders and borrowers at the end of a lending cycle.

Example

  • Total Cycle Reward: 100,000 Liquidium Tokens.

  • User's Points: 10,000 points.

  • Total Points Earned in Cycle: 5,000,000 points.

  • User's Reward:

Token Rewards

  • Seasonal allocations: There are three initial seasons in total, each lasting 2-months. The first season will have 1.5% of the token supply allocated to it. This rate may change across each season.

  • Regulatory: Due to regulatory concerns, US users will not be eligible for the seasonal allocations.

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