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.

  • Read more about Liquidium points here.

Seasons

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

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

  • Read more about Seasons here.

Resetting Points

  • Reset Mechanism: Points are reset at the end of each cycle, promoting continual platform engagement. The total points across all seasons and previous seasons are still visible on the leaderboard.

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 that are eligible to redeem for tokens.

  • If a borrower does not repay the loan, the borrower does not earn 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 the loan.

Example

  • Total Cycle Reward: 1,500,000 Liquidium Tokens.

  • User's Points: 10,000 points.

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

  • User's Reward: 3 Tokens

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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