Chapter 3: League of Lenders

Chapter 3 focuses on our Lending protocol by awarding points to borrowing and lending activity.

In a nutshell: deposits and loans generate points daily. The larger the deposit or loan, the more points it will generate.

To make things interesting we also included some bonuses and boosts you can use to amplify your points and climb the Leaderboard.

Chapter 3 Fast Facts:

  • Duration: from May 28 to August 27, 2024

  • Token Allocation: 3 500 000

Base Points

Once you make a deposit into one of our pools, it will accrue points daily for as long as it stays in the protocol.

Similarly, after taking a loan, the outstanding debt will generate points each day the loan is active (provided it hasn't reached its maturity date).

The amount of points each deposit or loan generates is based on its value in USD. The point-to-dollar ratio is higher for our Public Pools, where incentivizing a healthy utilization rate is crucial.

Pool Boosts

The rules outlined above are merely the basics to keep in mind. You can augment your final earnings by being strategic and taking advantage of the chapter's mechanics – such as the Pool Boosts.

Pool Boosts are a way for us to incentivize balanced Utilization Rates for each of our pools. If, for example, the ETH pool's Utilization Rate is high, it might offer a 10x Lending Pool Boost; if it's low, that same boost might be available for borrowing.

Pool Boosts are applied to your base point earnings directly, before any other multipliers. They also don't affect any earnings outside their scope – if, for example, your ETH deposit is currently benefiting from a Lending Pool Boost, neither your USDC deposit nor your ETH loan's points will be affected.

Deposit Bonuses

Each time you make a new deposit, you'll instantly receive a reward equal to the base points it would typically generate over 7 days. This bonus is not affected by Pool Boosts.

Example: If the ETH Pool currently had a 2x Lending Pool Boost and you deposited 100 USD worth of ETH into the ETH Pool, you'd instantly receive 700 points. Thanks to the Pool Boost, the deposit would then generate 200 points per day.

Loyalty Boost

The Loyalty Boost is the last multiplier to be applied to your points. You can increase your starting 1x value daily, by 0.016 increments, up to a maximum of 2.5x. To do so, you must maintain continuous activity in the protocol by keeping your deposits in their pools (or adding to them) or having at least one active loan.

  • If you withdraw a portion of your deposits, your Loyalty Boost will decrease proportionally to the withdrawn amount. If you withdraw all of your deposits, your Loyalty Boost will reset to 1x. However, you can begin anew with a fresh deposit and incrementally increase it again.

  • If you default on a loan, your Loyalty Boost will reset to 1x and you won't be able to increase it again until the end of Chapter 3.

Penalties for Defaulting

If you fail to repay your loan at maturity and enter its Grace period, you'll lose 50% of the points you earned through that loan. If you default, you'll lose 100% of those points, and your Loyalty Boost will be set to 1x until the end of Chapter 3.

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