The Points Program

Overview

The Loop protocol's kickstart requires liquidity (i.e., ETH) which will be sourced from the Loop Points Program. The Points Program incentivizes users to lock ETH or Liquid Restaking Tokens (LRT) into the protocol. In exchange, users earn points. These points are distributed hourly across all depositors to incentivize early locking.

In addition, the program incorporates a referral system. If a referral link is used to make deposits (e.g., ETH or LRT), the referral mechanism allows the referee to earn 20% of the points given to the depositor.

The benefits for the participants are the following:

• Get a share of the Airdrop.

• Get a chance to be on the Whitelist for the Public Sale.

• Get a guaranteed Waitlist spot for the Public Sale if the Whitelist does not reach the hard cap.

Epoch 1 and Epoch 2

The points program is structured in multiple epochs. In the first epoch, users solely get points for depositing ETH and LRTs and participating in the referral program.

With the initiation of Epoch 2, participants can claim their lpETH and get additional Loop Points for holding lpETH. This claiming transaction automatically converts their deposited LRTs to ETH, later used for Loopers.

Epoch 2 unlocks another way to earn points: providing liquidity for lpETH. Users who provide liquidity for lpETH and lock the respective LP tokens with Loop, earn a points multiplier compared to just depositing ETH/LRTs and holding lpETH. This ensures deep liquidity for lpETH.

Frequently Asked Questions

What happens after the Points Program has concluded?

All deposits are converted to ETH to be liquidity for Loopers (borrowers). For every ETH deposited, you get lpETH at a 1:1 rate. This lpETH can then be used across DeFi, i.e., provided as liquidity on a DEX, sold back for ETH, staked to receive Loop protocol revenue or maybe even used as collateral on secondary markets.

Who gets selected for the Whitelist?

The Whitelist spots are raffled out at random. The more points an address has, the higher the chances to be selected. Whitelist valuation is equal to TGE valuation.

Do I also get Eigenlayer and LRT Points?

Yes, if you deposit an LRT, you also get the respective LRT- and Eigenlayer points. Please note that once you mint lpETH, your LRTs are converted to ETH and you stop earning the other points.