Is there any better way to celebrate summer and the longest day of the year than a giant pool party? Starting June 20th, Loop’s Pool Points Party kicks off the next era of the Restaking Credit Hub.
Quaaloops are fun coupons! They represent the value of your contribution to the Loop protocol. Quaaloops correlate with actions that help the protocol and entitle participants to an Airdrop at the LOOP token launch. With no VC allocation, the rewards prioritize you.
Sell me this pen:
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There are 3 epochs, two before protocol launch, one after.
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At TGE, 7% of the supply will be distributed among the participants.
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On top, 1% is distributed to the Liquid Restaking project winning the Loop Olympics.
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20% Referral Bonus. No more rookie numbers.
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No VC allocation; yes, we said it twice.
Introduction
The Pool Points Party is designed to build and sustain borrowable liquidity for the Loop protocol by encouraging users to deposit Ethereum (ETH) and Liquid Restaking Tokens (LRT). The program rewards participants with Quaaloops based on their contributions, distributed hourly to promote early and sustained participation.
The Pool Party also features a referral system. When a deposit is made using a referral link, the user who provided the referral receives 20% of all Quaaloops awarded to the depositooor.
The Points Program operates in phases, known as epochs, which are structured to gradually enhance participant engagement and deepen protocol liquidity as the roll-out of the protocol progresses.
The Epochs
In Epoch 1, you are rewarded for depositing ETH and LRTs along with participation in the referral program. Withdrawals of deposits are enabled but result in a 50% slashing of the points generated by that asset. Among Restaking Protocols, there is the Loop Olympics with the first prize of a 1% LOOP Airdrop. But more on that in an upcoming blog article.
In Epoch 2, you can convert your existing deposits to WETH and mint lpETH at a 1 to 1 ratio. You now get points simply for holding lpETH. Withdrawals are disabled and replaced by trading lpETH on DEXes. If you provide liquidity on a DEX and lock lpETH-ETH LP tokens on Loop, you get a large points multiplier.
With the initiation of Epoch 3, the protocol launches. You now can earn Quaaloops for all actions on the protocol: Looping Pendle Restaking LP Tokens, lending ETH and holding the receipt token lpETH, staking lpETH to earn interest, providing liquidity for lpETH, locking lpETH to forfeit yield but maximize points.
The Token Launch
6 months after launching the protocol or after reaching $100M in TVL (whichever comes first) this third epoch ends and the LOOP token launches with an Airdrop.
7% will be Airdropped with a linear conversion among all participants. Only the largest wallets will be prone to a vesting schedule over 6 months with a 50% unlock at TGE.
With the token launch, the protocol unlocks its final form and goes super saiyajin. 20% of all revenue captured flows directly to the users that lock the LOOP token as liquidity in the dLP. Loopers maintaining a dLP value exceeding 5% of their Total Position Size qualify for LOOP token emissions to offset borrowing costs incurred from leveraging. This way, demand is created and only protocol aligned users receive token emissions.
Closing Statement
We are in an era of predatory tokenomics, where upside value is almost exclusively being captured in private rounds by VCs and early angel investors. These groups are able to move money from retails pocket into their pocket at every launch thanks to the high FDV/low float paradigm that has plagued the 2024 cycle so far. The market needs tokens valued fairly at launch with a reasonable float/supply, reasonable liquidity and a chance for retail investors - the real users and supporters of the projects - to get early access too.
With the Pool Points Party we flip the script.