$LIQ - Points

Earning Points

How to Earn

Users accumulate points through lending and borrowing activities.

Calculation Basis

Points are primarily based on loan volume, with other factors potentially influencing point allocation.

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.

Resetting Points

Points reset at the end of each cycle, promoting continual platform engagement. Total points across all seasons and previous seasons remain visible on the leaderboard.

Ruleset for Points

• If a loan duration is under 5% of Loan Duration Utilisation, neither lender nor borrower earns points eligible to redeem for tokens.
• If a borrower does not repay the loan, the borrower does not earn points.
• Points are earned by both borrowers and lenders when a loan is repaid, provided the 5% Loan Duration Utilisation threshold is met.

This ruleset reduces the impact of undesirable activities such as wash borrowing, token farming, and failing to repay loans.

Point Conversion to Tokens

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

User's Token Earnings = (User's Points for the Season / Total Points for the Season) x Total Token Rewards for the Season

Example: with a total cycle reward of 1,500,000 tokens, 10,000 user points, and 5,000,000 total cycle points, the user reward is 3,000 tokens.

Due to regulatory concerns, US users are not eligible for seasonal allocations.