🔺Loyalty Points
How do loyalty points work on ether.fi?
This will address Loyalty Points as they relate to eETH/weETH only. With regards to ether.fan, Loyalty Points will continue to accrue in the same way they always have. For more, see ether.fan Loyalty Points. One other important clarification is that ALL LOYALTY POINTS (from ether.fi or ether.fan) ARE THE SAME. This includes Loyalty Points earned from the Early Adopter Pool, ether.fan, eETH and weETH. A point is a point. There are simply just some more nuanced use cases for them in ether.fan that relate to the gamified environment that the community has created, and we envision the same for eETH as we continue to hit on our roadmap.
Points szn - Ether.fi x EigenLayer
eETH/weETH holders will earn EigenLayer points in addition to ether.fi Loyalty Points, as ether.fi will be restaking on EigenLayer. The protocol will be remitting 100% of these points received to eETH holders from day 1, and displaying stakers allocation of the EigenLayer points in their dashboard.
To clarify,
The protocol will pass 100% of points and any benefits from points to users and will not withhold ANY points
The points you see in your dashboard is an estimate that accounts for the point delay in activating a natively restaked validator, as points only begin to accrue once the validator is active on the beacon chain. This variation can range from 10-20% depending on the volume of ETH inflow into the protocol on a day.
The protocol only grants points based on your eETH/weETH balance, in your wallet or in an LP/vault, and the amount of eETH you have can fluctuate if you're in an LP. See Integrations - Points for further details of each integration.
Lending protocols + Eigenlayer points
For certain borrow/lend protocols, including Aave, Ionic, Radiant, and Silo, please be aware that Eigenlayer points earned on the lending side are proportional to the portion of the pool that remains unused (i.e., not lent out to borrowers). This means that the fewer funds are borrowed from the pool, the higher the percentage of Eigenlayer points that lenders will earn.
Example:
Let's say you deposit 100 Ethereum (ETH) into a lending pool with a maximum Loan-to-Value (LTV) ratio of 80%. This means up to 80 ETH can be lent out to borrowers, leaving 20 ETH as a buffer. If only 30 ETH is lent out, 70 ETH remains unused in the pool. In this scenario, because a larger portion of the pool (70 ETH) is not being utilized, lenders earn a higher percentage of Eigenlayer points based on the unused amount.
We recommend all users review their lending positions and understand how the utilization rate of the pool affects their rewards.
Where will Loyalty Points be displayed.
They are shown on the ether.fi Dapp once you connect your wallet. These points will accrue in real time.
What can I do with Loyalty Points?
Loyalty Points will play a role in decentralized governance. Stay tuned for more 👀
How to earn Loyalty Points.
The easiest way is to simply stake your ETH on ether.fi. As we continue to rollout our partnerships and integrations, we will implement programs for users to begin earning additional points for LP’ing into DeFi protocols that we integrate with, referring frens, quests to L2’s, etc. etc. Please be aware that you will only continue to earn Loyalty Points if your wallet is holding eETH, weETH, or if you have followed one of the ecosystem paths that we have provided in our official ecosystems page.
Loyalty Points Formula:
Season 1 Rules:
Staking .001 Ether, earned you 1 points / day.
This simply meant that loyalty points earned = ETH staked * 1000* days staked
Example: If you had 5 ETH staked for 6 days, you would have received 30k loyalty points (5 * 1000 *6) 💪
For our whales, there was a sizeable cap on total loyalty points earned of 10¹². Season 2 Rules:
For Season 2, all points earned after March 15th will now receive an automatic 10x boost!
This means staking .001 Ether now earns you 10 points / day
To put it simply, Season 2 loyalty points earned = ETH staked * 10000 * days staked.
Example: If you have 5 ETH staked for 6 days, you will now receive 300k loyalty points (5 * 10000 *6) 💪💪💪
Please note that this equation does not include potential multipliers such as StakeRank and DeFi integration boosts.
Season 3 Rules:
For Season 3, all points earned after June 30th will continue to receive the season 2 10x boost!
This means staking .001 Ether now earns you 10 points / day
To put it simply, Season 2 loyalty points earned = ETH staked * 10000 * days staked.
Example: If you have 5 ETH staked for 6 days, you will now receive 300k loyalty points (5 * 10000 *6) 💪💪💪
Please note that this equation does not include potential multipliers such as DeFi integration boosts.
Can I lose my Loyalty Points?
No. You will not lose any of your Loyalty Points in relation to your eETH / weETH. They will simply stop accruing if you no longer hold these assets in your wallet. As mentioned, once turned on, activities such as LP’ing into various protocols and moving your ETH to L2’s will also continue to generate you Loyalty Points. Join the discord for updates on this rollout as eETH becomes composable throughout all of DeFi.
Risks Involved with Points Earned from Liquidity Pools (LP)
Please note that the point tracking ratio on liquidity pools is always changing. Points are given to the pool based on the ratio of our token (weETH) to another token(s) in the pool. For that reason, the ratio of points given out is constantly changing. To compensate for less points, there may be a boost; please take all of this into consideration if you are trying to maximize points.
Loyalty Points for Operation Solo Stakers, Bond holders (B-NFT’s) and 32 ETH Stakers
These members are pivotal pieces of our ecosystem and we want to ensure we recognize them as such. Rest assured we have extra boosts and acknowledgements for the foundational backbone of the protocol and Ethereum network. More to come on this for your service. 🫡
Can I transfer my Loyalty Points?
No.
Badges
Badges are a way to collect additional loyalty points by performing certain actions. You can collect the "eETH Luminary" badge by minting eETH during our launch and whitelisted period. Or if you've held your ether.fan NFTs till now, you will be able to unlock one or more of the ether.fan badges. We are constantly adding more badges for various events! See our badges page for more info.
Points Incident of Feb 13-Feb 21
We take points very seriously and we know you do as well, for that reason we are documenting the events of the past week, explaining why we've been changing the underlying infrastructure and how some errors were introduced during the migration.
When we initially built our initial points system, it was within the span of a few days and many late nights, we imagined having 1 or 2 DeFi integrations a month and a relatively small amount of traffic, since the initial version was generally keeping up we didn't think much of it until things started picking up this year and DeFi integrations are now being added every week.
We kicked off on our journey to build a new and improved service that syncs all the degen data on the blockchain where eETH is being used, this service is much faster at syncing everything from scratch and has better recovery built in, in case of failure.
We proceeded to deploy this new service on 13 Feb 2024 and did some testing after which we got really excited and released it into the wild, we were also excited because we knew this new service would increase the points in a lot of valid cases, since the previous service had downtime and did experience some errors that we noted quite a while back, causing some distribution failures.
The only thing we missed was that unfortunately the UI still had older logic in place where points being calculated in a specific way related to the old service but not account for the new service, this affected EigenLayer points and ether.fi loyalty points, causing a very unfortunate bug where points for DeFi integrations were being double counted and showing another 2x boost on top of already boosted point generation 😱
We initially deployed the first fix for this 16 Feb 2024 believing only EigenLayer points were affected, but during testing with our beta-tester group on 20 Feb 2024 for the latest release for new DeFi integrations, we came to the conclusion that the bug affecting EigenLayer points also affected ether.fi loyalty points, were are deploying a fix for this today, 21 Feb 2024.
TLDR
A new points service was released recently and while the points service is much improved on the previous version, a UI bug caused some points to be double counted.
This has now been resolved, and all points should now reflect correctly. For many ether.fi users that saw their points increase at a double rate during that time period will see a significant point reduction in their dashboard.
To give greater transparency moving forward, we are working on a points history view in the dapp that will display points as they are earned over time.
Apologies to all either.fi members impacted by this display issue.
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