Season 1 - The Rising
Malda Points are the foundation of Malda’s incentive system in Season 1. Users earn points for meaningful participation to the protocol; depositing and borrowing assets, referring new users and contributing to early-stage growth.
This document outlines how Malda Points are earned & boosted.
Depositing Assets
Depositing assets to any Malda market earns 1 point per $ value, per day.
Deposit positions must be active for at least 24 hours to start accruing points. Points earned even if collateral if activated or if it is not.
All markets earn the same base rate, though individual market multipliers may apply during campaigns or updates to protocol goals.
It is important to note that deposits in a pool from recursive borrowing (same asset is supplied, borrowed and then supplied again) do not qualify for same amount of points. While both are eligible for points, same-asset looping is handled differently due to its the lower value brought to the protocol. More details under the Same-Asset Looping section.
Borrowing Assets
Borrowing assets yields 2.5 points per $ value, per day.
Borrow positions must also remain active for more than 24 hours to accrue points.
Borrows are the revenue engine of a lending protocol, as a result borrowers will see increased incentivization. Borrows positions must also be active for 24 hours to start accruing points.
Borrowing the same assets as deposits are handled differently, and do not quality for the same amount of points.
Same-Asset Looping
Having an active, same-asset recursive borrow rewards 0.15 points per loop, per $ value, per day.
Collateralization and borrowing against a single asset can be repeated multiple times without providing much economic value, so will ultimately earn less points. Example of same-asset looping: Deposit USDC, borrow USDC, take that borrowed USDC and deposit it again. Repeat.
It is important to distinguish this same-asset looping from leveraging - which is unaffected by reduced points and earns points normally for depositing/borrowing. Leveraging happens when an asset is deposited, another is borrowed, swapped to deposited asset and repeated. This adds leverage to your position, and will continue to earn base points highlighted in Depositing Assets and Borrowing Assets. Example: WETH is deposited and USDC is borrowed. The borrowed USDC is then swapped to WETH and deposited again.
Referral Program
Earn bonus points by inviting others to Malda. This mutually beneficial system is designed to reward early advocates.
Referrer: Receives 10% additional points based on earnings of the referred.
Referee: Also receives a 2% boost to their points earnings.
Point Boosts
Users can earn additional point boosts or Malda points.
Testnet Awakening NFTs
Holders of an Awakening NFT will get an opportunity to increase their booster to Malda Points earnings further.
Position Migration
Those with open deposit and borrow positions on Mendi will be able to migrate their positions to Malda. This process will be incentivized with Malda Points, as well as $MENDI rewards.
Positions migrated from Mendi gets up to 50% boost to Malda Points earnings. The boost amount is determined by the size of lending position and duration it was active for.
Position migration will be available after mainnet launch on a simple UI.
Staking $MENDI
All $MENDI stakers receive a points boost up to 50% (reached at 500k $MENDI staked). A time-weighted average stake before and during Season 1 will be used to determine the final multiplier.
Upcoming Campaigns
Expect exciting campaigns throughout Season 1, with opportunities to earn both points and points boosts!
On top of all this, we will be exploring different methods to attract new, multi-chain users - as those are the ones expected to show the strongest retention rates.
Malda Mentions
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