Buying points
In simple terms, how can I buy points?
Bob wants to buy points, so he buys Point Tokens from Univ3
Value: Bob can now easily increase his point exposure without needing the same capital requirements
⌛ (Some time passes) ⌛
Point issuer announces an airdrop and conversion from points to their native token
Rumpel converts its points for reward tokens and holds them for Point Token holders to redeem
Bob redeems his Point Tokens for his share of reward tokens
What's the return?
Directional long exposure to a points program, which is a function of project quality, and its anticipated reward token.
What's the risk?
Point token volatility - You buy a point token at some price, and then it drops in value.
Risks that can exacerbate a Point Token’s volatility include: Point Oracle risk, Malicious Admin risk, Point Deletion Risk. Details on each risk.
Redemption risk - Point tokens redeem for a smaller airdrop than their offchain points
Risks that can exacerbate a point token's redemption risk: Airdrop Claiming risk, Airdrop Diversion risk. Details on each risk.
How-to-Buy-Points Guide
The Rumpel App is a good river guide at the moment.
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