Buying points
Last updated
Last updated
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
Directional long exposure to a points program, which is a function of project quality, and its anticipated reward token.
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.
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.
The Rumpel App is a good river guide at the moment.