In a significant stride toward further incentivizing and democratizing DeFi, mrgn points are now live on app.marginfi.com/points. The advent of mrgn points revolutionizes user engagement by providing a quantitative metric to the question of how much a user has contributed to the mrgn ecosystem's success.
Understanding mrgn Points
mrgn points are a reward system built into the mrgnfi ecosystem. Currently, points can be earned in three ways on the mrgn lending platform, mrgnlend. As the mrgn ecosystem expands and diversifies with new products, additional avenues for earning points may be introduced.
Importantly, all points are equivalent in value, but some user actions have a higher potential for point earnings than others. This means 1 lending point equals 1 borrowing point, but borrowing points can be earned with less capital investment.
Earning Lending Points
Every user with active deposits on marginfi has been seamlessly earning lending points in the background. For every dollar lent, users earn 1 point per day. The concept here is straightforward - the more you lend and the longer your lending duration, the more points you accumulate.
Currently, users who have deposited the most for the longest time hold the majority of the points. However, the leaderboard can shift with any new substantial deposits.
vAmplifying Rewards with Borrowing Points
Recognizing that borrows are critical to the success of a lending protocol and the overall growth of the DeFi ecosystem, borrowers receive more points than lenders. Specifically, for every $1 borrowed, users earn 4 points per day.
Furthermore, the collateral lent to facilitate a borrowing process will count for lending points as well. Hence, borrowers have the unique advantage of earning boosted points from borrowing and also points from lending.
Referral Points: The Network Effect
In an attempt to promote the mrgnfi ecosystem, users can earn points through referrals. A user referring new members will earn 10% of the points the referred users accrue. This does not detract from the referred users' balances; they still earn points at the regular rate.
In a ripple effect, referring users will earn an additional 10% from any points their referred users gain from further referrals. This cascading reward system continues down the referral tree, expanding the user base and rewarding active contributors.
Viewing Your Points and Generating Your Referral Link
mrgn points have been retroactively awarded for all previous mrgnlend activity in accordance with the aforementioned rules. Users can now view their points and get their unique referral links at app.marginfi.com/points.
The introduction of mrgn points marks an important milestone in rewarding user contribution and participation in the mrgnfi ecosystem. By earning points through lending, borrowing, and referrals, users can now gain more than just financial returns. They can earn a quantifiable measure of their influence and contribution to the growing DeFi landscape.