PumpBTC Points Explanation
Last updated
Last updated
Earn points simply by holding $pumpBTC. Our point system rewards you for the duration of your token ownership.
Base Point Calculation:
For every $pumpBTC token you hold, you earn 1 point per second (Base Speed).
This translates to 300 points for each $pumpBTC token held over 5 minutes.
Point Boost System:
In addition to the base speed, PumpBTC has introduced a point boost system to reward users who engage more deeply with the platform. Currently:
Curve Pool LP Token Boost: Points = Base Speed × 4 × LP token quantity
Pancake Pool LP Token Boost: Points = Base Speed × 4 × min(token0 quantity, token1 quantity)
Uniswap Pool LP Token Boost: Points = Base Speed × 4 × LP token quantity
Zircuit Boost: Points = Base Speed × 2 × deposited $pumpBTC quantity
ZkLink Boost: Points = Base Speed × 2 × deposited $pumpBTC quantity
Pendle Boost：
LPT: Points = Base Speed × 2 × deposited $pumpBTC quantity
PT: Points = Base Speed × 2 × deposited $pumpBTC quantity
YT: Points = Base Speed × 8 × deposited $pumpBTC quantity
For example:
If you hold Curve Pool LP tokens, your point accumulation would be: 4 × Base Speed × Number of LP tokens
This system encourages not only long-term holding of $pumpBTC, but also active participation in liquidity provision. By engaging in both, you can significantly accelerate your point accumulation.
Curve LP Token Boost:
The Curve Pool offers a 4x point multiplier. When you add liquidity to the Curve Pool, you receive LP Tokens.
If LP Tokens are transferred from user A to user B, B would start accumulating points, while user A loses the ability to earn points from those transferred tokens.
Maintaining a balanced ratio between $pumpBTC and $WBTC/$BTCB in the Curve Pool is critically important. Significant deviations in the exchange rate can adversely affect LP token holders, potentially leading to impermanent loss. Such imbalances could offset or even outweigh the benefits gained from accelerated point accumulation.
A stable, balanced pool is essential to ensure that the point accumulation mechanism remains beneficial for all participants. It prevents scenarios where the costs of providing liquidity exceed the rewards, thus maintaining the attractiveness and sustainability of the ecosystem.
PumpBTC aims to maintain price equilibrium in the Curve Pool through public market operations:
PumpBTC stakes $BTC into Babylon through Cobo Custody.
When the price ratio of $pumpBTC to $BTCB or $WBTC falls below 0.95:
a. PumpBTC mints 1 new $pumpBTC token when someone stakes 1 $BTCB/$WBTC.
b. By using $WBTC/$BTCB, PumpBTC buys 1 $pumpBTC on Curve.
c. The purchased 1 $pumpBTC is then burned.
This open market operation provides crucial support to the value of $pumpBTC by generating buying pressure, thereby driving the exchange rate closer to equilibrium at a 1:1 ratio. This is achieved while ensuring the 1:1 pegging ratio between the total supply of $pumpBTC and staked $WBTC/$BTCB
Through these operations, PumpBTC actively works to stabilize the token price and maintain the ecosystem's integrity, benefiting all Curve Pool participants.
Pancake LP Token Boost:
For Uniswap V3 type pool, users can provide liquidity for different tokens at various price ticks. To ensure fairness, PumpBTC has implemented specific rules for point calculation.
PumpBTC only awards points for LP tokens where both token0 > 0 and token1 > 0. This restriction is in place to prevent users from gaming the system by adding liquidity at extreme price ranges that are unlikely to be utilized in trades. Therefore,
Points = Base Speed × 4 × min(token0 quantity, token1 quantity)
We determine the number of LP tokens considered for point calculation by taking the minimum value between token0 and token1 quantities.
For each eligible LP token held, PumpBTC provides an 4x point boost.
For example, If a user provides liquidity with 100 of $pumpBTC and 80 of $WBTC, the system will consider them as holding 80 LP tokens for point calculation purposes. Their point accumulation for this position would be: Base Speed × 4 × 80
By implementing this system, PumpBTC aims to align user incentives with the health and efficiency of the liquidity pool, ensuring that the boost mechanism benefits both the individual participants and the overall ecosystem.
