Looks like our Meteora Community Calls bring good tidings! SEC approved the first spot Bitcoin ETF after the call in a watershed event for crypto 😀
In this call, Durden, C2yptic, Bennyy, 0xBeni, Geometrica, Carrium, Otto, and Kagren joined us to discuss about the points system for the 10% LP Stimulus Package.
MET DAO is coming
As a community, we will form the MET DAO next week. As Meteora was created to return value to MER stakeholders, MER holders will receive the starting circulating supply (20%) of the new $MET token, based on the snapshot last year.
MET DAO would then vote on the critical 2% DAO Experts, the 10% LP Stimulus proposals, and the proposed Points system, which is expected to take off with the JUP launch.
Meteora LP Points System
We released and discussed an initial plan for the Points system here.
In designing the system, we wanted to highly encourage active LPs to add liquidity and generate fees on Meteora via the more advanced DLMM pools, especially for key pairs such as SOL-USDC. At the same time, we don’t want to alienate more passive LPs, who can also earn points through the Dynamic pools and Multi-token pools.
Points System Summary:
Basic Points Scoring
- 1 point per $1 of TVL per day
- 1000 points per $1 of fees earned
- On all liquidity: DLMM, dynamic pools, multi-token pools
Multipliers
- 1.5x multiplier for LPs if you started LPing on Meteora before Dec 1 and have continued till launch.
- 1.2x multiplier for LPs if you started LPing on Meteora before Points has launched and you continue thru to Launch
- Multipliers are on the wallet, not your LP positions. It will apply to all positions. Every time eligible users earn points, the multiplier is in effect.
- Multipliers would be uncapped initially, and capped at a future date based on performance and community feedback.
Multipliers vs Retroactive Points
Community members in the call were mostly in favour of a forward-looking Multipliers system instead of retroactive points, as a key objective for Meteora is to drive higher TVL, volume, and fees.
Multipliers reward early adopter LPs in a way that incentivizes them to add more liquidity moving forward, since they don’t receive points if they stop adding liquidity. Moreover, a wallet-based Multipliers system has natural anti-sybil properties, further preventing users from gamifying the system to acquire points.
Conversely, airdropping retroactive points, while attractive short term, is much less effective in getting LPs to add and retain liquidity on Meteora.
An interesting idea from community member Flamerunner was turning the multiplier into an NFT, which would enable holders to trade it if they want to. Examples shared by 0xBeni and Bennyy include Zeta Markets’ cNFT program, which users burn to receive a score boost, and Parcl’s NFT, which users can hold to receive points boost. Such NFT initiatives could potentially be an attention boost for Meteora on social media.
Basic Points Scoring: TVL vs Fees
Main discussions centred around what would be a suitable ratio of points between those awarded for TVL and those for fees earned.
Keeping in mind that a core objective is to encourage more active liquidity and higher volume and fees generated, an argument was made that the current proposed system (1 point per $1 of TVL per day, 1000 points per $1 of fees earned) may not relay higher importance to fees, and thus may not sufficiently incentivize LPs to ensure higher volumes and fee generation.
Simple hypothetical example scenario discussed in the call:
- For TVL: If $1,000,000 in TVL = 1,000,000 points through TVL per day
- For Fees: If average 24H fee/TVL = 0.1%, that is equivalent to $1,000 in fees per day = $1,000 in fees x 1,000 points = 1,000,000 points through fees per day
The above scenario would appear to present roughly equal importance and weightage between TVL and fees per day. Of course, the actual average 24H fee/TVL would likely be much higher in reality, especially as more LPs learn about and join Meteora. The points earned through fees are also on top of points earned through TVL.
Another points scoring consideration was whether stable pools should be awarded the same (or less) points as more volatile pools such as those with SOL pairs or Memecoin pairs, since the amount of risk exposed to LPs is very different.
The community consensus was that we should review the historical metrics on Meteora pools and discuss the points system again to determine a suitable multiple for points awarded through fees earned vs TVL.
Thanks to Durden, we started a poll going to get some rough community sentiment around how much more fees should be incentivized relative to TVL. Close fight between 1,000x and 10,000x! Please continue to vote!
When $MET?
Ultimately, the $MET token will only launch when we hit major TVL and volume milestones. As such, we should align all our growth incentives towards that massive liquidity event. This approach would lead to a huge win for LPs and MET holders, and pave the way for Meteora to be a top source of liquidity for the whole Solana ecosystem!
Fun fact: We noticed Meteora DLMM volumes and overall volume rankings rising fast after the community call! Was this the effect of simply announcing the scoring system!? 🤔
More integrations to make Meteora an excellent venue for fresh liquidity
Meteora plans to work with multiple crypto trading bot projects to enhance market making and price discovery for new projects bootstrapping liquidity on DLMM and other pools. This includes, but not limited to, some of the most popular bots out there like Bonkbot and Fluxbot.
Apart from Birdeye, Meteora volumes and liquidity stats will soon be captured by additional token listing and data tracking sites such as DexScreener, CoinGecko, Gecko Terminal, and Coinmarketcap.
To support community education, Meteora will create a token launch guide for projects keen on launching their tokens on our pools.
$JUP Launch on DLMM
We’re moving closer to the launch and targeting (not confirmed) the tail end of Jupruary!
All the necessary preparations are being made to ensure a successful launch. Internal testing has started with more audits and stress tests being lined up to make DLMM even more secure and prepared for the JUP launch. Small-scale public testing is expected soon. We’re also ensuring RPCs and backend servers can handle the huge influx of users expected during the launch.
Get ready for a host of exciting activities on Meteora:
- 5% of all JUP will be on DLMM for users to obtain during the launch
- Your claimed JUP airdrop can be sold on DLMM with ready liquidity for you
- As a JUP liquidity provider (LP), you can provide liquidity as an LP to earn trading fees
- Projects might be providing bonus incentives for JUP-paired pools
- Being a JUP LP can earn you points on Meteora
- With the upcoming Kamino Finance integration, Kamino vaults can earn you Kamino points ON TOP of Meteora points. Points stacking anyone?
Do you have more ideas around the LP Points System or have questions about the JUP launch on DLMM? Join the Meteora community on discord to participate in the discussions!
