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  3. /Points System
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defi

Points System

A mechanism where protocols award non-transferable points to users for specific actions like providing liquidity, trading, or bridging.

Definition

A mechanism where protocols award non-transferable points to users for specific actions like providing liquidity, trading, or bridging. Points typically convert to tokens in a future airdrop. The points meta exploded in 2024 as protocols used it to bootstrap activity before launching their token.

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Related Terms

Points Meta

A trend where protocols reward users with points instead of tokens, with the implied promise that points will convert to tokens in a future airdrop.

Airdrop

A marketing strategy where crypto projects distribute free tokens to wallet addresses.

Airdrop Farming

Strategically using protocols before they launch a token to qualify for free airdrops.

1inch

A DEX aggregator that splits trades across multiple decentralized exchanges to find the best overall price.

Aave

One of the biggest lending and borrowing protocols in DeFi.

Across Protocol

A cross-chain bridge that uses an optimistic verification system and a network of relayers to move tokens between chains quickly.

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