Euler is officially back. We couldn’t be more excited for this new chapter and can’t wait for everyone to experience the much improved Euler v2. More importantly, we also want to acknowledge users of the protocol more effectively and further build the Euler ecosystem.
Following discussions, the Euler Experience Points Initiative is officially live on the Dapp, with users earning points retroactively from day one of the announced launch. In total, there will be three seasons, each lasting four months.
The XP system has been displayed on the main Euler interface, where users can track their XP in real-time.
Season 1 will focus on two key user classes:
- Liquidity providers are awarded 1 lpXP for each $1 of liquidity utilised per day when supplying ETH or USDC into Euler’s governed or ungoverned vaults. In this context, 'utilised' refers to the portion of the deposited funds that are actively borrowed by other users.
- Vault creators are awarded 1 vcXP per $1 of value generated from vault fees for Euler DAO. Recall that vault fees are auctioned periodically through Euler Fee Flow. The value generated will be measured at the market price at the time of fee conversion and transfer to the Fee Flow contract. This system ensures that vault creators only receive vcXP if they generate real value for the DAO, making it difficult to game. A vault that creates value for the DAO, regardless of what asset it holds, will get points.
Season 2 point system will be determined based on the review and feedback of Season 1. The Euler DAO may also decide to introduce new user classes, such as borrowers or traders, with new rules to be finalised at least 4 weeks before the season begins.
Season 3 will be designed based on the outcomes of previous seasons. The rules for each subsequent season will be finalised 4 weeks before their start.
As we move forward, the Euler DAO will review and potentially expand the XP system to future seasons, continually refining and adapting the initiative to ensure it supports and acknowledges key community members.
Disclaimers
The XP itself has no inherent value and confers no rights to those addresses to which they accrue. In the event the DAO does opt to reward XP holders in the future, those rewards might not be made eligible to users from the US and/or any other type of user that does not adhere to the Terms of Use listed on euler.finance. Acceptance of and adherence to the Terms of Use and other policies is a prerequisite to participate in the XP programme.
It is also important to note that under this initiative vcXP and lpXP are not equal and cannot be exchanged 1 for 1. Experience points for different classes of users should always be measured in different units and tracked separately from one another.
Finally, any liquidity provider or vault creator using or creating custom-vaults, which are designed simply to game the XP system, should be excluded from the programme. Exclusions should be obvious, but could be voted on by the DAO if contentious.
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