Loyalty League - Points and Stake Boost

BOOST YOUR STAKING APY

Through Loyalty League v1 we've airdropped 1400+ SOL between Q1 and Q3 of 2024 to stakers and DeFi partners on top of their yield, achieving one of the highest yields across all LSTs. It's time to take it to the next level.

Seasons

We've designed a seasonal approach instead of previous weekly airdrops to encourage loyal stakers, new participants, and DeFi partners. Each season will last for 3 months and at the end of each, the Rewards Pool (SOL + partner incentives) will be airdropped to all program participants proportional to their points, similar to Jupiter ASR.

Points System

Loyalty League v2 is driven by a robust and dynamic points system capable of awarding points at a highly detailed level based on protocol usage. This system enables varied point rates and boosts for:

  • Native staked SOL

  • hubSOL and other LSTs

  • DAO tokens

  • Partner incentives

Our points are denominated in USD with the base being SOL. This means you get 1 point for 1$ worth of SOL. If SOL is 150$ you get 150 points per day.

Supported LSTs, DAO tokens and partner incentives are calculated the same way. Points increase every day until the end of the season.

DeFi protocol rewards

A protocol can collaborate with Solanahub by allocating grants for hubSOL users. These grants will be sent to the Rewards Pool and will be airdropped to all program participants at the end of each season.

If you're a protocol and want to contribute to the rewards pool, please contact Amir or Beni.

Tier System

The tier systems serves as a time based reward for everyone. The longer you stake the higher tier you unlock and the more points you get.

There is no minimal stake amount to participate, only consistency matters. Each tier will be unlocked ~2 weeks after the previous one (if you were staking the whole time).

The reward treasury is funded by two sources:

  1. Validator rev-share also referred to as SolanaHub validator personal staking rewards.

  2. Contributions from third parties who offer rewards to SolanaHub based on its validator activity and other engagements.

Reward allocation:

  • A fixed portion of the SolanaHub validator rewards is allocated, meaning participants with greater stakes will receive a larger share of the rewards.

  • Rewards are not evenly distributed and take into account your total points, which may fluctuate depending on the current above factors.

The loyalty program is fully autonomic, from score capturing and airdrop information to reward distribution.

Direct Staking Boost

Many stake pools exist on Solana where staked SOL is "pooled" and then delegated to a set of validators. With direct staking you can choose the validator your SOL will be delegated to. This not only supports the validator itself but gets you additional rewards on top of the staking APY in the case of Solanahub. Full guide:

DAO Votes Boost

On-chain DAO governance involves decentralized decision-making processes where community members vote on proposals. In the case of Solblaze and Marinade, these DAOs allow stakeholders to directly influence project decisions by voting with their tokens, making the process transparent and tamper-proof.

Solanahub rewards everyone who uses their BLZE in Solanahub Gauges. Guides here:

HUB Domain Boost

All Domains is a web3 identity asset layer to create and trade web3 domains. Amplifying our message of being a central hub for everything Solana, we want to support this vision by rewarding .hub domain holders in our Loyalty League.

Guide on how to get a .hub domain and unlock the 5% boost:

Example

Let's consider the following variables:

  • P: Prize pool = 10 hubSOL

  • L: Liquid Direct Stake Ratio = 2

Alice has staked 100 SOL natively with SolanaHub for 10 epochs, while Joe has also staked the same 100 SOL, but as a liquid staking asset. When the prize pool is distributed, their share in the pool will be calculated as follows:

  • For Alice, her score will be calculated as 100 * (account age(10) * 0.01 + 1) = 110 points.

  • For Joe, his score will be calculated as 100 * L = 200 points.

To determine their respective shares in the pool:

  • Alice's share in the pool will be 110 points / Total Score (310) = 35.5%.

  • Joe's share in the pool will be 200 points / Total Score (310) = 64.5%.

To realize their profits:

  • Alice's profit will be P * Alice's Share = 3.55 hubSOL.

  • Joe's profit will be P * Joe's Share = 6.45 hubSOL.

The Loyalty League prize pool is composed of multiple assets with varying volatility ranges, which can impact the prize pool, both positively and negatively.

FAQ

Q: Is there a minimum stake to participate in the program? A: No minimum stake requirement

Q: How frequently are points calculated? A: Loyalty Point snapshots are taken daily. In some cases, your points may not update due to delays in third-party snapshots (such as from Marinade/Solblaze).

Q: The prize pool appears to grow or decrease rapidly. Why is that? A: The prize pool allocation is constructed from various assets, some of which are highly volatile and can impact the total prize pool. Therefore, the airdrop reward can be dynamic until the airdrop day.

Q: What's the Minimum Reward I Can Receive? A: No minimum

Q: What Else Should You Be Aware Of? A: Keep in mind that this is an experimental program, and changes may occur based on its success. We're committed to optimizing and enhancing the program to ensure the best experience for our members.

Terms and Conditions:

  1. stake pools are excluded

  2. subject may change at any time

Last updated