Points Programs Guide

What are Points Programs?

Points programs are loyalty systems where protocols reward users with points for:

• Trading volume
• Liquidity provision
• Referrals
• Social engagement
• Daily check-ins

These points often convert to token airdrops at TGE (Token Generation Event).

Why Points Matter

Historical Success Stories

• Blur: Points → $BLUR airdrop (~$1,000-$50,000 per user)
• Friend.tech: Points system before token launch
• Blast: Points for deposits (controversial but profitable)
• EigenLayer: Points for staking

Current Value

Points are speculative but can:

• Signal future airdrop eligibility
• Determine allocation size
• Create early user incentive
• Build community before token

Finding Points Programs

1. SourceChain Events

Monitor our Points Program category for:

• New program launches
• Point multiplier events
• Conversion announcements

2. On-Chain Indicators

Look for protocols with:

• ✅ VC funding but no token
• ✅ Active development
• ✅ Growing TVL
• ✅ Beta/testnet phase
• ✅ Similar to projects that airdropped

3. Social Signals

• Twitter announcements
• Discord/Telegram campaigns
• Partnership with known projects
• Influencer participation

Types of Points Programs

Trading Points

Earn by: Making swaps, trades, or transactions

Examples:

• DEX trading volume
• Perpetual trading
• Lending/borrowing

Strategy:

• Consistent activity > one large trade
• Unique days active often matter
• Gas fees vs potential reward

Liquidity Points

Earn by: Providing liquidity to pools

Examples:

• LP positions
• Lending protocols
• Staking derivatives

Strategy:

• Consider impermanent loss
• Lock periods vs point multipliers
• APY + points = total yield

Referral Points

Earn by: Inviting others

Examples:

• Referral codes
• Social sharing
• Community building

Strategy:

• Quality > quantity
• Share with real users
• Build genuine network

Social Points

Earn by: Engaging on social media

Examples:

• Twitter follows/retweets
• Discord activity
• Content creation

Strategy:

• Genuine engagement
• Don't spam
• Provide value

Strategies for Maximizing Points

1. Early Participation

• Day 1 bonus: Many programs have early adopter multipliers
• First week matters: Build streak early
• Compound effect: Early points often earn more over time

2. Consistency Over Volume

❌ One-time: Deposit $10,000 for 1 day = 100 points
✅ Consistent: Deposit $1,000 for 100 days = 1,000+ points

Many programs reward:

• Unique days active
• Consecutive days
• Long-term participation

3. Multi-Protocol Strategy

Don't put all eggs in one basket:

• Participate in 5-10 programs
• Diversify time and capital
• Track all programs in spreadsheet
• Set reminders for dailies

4. Gas Optimization

For Ethereum mainnet:

• Batch transactions when possible
• Use L2s if program supports
• Time transactions during low gas
• Calculate ROI: Don't spend $50 gas for 100 points

5. Point Multipliers

Look for:

• Time multipliers (longer locks)
• Volume multipliers (trading contests)
• Referral multipliers (team bonuses)
• NFT/token holder multipliers

Risk Management

Capital at Risk

Points programs often require:

• Locking capital
• Smart contract risk
• Market volatility exposure

Mitigation:

• Only use funds you can afford to lock
• Diversify across programs
• Check contract audits
• Start small, scale up

Time Investment

• Daily check-ins = time commitment
• Track too many programs = burnout
• Automate where possible

Scam Programs

🚩 Red flags:

• Anonymous team
• No product, only points
• Requires upfront payment
• Promises guaranteed returns
• Ponzi-like referral structure

Tracking Your Points

Spreadsheet Template

| Program | Start Date | Points Balance | Capital | Est. Value | Status | |---------|------------|----------------|---------|------------|--------| | Protocol A | 2025-01-01 | 10,000 | $1,000 | TBD | Active | | Protocol B | 2025-01-10 | 5,000 | $500 | TBD | Active |

Important Metrics

• Total points earned
• Points per dollar invested
• Points per day active
• Snapshot expectations

When Points Convert

TGE (Token Generation Event)

Typical timeline:

1. Program announcement: Month 1
2. Active farming: Months 2-6
3. Program ends: Snapshot announced
4. Conversion ratio revealed: Often surprise
5. TGE & claim: Tokens distributed

Conversion Ratios

Warning: Points ≠ guaranteed value

• 1,000 points might = 100 tokens
• Token launch price unknown
• Allocation can change
• Sybil farmers may be excluded

Tax Implications

When taxable:

• ✅ Token claim (income at FMV)
• ✅ Token sale (capital gains)
• ❌ Point accumulation (likely not taxable until converted)

Keep records of:

• Program participation dates
• Capital deployed
• Conversion events
• Sale prices

Current Top Programs (2025)

Check SourceChain for updates, but watch for:

1. L2 scaling solutions without tokens
2. DeFi protocols with VC backing
3. Cross-chain bridges and infra
4. Account abstraction wallets
5. Perpetual DEXs
6. Lending/CDP platforms

Points Farming Checklist

• [ ] Research protocol team & backers
• [ ] Check for audit reports
• [ ] Understand point mechanics
• [ ] Calculate break-even scenarios
• [ ] Set up tracking system
• [ ] Enable notifications
• [ ] Join official community
• [ ] Plan exit strategy

Advanced Strategies

1. Whale Watching

• Monitor large depositors
• Track smart money wallets
• Follow VC-backed wallets

2. Meta-Gaming

• Multiple wallets (if allowed)
• Arbitrage between programs
• Optimize for multiple programs simultaneously

3. Community Intel

• Discord alpha channels
• Twitter spaces
• Private research groups
• Paid newsletters

Conclusion

Points programs can be highly lucrative but require:

• Due diligence on projects
• Capital efficiency
• Time management
• Risk awareness

The best approach: Participate genuinely in protocols you'd use anyway, with points as a bonus.

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Related Guides:

• Airdrop Guide
• DeFi Interaction Guide
• Wallet Setup Guide