What are “Points” on Dyson Finance?
Dyson Finance operates as a Decentralized Exchange (DEX), with a core focus on Dual Investment for Liquidity Provision (LP).
Within Dyson Finance’s intricate ecosystem lie various tokens, each playing a distinct role, like $DYSN, or sDYSN. This article aims to focus on the functionalities of a distinct type of token: “Points”.
Points can only be generated and claimed by users part of the Dyson Finance invite-only membership program.
So, why a “Point” system?
Reason #1: Points Are A Measure Unit For User Engagement
Points form the foundation of the protocol’s approach to measuring member participation in the Dual Investment mechanism, adding a layer of transparency and sophistication to our ecosystem.
In other words: the more meaningfully you participate in the Dyson Finance protocol (as a member investing or referring), the more Points you get.
And the more Points you get, the more $DYSN you get.
Points serve as a dynamic indicator, reflecting the relative depth and scale of involvement within the Dyson Finance ecosystem.
Reason #2: Points Are An Additional Incentive For Liquidity Providers
In a manner analogous to conventional DEXs rewarding LPs with mining incentives, Dyson Finance offers Points as an extra reward to Members providing liquidity via Dual Investment.
Dyson Finance’s Dual Investment mechanism, although sharing conceptual similarities with LP tokens on other DEXs, diverges significantly from the latter. Unlike “permanent” LP tokens staked for mining in conventional DEXs, Dual Investment positions are not permanent and have a set lifetime period (1, 3, 7 or 30 days).
To ensure a controlled and predictable supply of $DYSN within a specific timeframe, Dyson Finance has introduced the Point system.
In that regard, Points serve as an intermediary unit, quantifying the level of engagement in the protocol and Dual Investment, rewarding users accordingly and giving them an extra incentive to invest more, for longer time periods.
The 2 Ways To Earn Points:
Obtaining Points on Dyson Finance is possible in two ways, both of which are accessible only for members:
- Instant Rewards Through Investment: Unlike non-member users who would receive their token rewards only at maturity, members receive Points right away upon investing in the Dual Investment program. As assets are injected into the Dual Investment pool, a corresponding amount of Points is allocated to the investor.
- Referral Rewards: Dyson members who introduce new participants to the ecosystem become eligible for referral rewards. When a referred member utilizes their acquired Points to exchange for $DYSN (after an investment), the referrer receives an additional 1/3 of the Points that was swapped. This referral cascade generates a chain of rewards, creating a network effect that benefits both referring members and their recruits.
Navigating the Point Exchange Process:
Points are not static; they represent a dynamic asset that can be exchanged for $DYSN, Dyson Finance’s governance and boosting token.
Additionally, there is a cooldown period following each swap, preventing frequent and rapid exchanges that could disrupt the system’s stability. This cooldown period is shorter for members with a Tier closer to 1, allowing them to farm $DYSN faster, more frequently.
On the other hand, the exchange rate between Point and $DYSN is influenced by market dynamics, with high demand for Points resulting in a lower yield of $DYSN tokens per unit of swapped Points. In other words, if a large number of users simultaneously intends to swap Points for $DYSN, the conversion rate will be less favorable than claiming $DYSN alone.
Point-to-$DYSN Exchange
Points accumulated by participants can be exchanged for $DYSN tokens. The transition from Points to $DYSN follows a formulaic approach, where parameters such as the maximum exchangeable amount of $DYSN, the rate of $DYSN generation, the time since the last exchange, the remaining amount, and the desired quantity of $DYSN play pivotal roles.
In short, Point serves as a dynamic force that enhances fairness, encourages engagement, and provides participants with a direct link between their involvement and tangible rewards.
This reward system is exclusive to users part of the Dyson Finance’s invite-only Membership Program, allowing them to earn more, and faster from their dual investment deposits.
About Dyson Finance
Dyson Finance aims to redefine the DeFi landscape by offering a more inclusive, profitable experience for retail investors. By combining the strengths of dynamic AMM, dual investment, and an exclusive Membership Program, Dyson Finance is well-positioned to onboard more users as liquidity providers and advance the DeFi ecosystem.
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