The Contango points system
Contango is launching a simple yet engaging points system to incentivize adoption and boost community engagement.
As part of this points system, avariable amount will be distributed weekly to users for 2 months, starting today, 24th of January, until 27th of March.
This points system is the first step towards a Contango token launch, planned for 2024.
21,319,064 points have already been allocated retroactively according to several parameters (see below). Congrats to all those users who were early! 😉
How to earn points
We love simple designs.
And we love rewarding any type of contribution, not just product usage, to level the entry field for anyone.
There are 3 (+1) ways to earn points :
1. Trade 📈
You can earn points by trading on app.contango.xyz on any market and chain. Please remember:
- Both volume and open interest will be taken into consideration when allocating points, therefore opening and holding open positions for longer is incentivized, while wash trading is disincentivized. While both volume and open interest are required in a given week to earn points, volume has a higher weight than open interest. More specifically, to compute a trader’s points, volume and open interest are multiplied, and each one has an exponential weight.
- Opening, closing and modifying size all contribute to volume changes, so these actions accrue points. On the other hand, increasing leverage is equal to crystalizing some PnL so, as long as you don’t modify size in the same transaction, then it won’t count towards points allocation.
- Volume on non-correlated assets, such as ETH/USDC, would entitle traders to get 5 times more rewards than correlated assets, such as wstETH/ETH or USDC/DAI. From a trader’s perspective, opening positions on a trading pair with correlated assets, does not involve the same level of risk as opening a position on a trading pair with non correlated assets.
- Traders are encouraged to trade from one account. Splitting trades into multiple accounts in a given week results in fewer rewards.
2. Talk about Contango 📣
You can earn points by carrying out social activities, such as, but not limited to: writing a tweet, a thread, an article, a blog post, or even making a video about Contango.
The idea is to help spread awareness on Contango as not just another perp platform, but as a hybrid product that allows for sophisticated trading strategies. Understanding how it works and showcasing product usage is key for the protocol’s success and will be highly valued when evaluating the submissions we receive.
Content submissions are accepted on a rolling basis via this googleform.
Points are distributed on a weekly basis, at the discretion of Contango. Weekly allocations can vary depending on the overall quality and number of submissions, but they’re capped to a maximum. Contango reserves the right to allocate points depending on the overall quality and number of contents submitted. Generic content that shows no clear understanding of the product and/or looks ChatGPT-ish will likely de discarded for points allocation.
Only content produced after 24th January will be considered.
Content produced as part of ongoing paid sponsorships is not eligible.
3. Help with the product 🤝
Every week, some points will be allocated at Contango’s discretion to users who will report relevant bugs and give relevant product feedback. You can do so on our Discord, on the #feedback channel.
Weekly allocations can vary depending on the overall quality and number of submissions, but they’re capped to a maximum.
Retroactive early bonus
Contango has been live since April 2022 with its v1 on expirable futures, and launched its v2 with cPerps in October 2023. Since the start we’ve been helped substantially by early users who tested the app and provided product feedback.
Both Contango’s v1 and v2 have been taken into account to award initial early bonus points to these users.
For v1, you’ll have some initial points if:
- you have traded on v1.
- you have completed the “Early trader” Galxe campaign and at least another one involving v1.
For v2, you’ll have some initial points if:
- you have traded on v2 before 24th January 2024.
- you helped the team flagging relevant bugs and provided relevant feedback (these points have been allocated at the discretion of Contango).
In total, 21,329,415 points have already been allocated for the above activities.
Distribution
Distribution of points for each of the 3 categories mentioned above happens every week, on Wednesday.
By clicking on the points button, you’ll be able to see all the points earned either via trading, via social activities, product-related activities, and (maybe!) the early bonus.
We’ll ship a more detailed dashboard with a leaderboard soon.
Contango reserves the right to modify this point distributions under its sole discretion.
Go check if you already have points on Contango now!
FAQs:
Does holding a position accrue points?
The formula used to compute points for each week multiplies volume (V) and open interest (OI) and weights each component with an exponential. So, holding open positions for longer is incentivized, while wash trading is disincentivized. While both V and OI are required in a given week to earn points, V has a higher weight than OI. To accrue points you basically want V and OI to be > 0 in a given week.
The longer you keep a position in e.g. week 1, the more points you get in week 1. However, if this position remains open in week 2, and you don’t trade, you will accrue no points for week 2. If your trade in week 2 on the same position, the OI you kept from epoch 1 will magnify the points collected in week 2.
What actions accrue points while trading?
Opening, closing and modifying size all contribute to volume changes, so these actions accrue points. Increasing leverage is equal to crystalizing some PnL so, as long as you don’t modify size, then it won’t count towards points allocation.
E.g. if you open a position in week 1 (e.g. + 10 ETH), then you have some volume in week 1, and if you reduce its size (e.g. -2 ETH) in week 2 you have some volume , so you’ll earn points on both weeks.
Is the total supply of points fixed or variable?
The amount of points distributed for trading depends on the total volume traded each week. More volume = more points allocated.
How are weeks calculated?
Weeks for points allocation start every Wednesday at 00:00 UTC and end every Tuesday at 23:59 UTC.
Where can I check stats on the current volumes and open interest?
About Contango
Contango lets you loop anything on-chain. You can create leverage (re)staking positions, arb rates differentials, farm points, or simply go long or short like a perp at low funding. Ape in like a degen with 1-click Strategies, or trade like a pro on the sleek Trade interface.
