Points Program Business Rules

Overview

The Points Program is designed to reward users for their participation in the Silo Finance protocol. Points are awarded for supplying assets and borrowing, with different multipliers applied based on various factors.

Core Point Calculation Rules

Base Points

• Supply Base Point: 1.0 point per USD
• Borrow Base Point: 0.5 points per USD

Multiplier System

Before February 21, 2025

• Fixed deposit multiplier: 1.0
• Fixed borrow multiplier: 0.5
• These multipliers apply to all pools and tokens uniformly

After February 21, 2025

• Dynamic multipliers based on pool configuration
• Separate multipliers for tokenA and tokenB in each pool
• Configurable deposit and borrow multipliers per token
• Default multiplier of 1.0 if no specific configuration exists

Points Calculation Components

Market has a token A and B

1. Supply Points

   • Awarded for supplied assets USD
   • Formula for Market with token A and B: Token A and B

      baseSupplyPoint * depositMultiplier * SuppliedAmountUSD

   • Zero points if supplied amount is zero or negative
   • Zero points if multiplier is explicitly set to zero
   • Calculated for both tokenA and tokenB

2. Non-borrowable Supply Points

   • Awarded only when both non-borrowable supply and borrowed amounts exist
   • Uses the same multiplier as regular supply points
   • Formula: Token A

      if bBorrowedAmountUSD > 0:
         baseSupplyPoint * depositMultiplierA * aSuppliedAmountUSD
      else:
         0
   //Users borrowing small amounts against non-borrowable deposits will have their points slashed. Please make sure you maintain a legitimate borrowing position.

   Token B

      if aBorrowedAmountUSD > 0:
         baseSupplyPoint * depositMultiplierB * bSuppliedAmountUSD
      else:
         0
    //Users borrowing small amounts against non-borrowable deposits will have their points slashed. Please make sure you maintain a legitimate borrowing position.

   • Zero points if either non-borrowable supply or borrowed amount is zero/negative
   • Zero points if multiplier is explicitly set to zero
   • Zero points if borrowed amount in the other Silo/Pool is 0
   • Calculated for both tokenA and tokenB

3. Borrow Points

   • Awarded for borrowed assets USD
   • Formula: Tokena A & B

   baseBorrowPoint * borrowMultiplier * borrowedAmountUSD

   • Zero points if borrowed amount is zero or negative
   • Zero points if multiplier is explicitly set to zero

Distribution Rules

1. Timing
   • Points are calculated and distributed daily
   • Processing occurs at 6:00 UTC
   • Points are calculated based on position snapshots
2. Eligibility
   • Points are only awarded for active positions (non-zero amounts)
   • Both supply and borrow activities are eligible for points
   • All addresses are eligible by default unless blacklisted
3. Blacklist System
   • Maintained in a JSON configuration file (res/blacklist.json)
   • Addresses in the blacklist are completely excluded from points distribution
   • Blacklist is loaded at service startup
   • Changes to blacklist require service restart to take effect
   • Blacklisted addresses receive zero points regardless of their activity
   • Historical points for blacklisted addresses remain unchanged

Pool and Token Configuration

1. Pool Structure
   • Each pool contains two tokens (tokenA and tokenB)
   • Each token can have different multipliers for deposits and borrows
   • Pool configurations can be updated to adjust multipliers
2. Multiplier Configuration
   • Multipliers can be set per token within each pool
   • Four multiplier types per pool:
     • Token A deposit multiplier
     • Token A borrow multiplier
     • Token B deposit multiplier
     • Token B borrow multiplier
   • Zero multiplier results in no points for that activity

Data Processing

1. Position Snapshots
   • Daily snapshots of user positions are taken
   • Includes supplied amounts, borrowed amounts, and non-borrowable supply amounts
   • All amounts are recorded in both raw token amounts and USD value
   • USD values are calculated using the token price at the time of snapshot
2. Updates and Modifications
   • Multiplier changes only affect future calculations
   • Historical points distributions are preserved

Technical Implementation

1. Data Sources
   • Position data retrieved from Sentio service
   • Multiplier configurations stored in RDS database
   • Blacklist maintained in JSON configuration file
2. Processing Pipeline
   • Data fetched in batches of 1000 positions
   • Each position processed individually with relevant multipliers
   • Results stored in database with distribution ID
3. Error Handling
   • Failed distributions are logged but don’t affect other users
   • System maintains audit trail of all calculations
   • Invalid or missing data defaults to zero points
4. Configuration Management
   • Multipliers managed through admin interface
   • Blacklist updates require system restart
   • Pool configurations can be updated without downtime