Point Methodologies

The OpenBlock Labs (OBL) point system is designed with the following key principles:

TVL-Time Integration

The OBL point system heavily incorporates Total Value Locked (TVL) over time as a measure of useful liquidity. By combining the amount of liquidity provided with the duration it remains within the ecosystem, the system rewards sustained contributions. Liquidity is denominated in USD to provide incentives commensurate to the market value of assets deployed.

Incentivizing Useful Liquidity

Not all liquidity is equal. The OBL point system emphasizes the importance of "useful liquidity," which refers to assets and liquidity positions that have a high impact on the ecosystem’s usability and growth. An objective function is used for each participating protocol to measure the useful liquidity supplied there.

Manipulation Resistance

OBL employs multiple measures to prevent the gamification of its incentive programs. Points are economically bonded to the quality of liquidity held, discouraging short-term or superficial contributions. Protocol-specific methodologies are in place to mitigate risks such as recursive borrowing and out-of-range liquidity provision, ensuring that only genuinely beneficial activities are rewarded

Multiplier Mechanisms

To ensure that the system remains adaptive and aligned with the ecosystem's goals, multipliers are applied to point calculations. These multipliers can emphasize or de-emphasize certain dimensions, such as the type of asset, protocol, or duration of liquidity provision. This allows the system to remain dynamic and responsive to the ecosystem's needs.