LTV Protocol Points program

Overview

The LTV Protocol Points program is a loyalty and engagement system designed to reflect participation activity for users contributing liquidity to the protocol.
It reflects both commitment and duration of participation, aligning incentives between the protocol and its community.

Program objectives

The Points Program is built to:

  • Encourage long-term liquidity provision.
  • Recognize active community members who support early stages of the protocol.
  • Create a transparent metric for user contribution and engagement.

Points are a measure of contribution and loyalty — reflecting both how much and how long liquidity has been provided.

Earning Points

Base Points

Participants accumulate base points automatically through:

  • Liquidity Amount: The volume of assets deposited into LTV Protocol vaults.
  • Holding Duration: The length of time liquidity remains deposited without withdrawal.

Both metrics will be calculated continuously to ensure fair and transparent distribution.

Multipliers

Points can be boosted through specific multipliers that reflect early or extended participation.

Multiplier TypeDescriptionBoost
42 NFT Holder BonusExclusive multiplier for holders of 42 NFTs.+42%

Further multipliers and conditions will be announced closer to the public mainnet release.

Points calculation formula

Points accrue per block, proportional to the number of vault shares held. Holding a 42 NFT applies an additional +42% boost on top of the base rate. All coefficients are parameters, not hardcoded constants, and may change over time.

The total number of points earned by a participant is determined by the following formula:

\[ \text{userPoints} = \sum ( \text{userBalanceAtBlock} \cdot \text{basePointsRate} ) \] \[+ \sum ( \text{userBalanceAtBlock} \cdot \text{hasUserNftAtBlock} \cdot \text{nftBoostRate} \cdot \text{basePointsRate} ) \]

Definitions

  • userBalanceAtBlock

User balance measured in tokenized vault shares at a given block.

  • basePointsRate

Base points accrual rate.

basePointsRate = 1.5 / 1000
  • nftBoostRate

Additional boost applied for NFT holders.

nftBoostRate = 0.42
  • hasUserNftAtBlock

Binary indicator of NFT ownership at a given block:

1 — user holds a 42 NFT
0 — user does not hold a 42 NFT

What this means in practice

To make the scale intuitive:

  • Holding 1 vault share earns approximately ~10 points per day.
  • Holding 1 vault share + a 42 NFT earns approximately ~14 points per day (the NFT provides a +42% boost).

These values are approximations, meant to illustrate the order of magnitude rather than exact block-level accounting.

Points are recalculated and redistributed once per day, withing an hour after at 00:00 UTC.

After each recalculation:

  • vault share balances are reflected in the app
  • point balances update
  • leaderboard rankings refresh

All rates are configurable parameters and may evolve over time as the protocol scales.

Participation rules

  • Automatic enrollment: Any wallet interacting with LTV Protocol vaults after the program launch becomes eligible to participate
  • Transparency: User balances and total leaderboard rankings will be publicly viewable via the LTV Protocol interface after launch.
  • Non-transferable: Points are tied to wallet activity and cannot be sold, transferred, or delegated.

Relation to 42 NFT

The 42 NFT is directly integrated with the Points program.
Holders receive a +42% multiplier on all points earned.
It also grants early access to the closed beta phase, allowing holders to participate in the point phase earlier than the general public.

For detailed information, refer to the 42 NFT documentation.