DEX platform Vega launches EigenLayer derivatives market: to list more token trading products

As loyalty point systems continue to expand into Web3 applications, the derivatives platform Vega has launched a loyalty point derivatives trading market, with EigenLayer points being the first asset listed, allowing users to hedge the value of their loyalty points. Previously, protocols such as Whales Market, Pendle, and Kelp DAO have also been at the forefront of releasing loyalty point trading and leverage products.

Kelp DAO introduces KEP token, unlocking liquidity for EigenLayer loyalty points at a 1:1 ratio

Vega Launches Points Derivatives Trading Market

According to the official blog post by Vega, the platform has launched its first points derivatives market and has listed the EigenLayer points project for staking:

The Vega community has proposed and launched the first derivatives market based on EigenLayer points and is rapidly evaluating other points to add their markets to the platform.

As a highly decentralized DEX platform, Vega allows users to propose the creation of any trading market, including but not limited to points projects.

The service aims to allow EigenLayer users to hedge the value of their points on one hand, and to enable the broader crypto community to speculate on the future value of various ecosystems and token airdrop prices on the other.

Vega also mentions that while points can indeed estimate potential token airdrops, building a system that trades based on such "potential outcomes" is not easy.

Therefore, Vega uses cash-settled derivatives markets to address the uncertainty of points trading and provides options for fixed and dynamic settlement dates:

Users can choose the expiration date of the contract according to their needs, allowing for more flexibility in dealing with potential token airdrops.

Market data from Vega shows that the current quote for EigenLayer points is approximately 0.12967.

Rising Use Cases of Points Systems

Similar to Web2 points or reward mechanisms, points systems have advantages such as information disclosure, application flexibility, resistance to Sybil attacks, etc. The use of points systems by various projects to evaluate user airdrops and reward distributions is gradually increasing.

Compared to token rewards, on-chain points provide teams with more flexibility and room for adjustments.

With the emergence of market demand, projects are designing trading services and leverage products for points that originally had no liquidity to enhance points liquidity and capital utilization, and hedge potential airdrops.

Whales Market's Pre-Market Trading Service

Previously reported, the Pre-Market protocol Whales Market provides users with a variety of project points choices with potential airdrop opportunities, including Magic Eden and Friend.Tech, which can be traded in the market.

Monetizing Airdrop Points! Whales Market allows immediate trading of airdrop points

Currently, the quote for EigenLayer points is around 0.1991, still different from Vega's.

Pendle's Points Leveraged Trading

In addition, Pendle, dedicated to LSDFi, has also joined the trend by launching the Pendle Points Party to provide leveraged trading services for points trading.

Its operation model is similar to its asset tranche model, maximizing profits through users buying and selling PT and YT at the right time.

However, although many teams have begun to explore points trading systems born out of market demand, some projects, including revenue-generating L2 network Blast, may not fully agree with this mechanism:

Users who obtain additional points through trading, etc., will lose their airdrop allocations.