Dual-Point Economic System

Incentive Alignment Engine

1. Behavior Points: Activity-Based Rewards

Point Generation Mechanism

Funder Point Formula: Points_f = (Average Daily Balance × 0.5) + (Capital Utilization % × Vault Factor) Vault Factor: 1.2 for Investment Vault, 0.8 for Fund Vault

Trader Point Formula: Points_t = log10(Trade Volume) × 100 + (Borrowed Amount × 0.3)

Distribution Schedule

Activity	Point Rate	Cap	Frequency
Funds Deposited	5 pts/$1000/day	None	Daily
Capital Utilization	1 pt/% point >80% utilization	20 pts/day	Hourly
Trade Volume	50 pts/$1M volume	500 pts/trade	Per Trade
Referral Activity	10% of referee points	None	Real-time

2. HYPE Staking Points: Ecosystem Alignment

Value Flow Architecture

Staking Point Calculation: Points_s = (Staked HYPE × Days Staked) ÷ 100

3. Point Redemption Ecosystem

Behavior Point Utilities

Tier	Points Required	Benefits
Bronze (1,000)	1,000	5% Fee Discount, Basic Analytics
Silver (10,000)	10,000	10% Fee Discount, +5% Leverage Cap, Advanced Tools
Gold (50,000)	50,000	15% Fee Discount, VIP Support, Governance Voting
Platinum (200,000)	200,000	20% Fee Discount, Private Market Data, Protocol Share

HYPE Staking Rewards

Staked HYPE	Daily Points	Equivalent Value
1,000	10	$0.10 fee credit
5,000	50	$0.50 fee credit
25,000	250	$2.50 fee credit + NFT Airdrop
100,000	1,000	$10 fee credit + VIP Access

4. Combined Economic Effects

Point Acceleration Flywheel

graph LR
    A[Increased Trading] --> B[More Fee Revenue]
    B --> C[Greater HYPE Buybacks]
    C --> D[Higher Staking Rewards]
    D --> E[Reduced Trading Costs]
    E --> A
    
    F[Active Funders] --> G[Higher Capital Utilization]
    G --> H[More Trader Leverage]
    H --> I[Increased Trading Volume]
    I --> F

Mathematical Representation

Protocol Growth Rate = k × (Behavior Points^0.7) × (Staked HYPE^0.5) Where k = 0.15 protocol constant

5. Real-World Impact Metrics

Parameter	Pre-Launch	90-Day Post Launch	Improvement
Daily Active Traders	120	2,500	20.8x
Funder TVL	$1.2M	$45M	37.5x
HYPE Staked	-	8.2M ($12.3M)	New baseline
Avg. Fee Discount	0%	14.2%	Cost reduction
Volume/Point Ratio	-	$38,500/pt	Capital efficiency

6. Special Programs

Governance Integration

• Voting Weight: 1 Platinum Point = 1 governance vote

• Proposal Rights: 50,000+ points unlock submission privileges

• Parameter Adjustment: Point holders vote on:

  • Fee structures

  • Vault allocations

  • New asset listings

7. Security & Transparency

Auditable Point System

• All point calculations on-chain via HyperEVM

• Real-time balance checks through dedicated precompile

• Immutable history of point accrual and redemption

• Quarterly Merkle proof distribution for airdrops

Anti-Manipulation Safeguards

1. Activity Verification:

   • Trading volume cross-verified with HyperLiquid data

   • Funding balances require on-chain proof

2. Sybil Attack Prevention:

   • Minimum $100 equivalent per account

   • Behavior anomaly detection

3. Point Expiry:

   • 10% annual decay on inactive accounts

   • Full reset after 24 months dormancy

This dual-point economy creates a self-reinforcing ecosystem: active participants earn valuable rewards that reduce their costs and increase their capabilities, while protocol growth drives HYPE token value appreciation. The system aligns trader, funder, and protocol incentives into a cohesive growth engine that becomes stronger with increased participation.