> For the complete documentation index, see [llms.txt](https://docs.vaultedge.fi/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.vaultedge.fi/the-protocol/pareto-points-and-referral-campaign.md). # Pareto Points & Referral Campaign ## Pareto Points & Referral Program Pareto Points (PP) reward users who contribute capital, take on debt, and actively deploy USDVE within the ecosystem. The system prioritizes debt creation and active USDVE deployment over passive holding. {% hint style="info" %} Pareto points are updated once per day {% endhint %} *** ### Getting Access Connect your wallet and complete your first onchain interaction to become an **active user**. This unlocks point earning and your referral link. **Qualifying first interactions:** * Depositing collateral and minting USDVE * Depositing into the Stability Pool *** ### Staying Active Active status requires at least one contract interaction per month. Going a full calendar month without interacting removes your active status until you interact again. Inactive users are excluded from the median calculation and lose airdrop eligibility. **Interactions that count toward staying active:** * Depositing or withdrawing collateral * Borrowing or repaying USDVE * Adding or removing LP * Staking or unstaking in the Stability Pool *** ### Airdrop Eligibility: The Median Threshold To qualify for the airdrop, your PP total must be **above the median** of all active users at the time of the final snapshot. Below the median means zero airdrop. **How the median is calculated:** All active users are ranked by total PP. The median is the PP value of the user at the 50th percentile. For example, with 1,000 active users, the median equals the PP of user #500 when sorted by points. The median updates daily so you can track your standing in real time, but the final snapshot at the end of the campaign is what determines actual eligibility. The median is a moving target. As others earn more, you need to keep pace. Early users have an advantage, but cannot coast. **What you'll see in the app:** * Your current PP total * If you are above or below the median * Your rank among active users *** ### Earning Points #### Core Actions | Action | Points | Type | Notes | | -------------------------------- | --------------------------- | ---------- | ---------------------------------------- | | Hold sUSDVE | 6 PP per $1 per day | Time-based | New. Highest rate in the program | | Deposit collateral | 0.25 PP per $1 per day | Time-based | While collateral remains | | Borrow USDVE | 2 PP per $1 of debt per day | Time-based | Rewards maintaining debt, not opening it | | Provide USDVE liquidity (Hydrex) | 0.75 PP per $1 per day | Time-based | USDVE/USDC pool | Stability Pool staking is being retired in favor of sUSDVE. Existing staker have a migration window to move their position. #### Collateral Multipliers Different collateral types earn bonus PP on deposits. | Collateral | Multiplier | | ----------------- | ---------- | | cbBTC | TBD | | wstETH | TBD | | weETH | TBD | | Morpho wETH | TBD | | Morpho USDC Prime | TBD | #### Debt Multipliers (Borrowing Points Only) | Condition | Multiplier | | ---------------------- | ---------- | | Borrow from 1 market | 1.0x | | Borrow from 2 markets | 1.5x | | Borrow from 3+ markets | 2.0x | #### Social Actions | Action | Points | Type | | ------------- | ------ | -------- | | Join Discord | 5 PP | One-time | | Join Telegram | 5 PP | One-time | *** ### Referral System Once active, you have a **permanent referral link** with unlimited uses. Find it under the **Referrals** tab in the app. A referral is credited once the person you referred starts earning points, meaning they deposit, borrow, or provide liquidity. Connecting a wallet alone doesn't trigger it. **Referral rewards:** You earn **20% of all PP** your referrals earn, forever. Referrals keep 100% of their own points, your bonus is additive, not taken from them. Your referral earnings are capped at your own activity level, so keep a position open to earn the full amount. *** ### Protocol Milestones When the protocol hits collective goals, one-time shared rewards unlock for all active users. You must be active at the time a milestone is reached to qualify. | Milestone | Reward | | ------------------ | --------------------------------------------- | | $5M TVL | All active users: +1,000 PP | | $15M TVL | All active users: +5% multiplier for 14 days | | $30M TVL | All active users: +5,000 PP + exclusive badge | | 10M USDVE minted | All borrowers: +5% multiplier for 14 days | | 1,000 active users | Everyone: +2,500 PP | *** ### Tier System Tiers unlock badge categories and provide visual progression, displayed next to your PP balance. | Tier | PP Threshold | Badge Access | Visual | | ------ | ------------ | ---------------------- | ------------------------------ | | Green | 0 | Onboarding only | Circle, flat finish | | Bronze | 100,000 | + Base Ecosystem | Hexagon, matte finish | | Silver | 1,000,000 | + Pareto Zone & Health | Octagon, polished, subtle glow | | Gold | 5,000,000 | All badges | Dodecagon, radiant, animated | *** ### Badge Multiplier System Badges provide additive bonuses to your base PP earning rate. Multipliers stack, with a maximum combined bonus of **+75%**. Multipliers are additive, not multiplicative. If you hold Pareto Master (+15%) and Influence Circle (+10%), your total bonus is +25%, turning a base daily rate of 100,000 PP into 125,000 PP. Each multiplier has a duration and requires you to maintain criteria. Falling below the criteria pauses the multiplier until you qualify again. #### 1. Onboarding Badges (All Tiers) | Badge | Criteria | Hold Period | Reward | | --------------- | ------------------- | ----------- | --------- | | Funded & Ready | Deposit $220+ | 3 days | +500 PP | | First Mover | Borrow 1,000+ USDVE | 7 days | +2,500 PP | | Committed Edger | Borrow 5,000+ USDVE | 7 days | +5,000 PP | | Whale Watcher | Deposit $30,000+ | 14 days | +7,500 PP | #### 2. Debt Growth Badges (All Tiers) | Badge | Criteria | Hold Period | Reward | | ------------- | -------------------------------------- | ----------- | ------------------------- | | Debt Builder | Maintain 5,000+ USDVE debt | 14 days | +10,000 PP | | Leverage Lord | Maintain 25,000+ USDVE debt | 30 days | +30,000 PP | | Credit King | Maintain 50,000+ USDVE debt | 30 days | +75,000 PP | | Debt Maxi | Increase debt by 25%+ month-over-month | 30 days | +15% multiplier (60 days) | #### 3. Full Loop Badges (All Tiers) Rewards users who complete the optimal protocol loop: Deposit → Borrow → Deploy USDVE. | Badge | Criteria | Hold Period | Reward | | ------------- | ------------------------------------------------------------- | ----------- | ------------------------------------- | | Loop Initiate | Deposit $1k+ AND borrow 500+ USDVE AND LP 500+ on Hydrex | 7 days | +5,000 PP | | Loop Master | Deposit $10k+ AND borrow 5k+ USDVE AND LP 5k+ on Hydrex | 14 days | +20,000 PP + 10% multiplier (60 days) | | Full Stack | Deposit $25k+ AND borrow 12.5k+ USDVE AND LP 12.5k+ on Hydrex | 30 days | +50,000 PP + 20% multiplier (90 days) | #### 4. Pareto Zone & Health Badges (Silver+ Tier) | Badge | Criteria | Hold Period | Reward | | ----------------- | ----------------------------------------- | ----------- | ------------------------- | | Zone Keeper | Maintain Health Factor 1.5-2.0 | 7 days | +7,5000 PP | | Pareto Master | Maintain Health Factor 1.5-2.0 | 30 days | +15% multiplier (90 days) | | Capital Efficient | Maintain HF 1.05-1.1 on stablecoin vaults | 14 days | +20% multiplier (60 days) | #### 5. Activity & Retention Badges (All Tiers) | Badge | Criteria | Reward | | ------------------- | ----------------------------------------------- | ------------------------------------- | | Marginal Gains | Active vault 30 days with 10k+ USDVE debt | +10,000 PP | | Compound Efficiency | Active vault 60 days with 10k+ USDVE debt | +20,000 PP | | Efficient Frontier | 3+ vaults for 30 days with 10k+ USDVE debt each | +25,000 PP | | Diamond Hands | Active vault 90 days with 25k+ USDVE debt | +50,000 PP + 10% multiplier (90 days) | #### 6. Community & Referral Badges (All Tiers) | Badge | Criteria | Reward | | ---------------- | ------------------------------------------ | ------------------------- | | Influence Circle | Refer 10 active users who borrow 5k+ USDVE | +10% multiplier (60 days) | | Ambassador | Complete ambassador program | +20% multiplier (90 days) | #### 7. Base Ecosystem Badges (Bronze+ Tier) | Badge | Criteria | Hold Period | Reward | | ----------- | --------------------------------------- | ----------- | --------- | | Base Native | Hold a Basename | - | +1,000 PP | | Hydrex Ally | Provide $1,000+ LP on Hydrex USDVE/USDC | 7 days | +4,000 PP | | Base Maxi | Connect with Coinbase Smart Wallet | - | +2,500 PP | | Based | Use Vaultedge via the Base app | - | +5,000 PP | *** ### Earning Examples #### Example 1: Basic User (30 days) Deposits $10,000 collateral, borrows 5,000 USDVE, LPs all 5,000 USDVE on Hydrex. | Source | Calculation | PP | | --------------------- | ------------------------ | -------------- | | Deposit | $10,000 x 1 PP x 30 days | 300,000 | | Borrow (one-time) | 5,000 x 20 PP | 100,000 | | Hydrex LP | 5,000 x 2,5 PP x 30 days | 375,000 | | First Mover badge | - | 2,500 | | Committed Edger badge | - | 5,000 | | Debt Builder badge | - | 10,000 | | **Total** | | **792,500 PP** | Tier reached: **Silver** (\~30 days) #### Example 2: Full Loop User (30 days) Deposits $30,000 collateral, borrows 15,000 USDVE, LPs 15,000 USDVE on Hydrex. Qualifies for Loop Master badge. | Source | Calculation | PP | | ------------------------------------------- | ------------------------- | ------------------ | | Deposit | $30,000 x 1 PP x 30 days | 900,000 | | Borrow (one-time) | 15,000 x 20 PP | 300,000 | | Hydrex LP | 15,000 x 2,5 PP x 30 days | 1,125,000 | | Loop Master badge | - | 20,000 | | Loop Master multiplier (+10% on days 15-30) | 10% x \~1,012,500 | 101,250 | | Debt Builder badge | - | 10,000 | | **Total** | | **\~2,456,250 PP** | Tier reached: **Silver** (\~12 days) #### Example 3: Power User with Multipliers (60 days) Deposits $100,000 collateral, borrows 50,000 USDVE, LPs 50,000 USDVE on Hydrex. Earns Full Stack (+20%) and Pareto Master (+15%). | Source | Calculation | PP | | -------------------------------------------------- | ------------------------- | ------------------- | | Deposit | $100,000 x 1 PP x 60 days | 6,000,000 | | Borrow (one-time) | 50,000 x 20 PP | 1,000,000 | | Hydrex LP | 50,000 x 2,5 PP x 60 days | 7,500,000 | | Multiplier bonus (+35% on time-based, avg 45 days) | 35% x \~10,125,000 | 3,543,750 | | Badges (various) | - | \~200,000 | | **Total** | | **\~18,243,750 PP** | Tier reached: **Gold** (\~17 days) #### Example 4: Referral Earnings You refer a user who earns 7,925,000 PP (Example 1). Your referral bonus: 20% x 792,500 = **158,500 PP**. *** ### What Drives the Most PP | Priority | Action | Why | | -------- | ----------------------- | ----------------------------------------------------------- | | 1 | Complete the Full Loop | Deposit + Borrow + LP unlocks maximum earning + best badges | | 2 | Borrow more USDVE | One-time reward + enables LP earnings | | 3 | LP on Hydrex | Highest daily rate (25 PP per $1) | | 4 | Deposit more collateral | Enables larger borrows + daily accrual | | 5 | Stack multipliers | Up to +75% on all time-based earnings | | 6 | Refer active borrowers | 20% of their lifetime PP | | 7 | Stay active monthly | Required for airdrop eligibility | | 8 | Join early | More time to compound = permanent advantage | *** ### Important Notes * Pareto Points are non-transferable and are not tokens * Points do not guarantee future rewards * Badge criteria are checked via daily snapshots * Multipliers require maintaining criteria. Falling below pauses the multiplier until you qualify again * Must remain above the median PP of active users to qualify for the airdrop * Active status requires at least one contract interaction per month * Campaign parameters may evolve to ensure fairness and protocol health