What is Points & Airdrop?
Points and airdrops are pre-token loyalty rewards that perpetual DEXs grant to users for activity such as trading volume, open interest, or referrals. Points accumulate off-chain and are later converted into a token distribution (airdrop) at a token generation event, giving traders speculative future value alongside any funding yield.
A points program is a pre-token incentive scheme run by perpetual DEXs (and some CEXs) to bootstrap liquidity before they launch a native token. Traders earn points for measurable activity — notional volume traded, open interest held, deposits, or referrals — tracked off-chain on a leaderboard. When the exchange holds its token generation event (TGE), accumulated points are converted into an airdrop: a one-time distribution of the new token, effectively a retroactive reward for early usage.
Because points have no fixed on-chain price until the TGE, their value is an estimate: it depends on the token's eventual fully diluted valuation (FDV), the share of supply allocated to the airdrop, and how many total points the community earned. The same $1 of trading volume can be worth wildly different point totals across venues, and per-point dollar value only crystallizes at listing. This makes points a speculative — not guaranteed — asset.
For a funding-rate arbitrageur running a delta-neutral position (long on one venue, short on another), points are a critical second income stream. A delta-neutral book already generates volume and open interest on point-farming DEXs as a byproduct of holding the hedge, so the trader collects funding carry and farms points simultaneously with no extra directional risk. Estimated points value can rival or exceed the raw funding APR.
This is why orbitperpscreener.com surfaces a Combined APR — funding APR plus an estimated points value — in a single column. When comparing two venues that pay similar funding, the one with an active, richly-valued points program is the better leg. But the estimate is only as good as its FDV assumption: a lower-than-expected TGE valuation, dilution, or a points-cap can shrink realized value, so treat the points portion as upside, not as locked-in yield.
Estimating point value on a delta-neutral leg
- •Trader holds a $50,000 short on a point-farming DEX as the hedge leg of a delta-neutral pair.
- •DEX awards 5 points per $1,000 of daily volume; the trader turns over $50,000/day → 250 points/day.
- •Over a 30-day farm: 250 × 30 = 7,500 points earned.
- •Estimated program: token FDV $400M, 8% of supply to airdrop = $32M pool, ~2B total community points.
- •Per-point value ≈ $32,000,000 / 2,000,000,000 = $0.016.
- •Estimated airdrop value: 7,500 × $0.016 = $120 — earned on top of funding carry, at no extra directional risk.
FAQ
What is the difference between points and an airdrop?
Points are the off-chain tally of your activity that accrues before a token exists. The airdrop is the actual on-chain token distribution at the token generation event, where accumulated points are converted into tokens. Points are the promise; the airdrop is the payout.
How do funding arbitrageurs earn points without extra risk?
A delta-neutral funding trade requires holding a long on one venue and a short on another. That position generates trading volume and open interest — exactly the metrics point programs reward — as a byproduct of the hedge. The trader farms points while remaining market-neutral, adding yield without taking directional exposure.
Why is estimated points value uncertain?
A point has no market price until the token lists. Its dollar value depends on the token's eventual FDV, the percentage of supply allocated to the airdrop, and the total points earned across all users — none of which are final until the TGE. Dilution, low listing valuations, or points-caps can all reduce realized value below the estimate.
Should points count as part of arbitrage APR?
They can be added as an estimated Combined APR to compare venues, but they should be treated as upside rather than guaranteed yield. Funding carry is realized continuously; points value is speculative and only crystallizes at listing, so size positions on the funding side first and treat points as a bonus.
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