Rumpel Labs is set to launch a new decentralized finance (DeFi) protocol in September, designed to enable users to tokenize and trade airdrop points. The announcement, made on August 26, highlights that the initiative is backed by venture capital firms such as Dragonfly and Variant. Rumpel’s goal is to enhance liquidity and price discovery for off-chain loyalty points, creating new opportunities for point holders, traders, airdrop hunters and issuers.
Rumpel enters a competitive field alongside other emerging protocols like Nudge, which aim to solve issues with existing user attraction and incentive methods in Web3. Nudge is developing a two-sided marketplace where protocols offer incentives to users for redirecting on-chain assets, liquidity and engagement.
The current airdrop model faces challenges, including token underperformance and disputes over arbitrary payouts. Rumpel noted that due to underwhelming allocations and surprise airdrop criteria, returns for point farmers have fallen short of expectations for early 2024.
Rumpel emphasized that many users feel they are “late to points programs” or are hesitant to expose their capital to excessive smart contract risks. Others are deterred by the complex process required to earn extra allocations before an airdrop.
Crypto researcher Aylo, the pseudonymous founder of Alpha Please, noted in a July post on X that 23 out of 31 tokens distributed through significant airdrops have lost value since their initial listings, with only two outperforming Bitcoin during a comparable period.
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Jonathan Joseph, co-founder of real-world asset platform SmartFunds, commented that the market may have reached “peak airdrop”, emphasizing the need for models that bring liquidity to new protocols in a way that benefits all stakeholders.
Rumpel aims to overcome the limitations of traditional airdrops by allowing users to wrap each earned point into a Rumpel Point Token via a specialized wallet. This feature enables point farmers to sell points, point investors to buy them and point issuers to continue issuing points with greater transparency regarding their tangible value.
Cre: cointelegraph.
I’m Jessi Lee, currently living in Singapore. I am currently working as a trader for AZCoin company, with 5 years of experience in the cryptocurrency market, I hope to bring you useful information and knowledge about virtual currency investment.
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