A pseudonymous crypto founder, known as Rooter, who has been vocal about his criticisms of DeFi’s points trend, has launched his own points program on Suilend, a prominent borrow-and-lending protocol on the Sui blockchain. The program, unveiled on Tuesday, aims to address some of the common issues encountered by protocols when incentivizing users with points, often as a precursor to introducing a token.
Suilend’s incentives program is part of the broader landscape of Sui’s DeFi ecosystem, which has seen significant growth this year, driven by market resurgence and initiatives like the Sui Foundation’s “Sui Rewards” program. Protocols like Suilend have been offering attractive interest rates, with some reaching as high as 19% on stablecoin deposits, thanks to these incentives.
Rooter, along with Suilend’s team, previously contributed to building Solend, one of Solana’s leading borrow-and-lend protocols. However, Rooter has criticized certain points programs within the Solana ecosystem for their lack of transparency and potential predatory nature. He has described current points systems as “predatory, lazy, and akin to gambling.”
In contrast, Sui’s points program distinguishes itself by leveraging blockchain technology to ensure transparency and accountability. Points earned by users, such as those for depositing USDC, are recorded on the blockchain, allowing for greater visibility and interoperability with other smart contracts.
Suilend’s points distribution is designed to be fair and proportional, with 10 million points distributed daily among users based on their deposit amounts. The program is intended to run for several months, although Rooter emphasized that it will not be indefinite. Whether the program will lead to the creation of a token remains uncertain, as founders often refrain from discussing such plans openly due to regulatory considerations.
With Suilend’s TVL (Total Value Locked) reaching $45 million and experiencing rapid growth, its points program is expected to attract significant attention within the Sui DeFi ecosystem. However, its ultimate impact and potential tokenization remain to be seen.
