Rumpel Labs, a decentralized tokenization platform, has experienced a significant increase in its total value locked (TVL) since its September launch. As per DefiLlama data, the Ethereum-based application has a record $46 million in TVL, up 760% over the last month.
Rumpel had about $7 million in TVL on November 19, adding $39 million in the past week alone.
The platform positions itself as a point tokenization protocol. It allows users to tokenize off-chain loyalty points, which can then be traded on decentralized secondary markets. This opens new opportunities for point holders, airdrop hunters, and point issuers.
Loyalty points have become an increasingly popular incentive mechanism to reward early adopters, but holding them doesn’t provide any benefit until the airdrop or token launch. Rumpel wants to make the points market more dynamic and enable price discovery by tokenizing these points on blockchain.
The platform is based on Ethereum, enabling users to tokenize points by converting them into ERC-20 tokens that represent the points earned off-chain and their future rewards. Some points are wrapped into Point Tokens in lots of 1000, called kilo point tokens, or kpTokens.
After a project announces an airdrop, point tokens can be redeemed by their holders for some reward token via the Rumpel Vault.
Since its launch in late September, Rumpel has supported some of the most popular Ethereum-based projects offering points, including Ethena, Symbiotic, Zircuit, and Karak.
Rumpel users can tokenize their points by locking corresponding tokens or points. As of this writing, Wrapped eETH (WEETH) accounts for two-thirds of total deposits, followed by AMPHRETH with 13% and RSUSDE with 12%. WEETH and RSUSDE are liquid staking and restaking tokens related to Ethena, while AMPHRETH is related to Amphor Labs on Symbiotic.
On November 21, Rumpel saw record token inflows when nearly $14 million worth of WEETH was deposited on the platform. Â
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