Rumpel: EigenLayer's three executives invest in a tokenized protocol to unlock liquidity for points | CryptoSeed

Author: Fairy, ChainCatcher

Editor: TB, ChainCatcher

(This article only introduces early projects and does not constitute investment advice.)

With the previous craze for Kaito Yaps, the potential of the points market has been validated once again, and this field still holds enormous room for development. Meanwhile, as a rising star in the points trading market, Rumpel officially debuted in September 2024.

Rumpel is a points tokenization protocol that provides secondary market liquidity and price discovery for off-chain loyalty points, bringing new opportunities to point holders, traders, airdrop hunters, and point issuers. As of now, Rumpel's protocol scale has surpassed $29.29 million, with a total points token market value reaching $277,421.

Rumpel has completed a round of financing, with participation from institutions like Dragonfly, Robot Ventures, and Variant Fund, and has also attracted three executives from EigenLayer: the Chief Operating Officer, the Engineering Director, and the Research Director. What exactly makes Rumpel so appealing?

The Crypto Journey of Founder Kenton Prescott

Rumpel was founded by Kenton Prescott. As early as 2017, when he was still an engineering student, Kenton began actively promoting the potential of blockchain technology. He graduated from the University of Florida in the United States, majoring in Aerospace Engineering and minoring in Business Administration.

During his time at university, Kenton developed the Rent-A-Plug project, which won first place in the ShellHacks competition. This project allowed any user or machine to rent power outlets by paying with cryptocurrency (based on the Ethereum network). Each outlet was equipped with a digital wallet capable of receiving tokens paid by users and would activate power at a rate of one token every five seconds. This project showcased his innovative thinking in blockchain applications.

In 2018, Kenton interned at MakerDAO and later became an integration engineer after graduation. He then founded the fixed income protocol Sense Finance, but the project announced its cessation of operations in 2023, prompting him to focus all his energy on Rumpel.

What Can Rumpel Do?

Rumpel allows users to convert their earned loyalty points into Rumpel Points Tokens (pToken) using a personal Rumpel wallet (a secure multi-signature wallet). As users accumulate points, the Rumpel Oracle system verifies the off-chain points balance and adjusts the user's minting limits for new pTokens accordingly.

When a project announces an airdrop, pToken holders can redeem their tokens for corresponding shares of the airdrop, including any future vesting allocations. This process ensures that users can leverage their earned points while providing transparency and liquidity within the ecosystem.

Rumpel supports various vesting plans. It features a function called "Redemption Rights" to handle these plans, accommodating different types of vesting arrangements. Rumpel employs Merkle roots and proofs, controlling the number of pTokens users can redeem at any time, ensuring compliance with specific vesting plans.

The key components of the Rumpel framework are Rumpel Point Token, Rumpel Wallet, Rumpel Oracle, and Rumpel Vault.

• Rumpel Point Token (pToken): An ERC20 token representing off-chain loyalty points and their future rewards. These tokens are directly linked to the points accumulated in the user's wallet at a ratio of 1:1 or 1:1000.
• Rumpel Wallet: A customized secure multi-signature wallet (Safe) designed for users to directly accumulate loyalty points. Users can create and manage pre-approved strategies within the wallet. Points earned through these strategies will be directly deposited into the Rumpel wallet.
• Rumpel Oracle: An off-chain system that verifies the points balance accumulated in the Rumpel wallet and updates the minting and redemption limits for pTokens in the Rumpel Vault.
• Rumpel Vault: A smart contract that manages all activities related to the minting and burning of pTokens. It receives continuous updates from the Rumpel Oracle regarding pToken minting limits and redemption details.

Additionally, Rumpel has its own reward program called Rumpel Straw. Rumpel Straw serves as both an incentive mechanism and a community-building tool, encouraging early adoption and ongoing usage. Participants earn Straw points by tokenizing points through Rumpel, providing liquidity in designated Uniswap V3 pools, and participating in Rumpel's social activities.

What Makes Rumpel Unique

Other players in the points space include Whales Market, Bubbly, and Pendle. Some markets require collateral, which may limit the flexibility and accessibility for users who need immediate liquidity. Additionally, if the points issuance protocol delays its TGE, it may mean that liquidity is locked during the sale for an uncertain period. Protocols like Pendle and Spectra focus more on leveraged points earning games rather than just buying and selling points.

What sets Rumpel apart is that it offers a comprehensive points tokenization protocol that allows users to access secondary market liquidity and price discovery for off-chain loyalty points without the need for collateral. Users can convert their earned points into pTokens and sell them, providing instant liquidity and reducing the risks associated with specific points programs.