Rumpel: EigenLayer's three executives invest in a tokenized protocol that unlocks liquidity for points | Focus on ultra-early projects

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 development space. 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 for points holders, traders, airdrop hunters, and points 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 such as Dragonfly, Robot Ventures, and Variant Fund, and has also attracted three executives from EigenLayer, including the COO, Engineering Director, and Research Director. What is the charm of Rumpel?

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 school, 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 turning on the 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, after which he focused 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 limit 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 different vesting plans. Rumpel is equipped with a feature called "Redemption Rights" to handle these plans, which can accommodate various types of vesting arrangements. Rumpel employs Merkle roots and proofs, a method that controls the number of pTokens users can redeem at any time, ensuring compliance with specific vesting plans.

Key components of the Rumpel framework include 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 custom 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 used to verify the accumulated points balance in the Rumpel wallet and update the minting and redemption limits of 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 continued use. 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 needing immediate liquidity. Furthermore, if points issuance protocols delay their TGE, it may mean that liquidity is locked during sales for an uncertain period. Protocols like Pendle and Spectra focus more on leveraged points earning games rather than just buying and selling points.

What makes Rumpel unique 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.