Two Point-Earning Schemes

A point incentive system is a rewards mechanism designed to motivate user participation and engagement. Users are expected to receive token airdrop when project's TGE takes place based on their activities (e.g., trading, staking, participating in governance, or providing liquidity, etc). There are two primary schemes where points are generated in the market:

• With Asset Deposits: Mainly associated with DeFi protocols, such as lending, stablecoins, staking/restaking; and purchasing assets).

• Without Asset Deposits: Trading, listing assets, invites and other social activities.

Coral employs different integration methods and corTokenization processes for two types of points.

	With Asset Deposits	Without Asset Deposits
Integration	Use LST/LP token/Token Receipt which users receive when stake assets or make purchase on other protocols	Use wallet addresses with which users interact with other protocols
Conversion Process	Points are converted to corTokens directly	Users draw blind boxes to determine how much percent of points can be converted to corTokens
Unlocking	Base + Acceleration	Base + Acceleration

Blind Box For Points w/o Asset Deposits

Blind boxes are only applied to points that are not generated from asset deposit or purchasing. Once the number of points that participants hold are verified, they need to draw the blind box to determine the percent of points that can be converted into locked corTokens.

Before the corresponding corToken liquidity pool officially releases, relevant parameters should be specified:

• Conversion Ratio (CR): Each time when a blind box is opened, a x percentage of the participant's total remaining points will be converted into locked corTokens.

• Probability to CR (PtCR): The likelihood of x, which is y.

• Relationship Between x and y: The sum of y corresponding to x is equal to 100%.

For example

If Alice has 10,000 Reef Points (Coral points) and draws a blind box showing 20% (x), this means that 20% of her total Reef Points will be converted to locked corTokens, which is 10,000 * 20% = 2,000, leaving her with 8,000 Reef Points.

The probability to draw 20% may be 40% (y), meaning Alice has a 2 out of 5 chance of drawing a blind box with a 20% Conversion Ratio.

When can you draw blind box?

There are three free draws every 8 hours each day, 2:00 AM, 10:00 AM, and 6:00 PM (UTC). Users could spend Reef Points or other specified assets to obtain additional draws for blind box.