> For the complete documentation index, see [llms.txt](https://gremlix.gitbook.io/docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://gremlix.gitbook.io/docs/protocol/points-farming.md).

# Points Farming

## What are DEX Points?

Many Perpetual DEX protocols in their early stages run **points programs** — off-chain incentive systems that reward users with "points" proportional to their trading volume and/or liquidity provided. These points are later converted to the protocol's native token at a Token Generation Event (TGE).

Points farming is a well-established DeFi strategy: by generating high trading volume on a DEX that has not yet launched its token, early participants accumulate a large allocation of the future token — often at significant discount to its eventual market value.

## How Gremlix Farms Points

Every grid order that executes on a partner Perpetual DEX generates **trading volume**. That volume earns points according to the DEX's reward formula.

```
User deposits USDC
       │
       ▼
Grid strategy executes thousands of buy/sell orders
       │
       ▼
Each order = trading volume on Perp DEX
       │
       ▼
Trading volume → DEX points accumulate
       │
       ▼
At TGE: Points → DEX tokens
```

Because Gremlix vaults run automated grid strategies **24/7**, the volume generated per dollar deposited is substantially higher than a typical manual trader — maximizing points accumulation efficiency.

## Perpetual DEXs

Gremlix currently integrates with:

| DEX      | Status | Points Program         |
| -------- | ------ | ---------------------- |
| HyENA    | Active | Points → Token at TGE  |
| Ethereal | Active | Points → Token at TGE  |
| Pacifica | Active | Points -> Token at TGE |

> DEX list may expand as new DEXs with active points programs are added.

## On-Chain Points Tracking

Gremlix tracks accumulated points via the Point contract — an ERC20 token minted by the Keeper. This provides:

* **Transparent accounting** — all points are recorded on-chain
* **Fair distribution** — proportional to vault share holdings at harvest time
* **Composability** — Point token can integrate with other DeFi protocols

The conversion from point token to actual DEX tokens occurs when the DEX conducts its TGE.

## Points as a Yield Multiplier

Points farming is a **bonus yield layer** on top of grid trading profits:

```
Total Vault APR = Grid Spread APR + Points APR

Example (USDC vault):
  Grid spread:    ~65% APR
  DEX points:     ~15-100% APR equivalent (at expected TGE valuation)
  ─────────────────────────────────
  Total:          ~80-165% APR target
```

The points APR is inherently uncertain — it depends on the future token price at TGE. However, given the early-stage nature of these DEXs and typical launch valuations, points programs have historically provided substantial additional returns.

## Risks of Points Farming

| Risk            | Description                                      |
| --------------- | ------------------------------------------------ |
| No TGE          | DEX may never launch a token                     |
| Token dump      | TGE token may have low value / immediate selloff |
| Program changes | DEX may modify or cancel points rules            |
| Sybil filtering | DEX may discount volume identified as automated  |

Gremlix treats points as a **bonus yield** — the grid trading strategy is profitable on its own. Points are upside, not a core assumption.