What are Restaking Points?
Restaking points are off-chain loyalty metrics used by restaking protocols to track and reward user participation before token launches. These points accumulate based on the amount and duration of assets restaked, serving as a way to recognize early supporters and distribute future token airdrops proportionally to contribution.
The points system emerged as a popular mechanism for bootstrapping restaking protocol adoption. By offering points instead of immediate token rewards, protocols can incentivize participation while delaying tokenomics decisions. Users accumulate points hoping they will convert to valuable token allocations when protocols launch their governance tokens.
How it Works
Restaking points typically accrue based on a simple formula combining deposit size and time. A common structure awards points per ETH per hour, meaning larger deposits held longer accumulate more points. For example, depositing 10 ETH for 30 days might earn 10 times more points than depositing 1 ETH for the same period.
Different protocols have their own point systems with varying names: EigenLayer has restaked points, Ether.fi has loyalty points, Renzo has ezPoints, and Kelp DAO has Kelp Miles. Some protocols run multiple concurrent point systems, rewarding users with both protocol-native points and underlying platform points (like EigenLayer points) simultaneously.
Points are tracked off-chain in protocol databases rather than on-chain, reducing gas costs but requiring trust in the protocol to accurately record balances. Protocols typically provide dashboards showing accumulated points and relative rankings among participants.
The ultimate value of points depends entirely on the eventual token conversion ratio, which remains unknown until airdrop distribution. Historical precedent suggests points can be highly valuable or relatively worthless depending on token launch valuations and total points in circulation.
Practical Example
You deposit 5 ETH into Renzo Protocol for liquid restaking. Over 90 days, you accumulate 50,000 ezPoints based on Renzo's point emission rate. You also simultaneously earn EigenLayer points for your restaked position. When Renzo launches its REZ token with a 5% airdrop allocation to point holders, your 50,000 points convert to REZ tokens proportional to your share of total points.
Why it Matters
Restaking points have become a dominant meta in DeFi yield farming, often representing the majority of expected returns from restaking positions. However, they carry significant uncertainty since conversion rates are unknown and protocol token valuations are speculative. Understanding point mechanics helps users optimize their restaking strategies and set realistic expectations. Fensory tracks restaking point programs and provides analysis to help you evaluate which point farming opportunities offer the best risk-adjusted potential returns.