While DeFi offers promising high yields and greater transparency in the financial sector, it inherently comes with its own set of risks, such as technical issues, operational mishaps, and vulnerabilities. Marketplaces like Neptune Mutual aim to safeguard participants against these risks with DeFi insurance.
Aside from providing custom solutions to mitigate risks in the space, Neptune Mutual recognizes the value of encouraging users’ participation and engagement for the ecosystem’s expansion. That’s why we offer several ways for users to participate in the Neptune Mutual ecosystem to yield rewards and incentives.
Through this blog, we aim to explore the various rewards and incentives that Neptune Mutual offers to enhance participation. By incentivizing users, Neptune Mutual ensures that its community is not just protected but also thriving.
Let’s start.
1. High Yields by Providing Liquidity#
To enhance the cover purchasing capacity of pools, Neptune Mutual relies on liquidity provided by users. More liquidity means more potential cover purchases, expanding the policy purchasing capacity of the pools.
If you have funds and want to utilize them for yielding returns, you can provide liquidity in the Neptune Mutual cover pools. You receive a percentage of the fees collected from the cover purchases if the cover purchase takes place in the pool you’ve provided liquidity to.
Neptune Mutual has two different types of cover pools: diversified and dedicated pools.
In a diversified cover pool, your liquidity is spread across all cover products available in the pool. Thus, your returns are calculated based on a percentage of the cover purchase fees generated from all products within the pool.
In contrast, your funds are allocated to a specific cover product in a dedicated pool. Returns depend solely on the cover purchase fees collected from that particular product.
By providing liquidity, you earn a share of the transaction fees collected from cover purchases in the pool you contribute to. This direct correlation between providing financial support and earning rewards enhances the attractiveness of investing in Neptune Mutual’s liquidity pools.
Recently, Neptune Mutual has seen a significant increase in cover purchases. In addition, LPs have gained returns of over 12% on cover purchases on the BNB Smart Chain network of our marketplace. This highlights the need for more LPs to contribute to the cover pools and receive rewards.
2. Get Incentives for Reporting Incidents Correctly#
At Neptune Mutual, we have integrated a governance process to resolve incidents. Users participating in the governance process with correct voting are incentivized.
Users can report on incidents, such as hacks or exploits, that may trigger the parameters of a cover pool policy. This process is crucial for the timely resolution of reported incidents. The voting process requires users to stake their NPM tokens and participate in validating or refuting incidents.
You can either vote whether the incident has taken place or vote against the first reporter, who might have falsely voted about the incident taking place. Upon the resolution of an incident, participants on the winning side collectively receive 60% of the staked tokens from the invalid reporters. The tokens will be distributed proportionally to the amount the valid reporters have staked.
While 30% of the invalid reporters' tokens are burned, the remaining 10% are awarded to the final reporter, who is pivotal in the incident reporting process. The final reporter could be either the first reporter or the candidate reporter, depending on the incident's resolution.
3. Receive Bounty by Reporting Bugs#
Neptune Mutual's Grants and Bounties Program offers developers and security researchers opportunities to earn rewards by contributing to the ecosystem's security.
The Web Bug Bounty Program encourages individuals to report vulnerabilities in web-based systems, such as XSS bugs, SQL injections, and remote code execution vulnerabilities. Rewards for qualifying vulnerabilities can reach up to $500 in stablecoins and NPM tokens.
The Smart Contract Bug Bounty Program is tailored for those with expertise in smart contract coding. It especially targets the Neptune Mutual Blue Protocol smart contracts coded in Solidity. Rewards for this program vary, with up to $50,000 in stablecoins and NPM tokens for critical vulnerabilities.
Both programs emphasize the importance of non-disruptive testing and offer substantial rewards for contributions that enhance the platform's security.
We have a detailed blog about Neptune Mutual grants and bounties that you should check out.
Neptune Mutual is actively engaging its community through various contests and participation opportunities. The participants are rewarded with lucrative grants like NPM tokens, NFTs, and stablecoins.
One notable initiative of the past was the gamified testnet contest on the Avalanche Fuji network. Users engaged with the platform by purchasing cover policies, providing liquidity, reporting incidents and bugs, and exploring marketplace features.
Out of all participants, 102 winners were chosen to receive Neptune Mutual's tradable NFTs, with the top two receiving exclusive soulbound NFTs that are non-tradable. Additionally, the first and second-place winners were awarded stablecoins as well.
Note that there are no ongoing airdrops currently. Future airdrops or rewards will be officially announced through our social media and community channels, such as X, Discord, and Telegram.
Furthermore, one more such example is the content creation program. It aimed at encouraging creatives, writers, and video producers to create original content on blockchain, DeFi, and Neptune Mutual's protocol.
Rewards for this program varied from $50 to $300 for written pieces and $50 to $2500 for videos, depending on the content's quality and engagement levels.
5. Receiving NPM Emissions on Cover Pools#
Neptune Mutual is soon launching an innovative reward system for liquidity providers (LPs) in its cover pools through the introduction of NPM emissions. This approach will distribute NPM emissions across selected cover pools within the marketplace, benefiting LPs who lock their Proof of Deposit (POD) tokens. Remember that the only pools chosen by the votes on liquidity gauge will qualify for NPM emissions.
We have recently launched the vote escrow feature on our marketplace in the Arbitrum network. So, be sure to visit the mainnet and lock your NPM tokens to receive veNPM.
The vote escrow mechanism allows users to lock their NPM tokens in exchange for vote escrow NPM (veNPM) tokens. Holding veNPM tokens not only boosts NPM emissions received but also significantly increases a user's voting power.
This increased voting power is crucial for veNPM holders to influence the distribution of NPM emissions in their favor. This means that the veNPM holders can vote in the snapshot voting of NPM allocation towards the cover pools where they have staked their liquidity with more power.
6. Get Discounted NPMs with Sushi Bonds#
Sushi has recently introduced a bond program featuring Neptune Mutual among its participants. This initiative allows users to purchase tokens at prices below the current market rate.
For members of the Neptune community, the NPM tokens can be utilized for various purposes. These include buying insurance coverage, providing liquidity, incident reporting, creating new cover pools, minting NFTs, and so on.
Individuals interested in purchasing NPM tokens can take advantage of the discounted rates offered by Sushi Bonds. However, buyers should note that there is a vesting schedule before the tokens are fully released.
While the program does not offer direct rewards, it presents a valuable opportunity to obtain NPM tokens at reduced prices. This offers significant financial benefits for future transactions within the Neptune Mutual ecosystem.
7. Get Project Native Tokens by Staking PODs#
As an LP, the major source of your return is the portion of the collected policy fees. Additionally, Proof of Deposit (POD) tokens can also be staked to earn further incentives.
Upon contributing liquidity, you'll receive POD tokens, which are essential for withdrawing liquidity during designated withdrawal cycles. Staking Proof of Deposit (POD) tokens is a feature offered to liquidity providers by Neptune Mutual.
Projects creating cover pools can offer extra rewards for LPs who choose to stake their PODs. Typically, these rewards are distributed in the form of the project's own tokens, enhancing the benefits of participation.
The staking periods for the PODs can differ between pools and are determined by the cover pool creators. We recommend always verifying the lockup duration before staking your PODs, especially if you anticipate needing to access your liquidity before the lockup period ends.
The rewards from staking PODs, referred to as Shield Mining Rewards, are available for redemption at any time. However, you can only release your staked PODs once the lockup period ends. This structured approach allows you to maximize your rewards while securing and sustaining the liquidity pool.
Final Words#
Participating in the Neptune Mutual ecosystem offers a multitude of ways for users to contribute and earn significant rewards. Whether through providing liquidity, reporting incidents, identifying vulnerabilities, or engaging in community initiatives, each activity is designed to incentivize user participation.
As Neptune Mutual continues to expand its features, we are also planning to provide further participation and reward opportunities. So, stay connected with Neptune Mutual through our official channels for updates on upcoming airdrops, rewards, and contribution activities.
Follow us on X and join our official Discord channel to never miss an update on Neptune Mutual.
