The airdrop model is broken. Keyrock’s 2024 analysis shows 88% of tokens fall in value within months of their TGE.
Rumpel transforms the risk-reward equation by providing instant liquidity for points pre-TGE. By converting offchain points into tradable ERC-20 tokens, yield farmers can capture value immediately rather than speculating on uncertain airdrop outcomes.
Rumpel uses an onchain oracle to verify users’ offchain point balances and mint equivalent pTokens. When airdrops go live, users redeem these pTokens through the Rumpel Vault.
Rumpel's Auto-Sell feature provides automation for yield optimization, automatically converting accrued points into USDC on a weekly basis. Users can trade points from Resolv, EtherFi, Karak, Zircuit, Mellow, Symbiotic, Ethena, and now, HyperEVM.
Primer
Airdrop farming has become a game of diminishing returns. According to Keyrock’s 2024 analysis, 88% of airdropped tokens lose value within months of launch. Farmers often hold worthless allocations after months of capital commitment and opportunity costs. Traditional solutions compound these challenges through capital lockup requirements, prohibitive fee structures, and platforms designed for yield tokenization, not the point farming strategies driving today’s DeFi.
Rumpel has emerged as a protocol for yield farmers seeking to navigate this hostile environment. By tokenizing offchain loyalty points into liquid ERC-20 assets, the protocol enables users to capture value from point accumulation immediately while retaining the option to maintain exposure to the potential success of underlying protocols. Rumpel turns point farming from a binary bet on airdrop outcomes into a diversified strategy with multiple value capture mechanisms. Institutional liquidity provision and automated tools support this strategy and remove the need for active management that burdens traditional yield farming.
Among 62 airdrops analyzed by Keyrock, only eight tokens delivered positive returns 90 days post-TGE. The high failure rate reflects systemic issues including excessive fully diluted valuations (FDVs), insufficient liquidity, and tokenomics designed to extract value rather than reward early participants.
New token failures are often predictable through several factors:
For yield farmers, this pattern represents losses where months of capital deployment, gas fees, and opportunity costs end in allocations that result in minimal yield on capital deployed. The opportunity cost dimension proves particularly harmful. While dedicating resources to earn new token allocations, users miss out on more consistent yield strategies. The time value of money compounds these losses, as capital locked in point farming strategies for months or even years could generate meaningful yields through established DeFi protocols during the same timeframe.
Some teams attempt to address these issues by allocating a larger share of tokens to the community. Tokens with airdrop allocations above 10% are linked to stronger retention and better post-launch performance, according to Keyrock’s analysis. Despite this, most projects hesitate to share meaningful ownership.
Teams often prioritize insider control or long-term flexibility, which can create a structural imbalance where insiders benefit while retail participants carry much of the opportunity costs. The psychological impact on yield farmers is also notable. Repeated exposure to failed airdrops creates risk aversion among users that could prevent participation in promising projects, while encouraging participation in lower-yield opportunities.
Current Solutions Have Tradeoffs
Some solutions have emerged to make tradeable markets that facilitate speculation pre-TGE. These protocols attempt to improve liquidity for yield farmers by allowing them to exit point positions and realize yield earlier. However, each comes with tradeoffs in complexity, cost, or risk.
Whales Market offers pre-TGE trading and allows users to exit point positions earlier than traditional methods by selling points over-the-counter (OTC). However, its fee structure includes 1% resale fees and 2.5% settlement fees for both buyers and sellers, which eat into returns. While Whales Market reduces capital lockup compared to farming points until TGE, it still requires users to commit capital upfront as collateral.
Pendle and Spectra take a different approach by tokenizing the yield inherent to point-generating assets:
Pendle uses a system of principal (PT) and yield (YT) tokens to tokenize future yield streams. It has incorporated point farming as a yield trade, generating returns of up to 60% at peak periods. Still, its infrastructure is primarily designed for yield-based strategies, not for trading unvested or pre-token points.
Spectra offers a permissionless framework for creating yield markets and, like Pendle, concentrates on yield tokenization as its main value proposition.
Both platforms serve sophisticated DeFi users but address different use cases than Rumpel. Pendle and Spectra specialize in tokenizing onchain yield from existing point-generating assets. In contrast, Rumpel focuses on tokenizing offchain points.
Rumpel's Solution for Yield Farmers
Rumpel's point tokenization protocol on Ethereum reimagines the relationship between point accumulation and value capture for DeFi users. Rumpel converts offchain loyalty points into tradable ERC-20 tokens (pTokens). Users can immediately exchange these tokens on Uniswap v3 to access liquidity for points that were previously illiquid.
To earn pTokens, users create a Rumpel Wallet and participate in supported activities like staking, trading, or lending. As offchain points accumulate, the Rumpel Oracle verifies balances and enables them to mint pTokens equivalent to their earned points. These pTokens can be traded, sold, or held. When an airdrop goes live, Rumpel claims the tokens on users’ behalf and deposits them into the Rumpel Vault, where users can redeem their pTokens for the airdropped assets. For a full breakdown of Rumpel’s infrastructure, see the Initiation of Coverage report.
For example, users interested in earning Ethena points while maintaining liquid exposure can deposit sUSDe into the Pendle sUSDe pool via Rumpel. As the positions earn Ethena points over time from Pendle’s integrated points program, the Rumpel Oracle tracks and verifies accumulated points. Once verified, users can mint Ethena pTokens equivalent to their earned points. These pTokens can then be traded, held, or sold independently of the underlying yield position. Once Ethena launches its next airdrop, users holding pTokens will be able to redeem them through the Rumpel Vault to claim the corresponding ENA tokens.
The Auto-Sell feature automatically converts accrued pTokens into USDC via Uniswap v3 pools on a weekly basis. The protocol only sells pTokens while protecting principal assets. This lets users generate immediate returns through automated selling, maintain exposure to potential airdrop success, avoid making timing decisions or emotional trades, and reduce exposure to high airdrop failure rates.
Fluid looping strategies provide additional yield optimization by allowing leveraged point accumulation through recursive staking mechanisms. For example, a user could deposit wstETH into a vault, receive a yield-bearing token, and recursively re-deposit that token to amplify both yield and point earnings. These strategies allow users to maximize point generation from liquid staking assets like weETH and wstETH or stablecoins like sUSDe and GHO. The combination of leverage and liquidity creates capital efficiency advantages unavailable through traditional farming approaches.
Security considerations receive particular attention through Rumpel's customized Safe wallet implementation. The Rumpel Guard and Module system prevents misuse of pTokens while ensuring proper redemption mechanisms for legitimate airdrop claims. Rumpel Guard restricts wallet actions to a predefined allowlist and prevents users from claiming airdropped tokens that have already been sold as pTokens. Rumpel Module complements this by automating the claiming of airdropped tokens and transferring them directly to the vault for user redemption. Six completed security audits and an active bug bounty program with a maximum payout of $50,000 demonstrate the project’s commitment to protecting user assets while providing innovative trading capabilities.
Rumpel Straw
Rumpel Straw is the native point system used to reward users for using the Rumpel protocol. Chapter 3 of the Straw Program builds on the mechanics of Chapter 2 and continues to incentivize early activity across the platform. For Chapter 3, Rumpel has introduced Point Stream States for better yield transparency, automated oracle updates for faster minting, added 41 strategies from four ecosystems, launched new pToken markets, and enabled sENA rewards for LPs. Chapter 3 began accruing points on March 1, 2025, and distributes most rewards through continuous emissions, which grant Straw daily based on principal deployed and Uniswap v3 liquidity provided.
Institutional Advantage: Funds and Just-in-Time Liquidity
Rumpel's institutional appeal creates a secondary market that benefits retail users through deeper liquidity and improved price discovery. Funds can gain pre-TGE exposure to promising projects without operational farming complexity, while users receive immediate liquidity for their point positions.
For example, the Hyperliquid case illustrates a missed opportunity that Rumpel could enable in the future. If Hyperliquid points had been tokenized through Rumpel, institutions could have gained early exposure by purchasing points at a significant discount to their eventual value. Institutional demand would have captured meaningful upside and provided immediate liquidity to point farmers ahead of the token launch.
With Rumpel, institutions can gain scalable exposure to multiple protocols without needing to participate directly in farming operations. They can adjust positions flexibly based on evolving project signals, contribute liquidity through market making, and access structured exit options not typically available in traditional farming strategies.
This structure helps solve a core imbalance: individual users have the risk-tolerance to farm points on early-stage projects, while institutions may be more risk-averse when it comes to smart contract risk and opportunity costs. Rumpel facilitates point exposure transfers that increase capital efficiency across the crypto economy.
Current Markets and Protocol Partnerships
Rumpel’s architecture enables portfolio diversification through exposure to multiple point programs. Rather than concentrating risk in a single protocol’s points, users can trade tokenized points from a variety of protocols. These protocol integrations form the foundation of Rumpel’s current point farming offerings:
HyperEVM: HyperEVM is an Ethereum-compatible smart contract network integrated directly into Hyperliquid’s Layer 1 blockchain.
On June 17, 2025, Rumpel announced HyperEVM users can now earn liquid points with strategies from Sentiment and Hyperbeat.
Fluid: A unified DeFi protocol that integrates lending, borrowing, and DEX functionalities atop a shared Liquidity Layer.
Rumpel users can gain access to 10 Fluid strategies by looping stablecoins such as USDe, sUSDe, GHO, USDC, and USDT, or looping staked ETH and wsteETH.
Contango: A DeFi protocol where users can create leveraged positions by automating looping strategies through spot and money markets.
Rumpel offers 11 strategies from Contango where users can supply assets to Morpho or Aave lending vaults.
Pendle: Enables users to tokenize and trade the future yield of yield-bearing assets by separating them into Principal Tokens (PT) and Yield Tokens (YT), which allows for strategies such as fixed yield investments, yield speculation, and liquidity provision.
Rumpel users can accumulate liquid points from 18 Pendle strategies by holding LP shares for assets like sUSDe or principal tokens such as weETHs.
Resolv: Issues USR, a stablecoin pegged to the US Dollar and backed by a delta-neutral portfolio of ETH and BTC.
Rumpel users can execute three yield strategies from Resolv: holding RLP, stUSR, or USR.
Symbiotic: A restaking protocol that enables networks to enhance their security by leveraging shared validator resources and customizable staking arrangements.
Rumpel users can deposit assets like wstETH, sUSDe, and RETH across 20 Symbiotic strategies to earn liquid points and protocol rewards.
Mellow: Enables users to create and manage modular Liquid Restaking Tokens (LRTs) through customizable vaults, allowing curators to tailor risk and yield strategies across various decentralized finance platforms.
Rumpel users can earn liquid points by depositing into Mellow strategies such as the Ethena LRT Vault for sUSDe and stETH, or by holding tokens like Re7 LRT and ifsETH.
Ethena: Offers USDe, a synthetic dollar backed by delta-neutral hedging strategies.
Rumpel users looking to gain liquid Ethena points can lock USDe or provide sUSDe as collateral on Morpho.
Rumpel users can deposit assets like weETHs, amphrETH, and USDe to earn liquid points.
Karak: A restaking protocol that allows users to secure multiple protocols with a single staked position.
Rumpel users can restake weETH and USDe to earn tradeable points.
Kelp: A liquid restaking protocol that converts liquid staking tokens (like stETH or ETHx) into rsETH, which allows users to earn rewards from both Ethereum and EigenLayer staking.
Rumpel users can stake agETH to earn liquid points.
Euler: Euler is a borrowing and lending protocol that allows users to create custom credit vaults for a wide range of assets.
Rumpel offers wstUSR and USDC looping to earn liquid points.
Together, these strategies create a flexible framework for point farming across a diverse range of DeFi protocols.
Closing Summary
The post-launch declines of most airdropped tokens have created a major challenge for yield farmers, leading to increased risks when allocating capital to pre-TGE protocols. Traditional solutions either require capital commitments, focus on yield tokenization rather than point farming, or offer no risk management capabilities. As a result, farmers lack effective tools to manage risk in an environment where successes like Hyperliquid are rare exceptions.
Rumpel addresses this inefficiency by tokenizing points in a way that lets users either capture value immediately or maintain exposure to the underlying project. The Auto-Sell feature provides systematic profit realization, while institutional participation could create deeper liquidity that benefits all users. The combination of tokenization and automation offered by Rumpel could transform point farming from speculation into systematic yield generation.
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