🧐【Rational Analysis】Binance Alpha New Regulations Provide Liquidity to Earn Annual Returns and Alpha Points Spark Controversy?｜Latest Policy Interpretation + Practical Suggestions:
🚨Key Points: Forming LP itself will not increase Alpha points!
#Binance After this announcement, many people's first reaction was: "The rules have changed again, is it harder for ordinary users to earn points now?"
Many interpreted it as a new policy for everyone to compete for Alpha points, and I see the market sentiment is quite dissatisfied;
But actually, there is a misunderstanding here——
In fact, this change has little impact on us ordinary users;
Because it only changed the scoring rules for balances, and did not introduce a new way to increase Alpha points:
Previously, balances only counted exchange + wallet balances; now balances count exchange + wallet + LP assets;
This rule change is aimed at those who want to form LP but are worried about insufficient balance points. If you do not form LP, your balance points are sufficient as well, and there is no impact!
For example: Someone takes assets to provide liquidity (for instance, a total of 2000u of zkj~u), this 2000u of assets were not counted in the total balance before, now they are counted in the total balance;
In simple terms, it encourages large holders to form LP, and similar to the last announcement, it prevents studios from arbitraging with air tokens in an upgraded version;
For detailed interpretation, please see 👇
1. Policy Interpretation:
1️⃣ Inclusion of PancakeSwap LP Assets:
Starting from June 11 at 8:00, LP assets on PancakeSwap V2/V3 on the BNB Chain (must meet conditions) can also count towards Alpha points.
Previously, points mostly only counted spot assets, and LP assets were ignored. Now LP assets become "point productivity" and will attract more funds to do LP.
2️⃣ What kind of LP assets qualify?
Must be one side Alpha token, and the other side is either an Alpha token or a token already listed on Binance spot.
3️⃣ Tiered Points Rules
$100 to < $1,000 = 1 point/day
$1,000 to < $10,000 = 2 points/day
$10,000 to < $100,000 = 3 points/day
$100,000 and above = 4 points/day
A single user can earn a maximum of 4 points per day, regardless of the size of the assets, capped at 4 points.
2. Potential Impact & Risks:
1️⃣ For Ordinary Users:
If you already hold Alpha tokens, you can consider pairing them to provide PancakeSwap LP to increase point earnings.
But doing LP has impermanent loss risks, so market fluctuations need to be noted.
2️⃣ For Big Holders/Studios:
The daily point cap for a single user is 4 points, directly limiting the space for point farming.
However, multiple accounts may still open for arbitrage; we need to see the subsequent monitoring mechanisms.
3. Personal Suggestions:
Personal suggestion:
If you have idle Alpha tokens + paired tokens, you can try providing PancakeSwap LP to increase annual returns, but pay attention to token fluctuations and control LP impermanent losses.
I do not recommend pure beginners to play, as it involves range settings and slippage hard losses; I only suggest users with certain DeFi experience to play.
Additionally, this rule change is aimed at those who want to form LP but are worried about insufficient balance points. If you do not form LP, your balance points are sufficient as well, and there is no impact!
Let’s continue enjoying the music and dancing!
