oTokenomics
Last updated
Last updated
oTokenomics are a revolutionary concept introduced in Lynex’s DeFi ecosystem, representing a commitment to innovation and stability in decentralized finance. oTokenomics specifically addresses challenges like token devaluation and incentive misalignment for Liquidity Providers (LPs), steering towards a sustainable alignment of user and protocol interests.
oLYNX tokens empower LPs with several strategic choices:
Purchase LYNX with a Discount
Mechanism: Exchange oLYNX for LYNX at a dynamic Discount Rate.
Benefits: Capitalize on LYNX’s market value for potential immediate profits.
Example: A LP converts 100 oLYNX to 100 LYNX at a 60% discount, paying $40 to acquire LYNX worth $100 and potentially making $60 profit on selling.
Convert to veLYNX
Mechanism: Convert oLYNX to veLYNX at a discounted rate.
Benefits: Gain voting power in governance and a share in trading fees and bribes.
Example: A LP converts 100 oLYNX to veLYNX at a 100% discount, meaning a 1:1 ratio, enhancing his voting influence and rewards.
Revenue from oLYNX redemptions is strategically allocated to strengthen the Lynex ecosystem. Typically, Lynex follows a structured approach, though this may vary depending on market conditions and ecosystem performance. For instance, during a downtrend, a larger percentage may be used to buy back LYNX, supporting its price rather than being distributed as USDC incentives or added to the treasury. This flexibility allows Lynex to adapt and ensure sustainable growth and stability across different market environments. The ideal allocation of oLYNX redemption revenue is structured as follows:
30% used to buyback LYNX and bribed as bveLYNX
30% incenvies (bribed) as USDC
40% allocated to the treasury for operations and marketing
This strategic distribution ensures a balanced flywheel mechanism, with 60% of weekly oLYNX redemptions specifically designated for veLYNX voters, thereby fostering a self-reinforcing cycle of growth and participation within the ecosystem.
$oLYNX token address: 0x63349BA5E1F71252eCD56E8F950D1A518B400b60
