> For the complete documentation index, see [llms.txt](https://lynex.gitbook.io/lynex-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://lynex.gitbook.io/lynex-docs/tokenomics/tokens/olynx.md).

# oLYNX

oTokens 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.

### Benefits of oTokens

oTokens offer multiple benefits:

1. **Reduced Selling Pressure on LYNX**: oLYNX can be exchanged for LYNX at a discounted rate, easing sell-off pressures.
2. **Boosted Liquidity**: Encourages LPs to lock rewards into the LYNX-ETH pool, amplifying liquidity.
3. **Sustainable APRs**: Consistent and sustainable APRs are maintained due to the positive impact of oLYNX on the LYNX-ETH pool.

### Call Options

oLYNX tokens empower LPs with several strategic choices:

1. **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.
2. **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, enhancing his voting influence and rewards.
3. **Redeem for LYNX-ETH LP (Coming soon)**
   * **Mechanism**: Redeem oLYNX for LYNX-ETH LP tokens with a dynamic discount based on lockup duration.
   * **Benefits**: Direct investment into LYNX-ETH pool at a reduced rate, enhancing LP yield.
   * **Example**: A LP uses 100 oLYNX to purchase LYNX-ETH LP tokens with a 70% discount for 60 days, enhancing his stake and rewards.

### Revenue Distribution from Discount Rates

Revenue from 'Discount' rates is strategically allocated to enhance the Lynex ecosystem:

* A part is redistributed to top-performing gauges/pools, benefiting veLYNX voters.
* The remainder bolsters the treasury for future growth.
* These allocations are subject to market dynamics and community voting.

{% hint style="info" %}
$oLYNX token address: [0x63349BA5E1F71252eCD56E8F950D1A518B400b60](https://lineascan.build/address/0x63349ba5e1f71252ecd56e8f950d1a518b400b60)
{% endhint %}


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