Deposit
Liquidity Providers deposit USDC into the protocol Market Making Vault and receive OLP tokens in return, representing their deposit share of the vault.
Last updated
Liquidity Providers deposit USDC into the protocol Market Making Vault and receive OLP tokens in return, representing their deposit share of the vault.
Last updated
LPs can deposit USDC at any time into the LP Market Making Vault and receive the equivalent value in OLP tokens, representing a claim on the pool's assets and rewards. OLP tokens can be freely transferred or traded on prospective secondary markets. Liquidity pool tokens accrue rewards directly into the token value, rather than requiring a separate claiming module for rewards.
Prospective users may deposit through direct interaction with the protocol's smart contracts or through an existing user interface. The existing UI displays:
The current conversion ratio between USDC and OLP
The option to select an amount of USDC to deposit
The option to select a locking period
You will receive: The number of OLP tokens a user's given USDC deposit will convert to at the time of deposit
Lock boost: The boost in USDC <> OLP conversion on a user's deposits, given the user's locking length and vault collateralization. Non-locked deposits have a lock boost of 0.
LPs can optionally choose to lock their deposits for up to 365 days, boosting their rewards in the process through a discount on OLP price at mint. Locked deposits are represented through an NFT in the user's wallet and can be redeemed at unlock for the corresponding number of OLP tokens (deposit + bonus).
The boost is influenced by both the locking period and the vault's collateralization. If the vault is undercollateralized (<100%) and the locking period is 365 days, the boost provides an additional 6% OLP. When the collateralization is between 100 and 120, the boost scales linearly. No boost is applied if collateralization is 120 or higher.
For instance, imagine this scenario where the maximum annualized boost is 6% and the Market Making's collateralization is 110%:
Alice deposits 1,000 USDC when the OLP token value is 1 USDC, locking for 365 days
She receives an NFT representing her allocation of 1,030 OLP (3% boost)
Bob deposits 1,000 USDC with no lock to maintain flexibility to withdraw at anytime, but maintains his funds in the protocol for 365 days
He receives 1,000 OLP tokens (no boost)
After a year, baseline APY from trading + liquidation fees is 10%, which accrues directly to the OLP token
Alice unlocks and withdraws her OLP and receives 1,030 * 1.1 = 1,133 USDC
Bob withdraws his OLP and receives 1,000 * 1.1 = 1,100 USDC
This means Alice’s net APY is 13.3%, while Bob’s is 10%. Alice’s yield was 33% higher than that of Bob’s.
Users visiting the existing user interface will see the value "Lock Boost" vary as a function of the locking period selected. This value scales linearly to a year (365 days) according to the amount of time a user selects to lock their deposits.
