Options Liquidity Mining

Incentive model using oTokens for sustainable liquidity provision

oTokenomics are a revolutionary concept introduced in Catex’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.

Options

oCATX tokens empower LPs with several strategic choices:

1. Purchase CATX with a Discount

   • Mechanism: Exchange oCATX for CATX at a dynamic Discount Rate.

   • Benefits: Capitalize on CATX’s market value for potential immediate profits.

   • Example: A LP converts 100 oCATX to 100 CATX at a 60% discount, paying $40 to acquire CATX worth $100 and potentially making $60 profit on selling.

2. Convert to veCATX

   • Mechanism: Convert oCATX to veCATX at a discounted rate.

   • Benefits: Gain voting power in governance and a share in trading fees and bribes.

   • Example: A LP converts 100 oCATX to veCATX at a 100% discount, meaning a 1:1 ratio, enhancing his voting influence and rewards.

Revenue Distribution from oCATX Redemptions

Revenue from oCATX redemptions is strategically allocated to strengthen the Catex ecosystem. Typically, Catex 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 CATX from the market, supporting its price rather than being distributed as USDC incentives or added to the treasury. This flexibility allows Catex to adapt and ensure sustainable growth and stability across different market environments.

This strategic distribution ensures a balanced flywheel mechanism, with 60% of weekly oCATX redemptions specifically designated for veCATX voters, thereby fostering a self-reinforcing cycle of growth and participation within the ecosystem.