oCATX

The Future of Liquidity Incentives

oTokens 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.

Benefits of oTokens

oTokens offer multiple benefits:

1. Reduced Selling Pressure on CATX: oCATX can be exchanged for CATX at a discounted rate, easing sell-off pressures.

2. Sustainable APRs: Consistent and sustainable APRs are maintained due to the positive impact of oCATX on the CATX-ETH pool.

Call 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, enhancing his voting influence and rewards.

Revenue Distribution from Discount Rates

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

• A part is redistributed to top-performing gauges/pools, benefiting veCATX voters.

• The remainder bolsters the treasury for future growth.

• These allocations are subject to market dynamics and community voting.

oCATX token address: To be added soon.