Introducing OLE

6 min readJun 30, 2022

The OpenLeverage token OLE is live! It will become transferable upon further announcement.

The token has been deployed to Ethereum at 0x92CfbEC26C206C90aeE3b7C66A9AE673754FaB7e, bridged to BSC and KCC via Multichain, and will be bridged to more EVM-compatible chains once the deployment is done.

Alongside the launch of OLE, we are also introducing:

  • Retroactive rewards for past users of the protocol
  • xOLE, A time-weighted voting escrow
  • Trading and lending boost liquidity mining
  • A governance process that votes for incentive distribution

OLE is not available in prohibited countries or jurisdictions. If you are located in, incorporated, established in, or residents of restricted regions, you are not permitted to receive a distribution of or transact in OLE, including retroactive rewards.

Community-Focused Growth

The inception of OpenLeverage has enabled all users more accessibility to the decentralized financial infrastructure of the crypto space.

Alongside our commitment to the philosophy of decentralization and permissionless, we have developed a more secure and efficient way for all users to participate in lending and trading. A permissionless margin trading market allows anyone to create markets, lend and borrow, and connect to trading venues to serve the unsatisfied market. Users have access to trading with the highest security standards, no counterparty risk, and complete inclusion.

Our success is indicative of the considerable demand for permissionless financial services.

Since our mainnet launch at the end of 2021, OpenLeverage has grown exponentially, with over $650 million in trading volume, more than 283 markets created, and over 22,000 unique lenders and traders.

We attribute our success to our strategies and campaigns. We have established a direct line of communication with our community to fully understand their wants and needs, while collaborating with media, notable investors, and influencers to strengthen the OpenLeverage brand.

Introducing the token

With a recognized product and robust organic growth, the OpenLeverage protocol is set for the next phase of its development — implementing its tokenomics and building a self-sustaining community through the launch of OLE.

OLE is the native token that enables shared community ownership and protocol usage incentives. It will be minted by trading, lending, referring new members, and participating in Clans Clash.

Locking the LP token of the OLE trading pair of DEX into a time-weighted escrow allows the OpenLeverage community to truly own and govern the protocol, share protocol revenue, boost earning by usage, and build self-sustaining DEX liquidity.

The dual token system is designed to promote liquidity, protocol usage, governance, and the self-sustainability of OpenLeverage.

A total of 1,000,000,000 OLE have been minted and will be vested over five years, starting on the date when OLE becomes transferable. The total supply of OLE is as follows:

  • 45.00% or 450,000,000 to the DAO treasury for community incentives, including but not limited to retrospective rewards, trading, lending, xOLE holders rewards, campaigns, and marketing events;
  • 9.60% or 96,000,000 to an ecosystem development treasury;
  • 28.40% or 284,000,000 to past investors of the OpenLeverage Foundation;
  • 17.00% or 170,000,000 to founders, employees, and advisors.

A maximum perpetual inflation rate of 3.00% per year will increase the supply of OLE after five years, ensuring the community has the resources to continue contributing to the protocol.

When OLE becomes transferable, approximately 4.6% of the OLE supply will be liquid.

Rewards distribution

OLE can be earned from using the protocol, e.g. trading, lending, referral, or staking LP tokens to xOLE.

All rewards calculations and distributions operate on a 21-day cycle referred to as an epoch.

During each epoch, all OLE earned from protocol usage will be claimable and transferable 7 days after the end of the epoch.

Retroactive rewards

The success of OpenLeverage is the result of thousands of community members that have been lending, trading, and inviting their community to join the journey over the past 12 months. These early community members will naturally serve as responsible stewards for OpenLeverage and will foster the future growth of the protocol.

7.35% of OLE ‘73,500,000 OLE’ has been allocated to historical lenders, traders, and NFT holders, based on a snapshot ending June 30th, 2022 at 12:00 PM UTC.

The allocation will follow these rules:

  • All rewards accumulated on BNB and KCC will be counted as retroactive rewards;
  • 4,000,000 OLE tokens will be distributed to lenders and 2,000,000 OLE will be distributed to traders on the Ethereum network;
  • Active addresses on the Kovan testnet before December 20th, 2021, will enjoy 25% extra rewards on the mainnet, including Ethereum, BNB Chain, and KCC;
  • 50% of the first retroactive reward epoch on the BNB Chain will be distributed via Solv NFT voucher and vested until March 1st, 2023;
  • 100 OLE distributed to each NFT holder, earned before and including June 30th, 2022;
  • Discord Active member reward, 1,000 OLE for level 10 and 3,000 OLE for level 20.

70% of retroactive rewards will be equally vested along with 13 epochs, approximately nine months.

Retroactive rewards vesting can be boosted up to 25% by trading during each epoch. More details will be provided before the OLE transferable date.

All retroactive rewards will be distributed to the respective chain where they have been earned.

Staking and xOLE

xOLE represents the governance token for OpenLeverage. Users receive xOLE as a receipt for providing OLE-BUSD liquidity on a designated partner DEX and subsequently staking their LP tokens on OpenLeverage into a time-escrowed contract. Users may elect to lock their LP tokens for a minimum period of two weeks up to four years. Users who lock for the maximum duration (4 years) will receive 436% xOLE compared to those who lock for the minimal duration (2 weeks), similar to the Curve vote-escrowed model.

xOLE, therefore, encourages active liquidity provisioning for OLE and directly aligns token holders with the protocol’s interest over a longer time horizon.

xOLE holders will get the following benefits and privileges:

  • Receive 50.00% of generated trading fees from the epoch. The accumulated fees will buy OLE from the open market for the 7 days after the end of each epoch, then distribute equally to xOLE holders.
  • Receive more OLE tokens, further increasing the field for LP locking.
  • Up to 2.4x earning boost on your lending and trading according to the LP value locked and the time left to unlock.
  • Participate in governance for incentive distribution.

Governance for incentives distribution

xOLE holders will be eligible to participate in regular epoch voting rounds to determine lending and trading rewards for individual token pairs that meet certain eligibility criteria. Up to 47% of the total OLE supply, or 470 million tokens, have been designated to the OpenLeverage DAO fund which will continuously provide liquidity incentives.

The votes for each epoch will be taken using Snapshot, an off-chain, gasless platform, and will be reset every epoch, lasting approximately 21 days. The OLE tokens used to incentivize each token pairing will be split 30/70, with 30% of OLE going towards lending activity and 70% towards trading activity. The reward split between trading and lending can also be decided by the governance process.

Investors, Employees, and Advisors

As per the contractual off-chain agreement with all our previous investors, their allocation will require 90 days of lockup before being linearly vested by smart contracts over four years.

Founders, employees, and advisors of OpenLeverage Foundation will be issued OLE. All OLE distributions will be subject to 90 days of lockup before linearly vested by the smart contract over five years.

All unvested tokens will not be able to participate in the staking rewards or governance process.

OpenLeverage DAO

A healthy and robust protocol comes from the decisions of our members, which enables the success and longevity of the OpenLeverage protocol.

In the spirit of decentralization and permissionless access, we intend to launch the OpenLeverage DAO within the next 6–12 months and are working tirelessly to expedite the process to transfer full governance of the protocol to our users. We want to incorporate our community to make critical decisions about the future of OpenLeverage.

Open-source & Audits

We have followed secure development best practices throughout OpenLeverage’s development. We view security as one of our core values and are committed to following security best practices while minimizing our technical debt.

All smart contract source codes for governance contracts and xOLE time-weighted voting escrow contract can be found here.

Our security review process includes a full-length audit from Peckshield and Certik, with a one-week audit contest by Code4rena. No critical issues were found. Contracts have been battle-tested live on the mainnet for months during the most volatile market conditions.

Website | Twitter | Discord | Github | Telegram