Tokenomics Update: New Epoch Rewards

OpenLeverage
3 min readNov 2, 2023

In the constantly evolving DeFi space, projects must display dynamism, adaptability, and a deep understanding of user needs. OpenLeverage has been at the forefront of these principles. With the new epoch dawning this November, we are announcing a significant tokenomics update that stands as a testament to the commitment to community and innovation.

Balancing the Reward Scales

Based on real-time data from the last epoch, OpenLeverage is recalibrating its lending and borrowing rewards. Previously, borrowers had a larger piece of the reward pie. Now, a third of borrowing rewards will be redirected towards lenders to balance the liquidity. This not only ensures fairness but also underscores the platform's responsiveness to evolving user behaviors and the market's dynamics.

Hold xOLE to be Eligible For Rewards

To fortify the platform's stability and further nurture user loyalty, we are unveiling an advanced reward eligibility framework. To be eligible for the epoch rewards, you must have xOLE holdings equivalent to a minimum of 8% of your total lending and borrowed assets.

This change comes with an hourly reward distribution system, allowing you to see a steady increase in rewards, contrasting the earlier dilution experienced over the epoch.

A specially designed dashboard will also be provided with insights into your reward eligibility, a feature that's set to empower you to make informed decisions.

Given the inherent volatility in the crypto market, it is recommended that you maintain an additional buffer of xOLE above the minimum requirement. This proactive approach ensures sustained eligibility amidst market fluctuations in their lending, borrowing assets, and OLE's value. Preparing for these market dynamics allows you to optimize your rewards without constantly adjusting their holdings.

xOLE Boost for lending, trading, and borrowing will still be applied.

Reward Vesting: A 90-Day Journey with Early Exit

The rewards, once earned, embark on a 90-day linear vesting journey. They aren't immediately available; You must initiate the vesting by claiming them. A 21-day window is provided for this claim, post which unclaimed rewards will be forfeited. Once vesting begins, rewards unlock gradually, ensuring users have a consistent inflow over the three months.

For users in need of immediate liquidity, OpenLeverage provides an early exit route from the vesting schedule. However, this convenience comes at a price: early exit penalties ranging from 15% to 90%. The earlier the exit, the heftier the penalty.

But there's a silver lining for those seeking an alternative. Users can pair their rewards with USDC and lock them into xOLE for at least 4 weeks, enabling an early exit without the steep penalties, thereby promoting liquidity and continued platform engagement.

Updated Timeline

  • Epoch 25’s reward blueprint, initiating on 2nd Nov @10am UTC, embraces the new structure.
  • 90-day vesting will apply to the reward of epoch 24, adopting the early exit paradigm. Vesting claims commerce about 2 weeks later, coinciding with the debut of our OLE v2 Token and the sunset of BUSD. The precise timeline is to be confirmed in a future announcement.

Closing Thoughts

OpenLeverage's latest tokenomics revisions echo its dedication to adaptability, fairness, and user engagement. By blending long-term incentives with flexible options, we are crafting a platform poised for growth and sustainability in a competitive DeFi arena. For new and seasoned users, these changes promise a more engaging, rewarding, and transparent experience, further solidifying OpenLeverage's position in the DeFi space.

This is just the beginning of the changes. Stay with us, for the best is yet to come.

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