Option Call as Incentives ($oIVX)
IVX will be adopting option call emissions as an incentive mechanism for liquidity providers, traders, and Berachain validators as a design to align the interests of all parties within the protocol. This approach aims to facilitate and bootstrap and initial growth of the IVX protocol while offering sustainable rewards for all IVX ecosystem participants.
The work will be in collaboration with Bond Protocol
A small recap on Options Liquidity Mining (OLM)
OLM is an innovative mechanism first introduced in 2020 by builder @AndreCronjeTech, where unlike traditional incentive models that distribute ERC-20 tokens directly, OLMs incentives participants through option calls.
What does this mean?
As an IVX participant, you will receive ERC-20 call options, which can be redeemed for the actual ERC-20 token at a fixed price, discounted from the spot price. For example, if the token’s market price is $1.00 and you receive an option call token at $0.40, you have the ability to exercise this option by paying $0.40. This allows to acquire 1 token worth of $1.00 and therefore netting an instant profit of $0.60.EditProvide a caption (optional)
Why $oIVX ?
This approach offers several strategic long-term advantages for both IVX users and contributors. It allows IVX to continue incentivizing protocol usage and liquidity provision while ensuring the token emitted resembles a minimal floor value, strengthening IVX's protocol owned liquidity.
The IVX treasury can manage token inflation through $oIVX emissions without exceeding the limit of the vested duration and with that ensuring lower inflation in times of reduced need, and increasing inflation in time of need, without surpassing the maximum inflation permitted.
Funds collected will be used to support protocol expansion, deepen liquidity, and increase user incentives:
Reutilization to deepen trading liquidity through IVLP, the native AMM liquidity provision for Diem
Seed future AMMs and vaults introduced by IVX
Future buybacks of the$IVX token or/and acquisition of new licensed products
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