OLP Rewards

OLP rewards are derived from fees that are paid by traders on the OmniTrade Leveraged Trading interface. This includes both Leveraged Trading and Zero Slippage Swaps. These trades are transacted using the OLP multi-asset liquidity pool which is supported by investors depositing blue-chip tokens in return for a share of the pool and the fees that it generates. As well as earning fees, OLP holder will also receive Escrowed CHARM as an additional reward for supporting the protocol.

OLP rewards are calculated after the deduction of referral rewards and the network cost of keepers. Keeper costs are typically 1% of total fees. These net rewards are then converted to TLOS and distributed to OLP token holders, Charm stakers and the Treasury.

The current allocations are:

• 60% to OLP holders

• 30% to Charm stakers

• 10% to Treasury

Investment Performance

• Information on historic performance of OLP rewards can be found at https://stats.omnidex.finance

• Information on the current composition of the OLP pool can be found here

• Information on the current price and APR for OLP investment can be found here

• Information on the current price and APR for Escrowed CHARM can be found here

How to Participate in OLP Rewards

Investors can provide liquidity and receive OLP tokens through the OLP Liquidity page. This allows users to deposit blue-chip tokens, USDC,USDT,BTC, ETH or TLOS and in return mint OLP tokens. Buying and selling of OLP is discussed in more detail here.

Risks & Benefits

As trading liquidity is provided by the OLP, the OLP token price will change as a result of trading activity. When traders make a loss then an equal amount of the trade collateral is allocated to the OLP and the price of the OLP token will rise. Conversely when traders are successful then the profits for the trade will be taken from the OLP and the price of the OLP token will fall. Historic profit and loss performance for OLP can be tracked at https://stats.omnidex.finance

Example

If a trader deposits $100 of collateral to go 5x long on ETH then $500 of ETH (5 x $100) will be reserved in the OLP. If the price of ETH subsequently falls by 10% then $50 of the openining collateral will be allocated to the OLP. In effect this means that the OLP holders do not suffer the downward movement in the price of ETH and therefore profit by $50. However, if rather than falling the price of ETH rises by 10%, then the OLP holders will not benefit from this rise in the price of ETH as the $50 of profit will be allocated to the trader.