Asset Acquisition & Execution
How OLTA sources index constituents while balancing liquidity, cost, and counter‑party risk.
CEX‑First Policy
OLTA prioritises deep, regulated centralised exchanges (CEXs) for trade execution:
Coinbase Prime is the primary venue for all eligible assets.
Binance as a secondary route when an asset is unavailable or illiquid on Coinbase.
Kraken / Bitstamp (tier‑one) for additional venues for redundancy or region‑specific depth.
Assets are withdrawn to the protocol’s custody address immediately after settlement; no long‑term storage on exchanges.
DEX Fallback
If an asset is not listed or liquidity is insufficient on the tier‑one CEX basket, OLTA falls back to leading DEXs (Uniswap v3, Balancer). Trades are split via TWAP to minimise price impact. Slippage caps and oracle cross‑checks are enforced on‑chain. It's a rare case that can happen in a small cap & high volatility specified index.
Venue Selection Criteria
Proof‑of‑reserve or publicly attested transparency reports.
Robust API and settlement SLAs.
Regulatory standing and licensing in key jurisdictions.
Historical uptime and incident history.
Execution Workflow
Order Generation is triggered by index mint, redeem, or rebalance.
Venue Routing so the best‑venue algorithm selects the deepest tier‑one CEX and falls back to DEX if needed.
Trade Settlement & Withdrawal implies assets to be moved to protocol smart contracts and a receipt logged on‑chain.
NAV Update considering internal oracle‑synchronised pricing feeds NAV contract.
Risk Mitigation
Position limits per venue to avoid over‑exposure.
Real‑time trade monitoring; alerts on abnormal spreads.
Governance can disable a venue instantly if risk signals fire.
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