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 – utilised as the primary venue, providing a full-service prime brokerage platform with institutional-grade trading capabilities, custody services, financing solutions, and smart order routing for seamless multi-venue execution.
Binance VIP Institutional – leveraged as a secondary route when an asset is unavailable or illiquid on Coinbase, benefiting from its dedicated institutional program and deep liquidity services.
Kraken Institutional / Kraken Prime – tapped for redundancy or specific regional depth, offering a turnkey institutional gateway combining trading, financing, custody, and multi-venue liquidity aggregated into a single platform.
OLTA will also continue to explore additional exchanges that combine strong proof-of-reserves frameworks with dedicated institutional offerings, such as:
Bitstamp Institutional – long-standing European exchange with transparent PoR audits and regulated infrastructure.
Gemini Institutional – SOC 2 certified custody and trading platform with robust compliance standards.
OKX Institutional – advanced proof-of-reserves dashboard with public, verifiable attestations.
LMAX Digital – FCA-regulated spot exchange providing deep institutional liquidity.
Assets are withdrawn to the protocol’s custody address immediately after settlement; no long-term storage on exchanges.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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