Eligibility Framework
Internal criteria for evaluating and approving Digital Assets within OLTA indices.
Overview
OLTA applies a strict eligibility framework to determine which tokenized TradFi assets can be included in any structured index. This ensures that only high-quality, liquid, and verifiable tokens are considered, maintaining institutional-grade standards of risk, transparency, and compliance.
The framework is reviewed periodically by the protocol’s governance and adjusted in response to market evolution and regulatory developments.
Evaluation Dimensions
1. Issuer Transparency
Public documentation of underlying asset structure
Clear custodial arrangement (regulated custodian, proof-of-reserve mechanisms)
Jurisdiction and legal enforceability of redemption rights
2. Token Design
ERC-20 or equivalent interoperable standard
Onchain auditability of collateral
Presence of transfer restrictions or whitelisting constraints
3. Oracle and Pricing Infrastructure
Reliable real-time pricing via Chainlink, RedStone, or equivalent
Minimum historical uptime and deviation monitoring
Redundancy and fallback mechanisms in case of oracle failure
4. Liquidity Profile
Availability on secondary markets (DEX or CEX)
Minimum daily trading volume thresholds
Slippage tracking and liquidity depth analysis
5. Regulatory Standing
Issuer compliance with MiCA, SEC exemptions, or local financial regulations
Token not classified as unregistered security or illegal instrument in core jurisdictions (US, EU, SG, UAE)
Proof of AML/KYC enforcement when applicable
Minimum Requirements for Inclusion
Custodial Structure
Regulated third-party custodian
Transferability
Freely transferable or with clear compliance path
Pricing
Multi proven oracle-based real-time price feed
Trading Venue
At least one verified secondary market (DEX or CEX)
Daily Liquidity Threshold
>$4M daily trading volume over a given period (e.g. > 6 months)
Issuer Transparency
Publicly accessible documentation
Ineligible Assets (Examples)
Wrapped products without full collateral transparency
Tokens with opaque or unverifiable offchain backing
Assets that cannot be redeemed or lack any legal claim
Products with excessive issuer risk concentration
Assets blacklisted by regulatory agencies or failing KYC requirements
Dynamic Review & Governance
OLTA’s governance module allows token holders to propose and vote on changes to the eligibility framework or specific asset inclusion/exclusion. The protocol may also maintain a rotating watchlist of tokenized assets under observation, subject to periodic review or emergency delisting procedures.
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