Investment Representation Token
The Investment Representation Token (IRT) is the on-chain representation of a user’s proportional ownership in an OLTA index fund.
Definition
The Investment Representation Token (IRT) is a non-transferable, ERC-20-compliant token issued to users when they deposit USDC into an OLTA index fund. It reflects the user’s pro-rata share of the underlying asset basket and serves as the formal onchain representation of ownership, valuation, and interaction within the fund.
Key Characteristics
NAV-Linked Each IRT reflects the user’s proportional share of the fund’s USDC-denominated Net Asset Value (NAV), updated in real time. Smart contracts enforce minting/redemption rules tied to NAV.
Non-Transferable IRTs are bound to the investor’s wallet address and cannot be transferred. This ensures strict control, eliminates secondary market risk, and supports regulatory compliance. Tokens can be optionally extended with compliance layers (e.g. KYC flags)
Redeemable via Protocol Redemptions are executed exclusively through the OLTA protocol. The smart contract handles NAV validation, pricing execution, and capital return, ensuring secure and orderly fund exits. Each IRT is issued via a dedicated smart contract
Onchain and Auditable Supply, valuation, and user balances are recorded and visible onchain at all times, enabling full transparency and automated reporting.
Compliant-Ready The non-transferable design aligns with regulatory best practices and allows for optional integration of KYC flags or institutional gating mechanisms.
Fund-Specific Each OLTA index fund issues a unique IRT contract (e.g.,
IRT-Core20,IRT-DeFi-Low-Vol,IRT-AI). These contracts are isolated to ensure precise NAV tracking, independent governance, and risk containment.
Functional Roles
Ownership Representation IRTs represent a direct claim on the user’s share of the underlying fund.
Redemption Gateway IRTs are burned via the protocol when redeemed for USDC at the current NAV.
Performance Tracking Real-time IRT balances provide transparent portfolio valuation through the OLTA interface.
Governance Access (Optional) In certain fund structures, IRT holders may be granted voting rights on specific parameters such as asset inclusion or weighting rules.
Issuance & Redemption Logic
Issuance When a user deposits USDC, the protocol calculates the current NAV and mints the corresponding quantity of IRTs.
Redemption When a user initiates a redemption, IRTs are burned and the user receives USDC according to the latest NAV, via secure execution flows handled by the protocol.
By leveraging IRTs as non-transferable, NAV-linked tokens, OLTA delivers secure and transparent fund exposure while aligning with institutional-grade operational and compliance standards.
Future Extensions
Staking integrations (earn $OLTA rewards from holding IRTs)
Wrapping mechanisms (e.g. combine multiple IRTs into OPTA)
DeFi composability (lend, borrow, LP with IRTs)
By using IRTs as on-chain mirrors of investment positions, OLTA provides transparency, traceability, and simplicity in managing structured index exposure.
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