Staking & Reward Distribution Logic

How $OLTA rewards are earned and distributed through staking and liquidity alignment.

OLTA includes a native staking mechanism that allows token holders to lock their $OLTA tokens and earn rewards based on protocol activity. This system is designed to reinforce long-term participation and align incentives between users, liquidity providers, and the protocol.

Core Staking Mechanics

  • Users stake $OLTA into a smart contract vault for a selected period

  • Rewards accrue over time and are claimable after the lock duration

  • Early withdrawal may result in partial penalty or forfeited rewards (if applicable)

Reward Sources

Staking rewards are funded through protocol-level revenue streams, including:

  • Management fees collected from index funds

  • Spread-based income from mint/redeem operations

  • Optional performance-based incentives

  • Buybacks redirected to stakers (if approved by governance)

Distribution Schedule

  • Rewards are distributed per epoch (e.g., weekly or monthly)

  • Allocation is proportional to the amount and duration staked

  • Boosting mechanisms may apply for longer-term staking commitments

Future Liquidity Farming Extension

In future iterations, OLTA may introduce a liquidity farming module to incentivize decentralized secondary markets:

  • Users providing liquidity for IRT pairs (e.g., IRT/USDC) may earn $OLTA incentives

  • Allocation will depend on pool activity, trading volume, and TVL

  • This system will complement staking and support healthy exit liquidity across supported venues

All reward mechanisms are enforced by smart contracts and subject to community governance. Liquidity incentives will be announced prior to activation.

Last updated