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
Last updated