Staking & Reward

Staking & Reward distribution logic explained

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

  • $OLTA can be staked in the vault for an open‑ended duration

  • Rewards accrue over time and are claimable after the lock duration (if applicable)

  • Early withdrawal may result in partial penalty or forfeited rewards (under consideration)

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 released upon withdrawal

  • Rewards are 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 OLTA pairs (e.g., OLTA/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

circle-info

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

Last updated