oCRST
The Future of Liquidity Incentives
oTokenomics are a revolutionary concept introduced in Crust’s DeFi ecosystem, representing a commitment to innovation and stability in decentralized finance. oTokenomics specifically addresses challenges like token devaluation and incentive misalignment for Liquidity Providers (LPs), steering towards a sustainable alignment of user and protocol interests.
Options
oCRST tokens empower LPs with several strategic choices:
Purchase CRST with a Discount
Mechanism: Exchange oCRST for CRST at a dynamic Discount Rate.
Benefits: Capitalize on CRST’s market value for potential immediate profits.
Example: A LP converts 100 oCRST to 100 CRST at a 60% discount, paying $40 to acquire CRST worth $100 and potentially making $60 profit on selling.
Revenue Distribution from oCRST Redemptions
Revenue from oCRST redemptions is strategically allocated to strengthen the Crust ecosystem. Allocation may vary depending on market conditions and ecosystem performance (for example, during a downtrend a larger percentage may be used to buy back CRST to support price rather than being distributed as USDC incentives or added to the treasury). This flexibility allows Crust to adapt and ensure sustainable growth and stability across different market environments.
The initial allocation of oCRST redemption revenue is structured as follows:
30% used to buyback CRST
70% to backing treasury (More on this later)
This strategic distribution ensures a balanced flywheel mechanism, with 70% of weekly oCRST redemptions specifically designated for veCRST voters, thereby fostering a self-reinforcing cycle of growth and participation within the ecosystem.
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