💥oTokenomics

Introduction

oTokenomics is a relatively new concept in DeFi, and especially new to ve(3,3) DEXs. With oTokenomics, Blueprint can ensure that veBLUE holders are being rewarded with maximum incentives, while at the same time discouraging mercenary farm and dump strategies on the DEX.

oTokenomics is a fundamental shift in the way that liquidity is incentivized, and shifts value from farmers looking to extract profits at Blueprint's expense to loyal stakeholders of the protocol.

$oBLUE Emissions

Instead of traditional emissions in the form of $BLUE that could be immediately dumped into the market, liquidity is incentivized through $oBLUE, which is the the option call version of $BLUE. Essentially, someone with $oBLUE in their possession can do three things with it:

1.) Hold $oBLUE for autocompounding rewards

Thanks to our revolutionary v2 oTokenomics, users don't have to do anything with their bought or earned $oBLUE. The vault will use the underlying veBLUE to vote, claim rewards, market buy more $BLUE, lock into veBLUE, and increase the value of $oBLUE by the same margin.

This is especially valuable in the high-gas environment of Ethereum. LPs can simply let their liquidity rewards accrue, confident that their $oBLUE rewards are themselves farming more value for them.

This autocompounding rewards mechanism is explained in detail in the next section.

2.) Exercise the option and purchase $BLUE 1:1 at a discount with $CASH

• example - current $oBLUE discount is 70%. Farmer A has 100 $oBLUE tokens from emissions (let's say market price of $BLUE is $1 for this example). He decides to exercise his option and redeem his $oBLUE for $BLUE. He will pay $30 in $USDC tokens, and receive 100 $BLUE.

When exercising an $oBLUE option, the “discount” paid upfront by a user is split 75/25.

75% goes to bribe the top fee earning pools, which veBLUE holders receive by voting. 25% goes to the treasury.

3.) Convert $oBLUE to max locked veBLUE 1:1

If the user decides to convert their $oBLUE to veBLUE, there is no fee to do so. This entitles the user to begin voting with their veBLUE and earn massive real yields as a result of Blueprint's efficient fee and bribe generation mechanisms.