🍃oTokenomics

oTokenomics is a relatively new concept in DeFi, and especially new to ve(3,3) DEXs. With oTokenomics, RIDE can ensure that pRIDE 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 RIDE's expense to loyal stakeholders of the protocol.

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

1.) Exercise the option and purchase $RIDE 1:1 at a discount with $PLSX

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

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

75% goes to bribe the top fee earning pools, which pRIDE holders receive by voting. 25% goes to the isolated Overcollateralization Treasury, which boosts yields on $PLSX APR’s as described earlier in these documents.

2.) Convert $oRIDE to max locked pRIDE 1:1

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

3.) Sell $oRIDE through the $oRIDE/$RIDE LP

The user can sell their $oRIDE on the market to avoid paying the discounted fee. Should the $oRIDE peg fall below the discount price, it would behoove the user to exercise their option instead.

Assuming $oRIDE price will hover around the discounted option rate, this also opens up an avenue to acquire discounted pRIDE, as $oRIDE could be purchased on the market at a lower price and locked to pRIDE for no fee.