💡oSHEKEL Token

oSHEKEL is gSHEKEL'S reward token.

With oSHEKEL, ShekelSwap can ensure that SHEKEL holders are being rewarded with maximum incentives, while at the same time discouraging mercenary farm and dump strategies on the DEX.

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

$oSHEKEL Emissions

Instead of traditional emissions in the form of $SHEKEL that could be immediately dumped into the market, gSHEKEL staking is incentivized through $oSHEKEL - which is the option call version of $SHEKEL. Emissions Thresholds

Emissions are based on the total supply of $SHEKEL and it decreases once each threshold is complete:

  • First 14 epochs: 1.125% of $SHEKEL total supply per epoch - 6 hours;

  • Until 300,000,000 Total Supply: 1% per epoch;

  • Until 400,000,000 Total Supply: 0.8% per epoch;

  • Until 500,000,000 Total Supply: 0.6% per epoch;

  • After 500,000,000 Total Supply: 0.2% per epoch.

Essentially, someone with $oSHEKEL in their possession can:

Exercise the option and purchase $SHEKEL 1:1 at a discount with $WETH

  • example - current $oSHEKEL discount is 60%. Farmer A has 100 $oSHEKEL tokens from emissions (let's say market price of $SHEKEL is $1 for this example). He decides to exercise his option and redeem his $oSHEKEL for $SHEKEL. He will pay $40 in $WETH tokens, and receive 100 $SHEKEL.

When exercising an $oSHEKEL option, the discount paid upfront by a user is split 50/25/25.

  • 50% goes to the treasury;

  • 25% goes to buyback & burns of $SHEKEL;

  • 25% goes to single staking vaults of $SHEKEL.

This split can be modified to allow for further revenue sharing in the future.

The other rates of redemption of oSHEKEL to SHEKEL are directly tied to the duration selected by the user, with the tokens, not converted for the user, being burned at a rate of 100%.

  • The minimum vesting period, 15 days, translates to a ratio of 1:0.5, meaning that in 15 days you get 50% of the oSHEKEL you vested into SHEKEL, during which it cannot be canceled;

  • The maximum vesting period amounts to 60 days and provides full redemption (1:1) of the tokens into SHEKEL, during which it cannot be canceled.

Unlocking oSHEKEL will never give you extra rewards, it just converts to SHEKEL at the rate of the vesting period selected.

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