Vaults
A community of like-minded investors not only gets early access to deeply-vetted, insurance-backed, and allocation-guaranteed investment deals but also earn auto-compounded $OPN staking yields without extra effort, creating an exponential passive income. Staking rewards are automatically harvested once a day back into the staking vault, creating a compounded yield. For example, the auto-compound strategy maximizes the yield via automatically transforming 100% Annual Percentage Yield (APY) into 171% APY without user input.
“Compound interest is the eighth wonder of the world. He who understands it, earns it; he who doesn't, pays it” - Albert Einstein
$OPN is used to incentive users to provide liquidity in markets to earn trading fees.
OpenPad plans to maintain the sustainability of liquidity through protocol-owned liquidity models. Bonding is selling $OPN tokens at a discount to buyers which forms the treasury and then this treasury can be deployed as liquidity directly on markets. (e.g., decentralized exchanges)
OpenPad offers fractional insurance funds for de-risking token sales and early-stage Web3 project investments.
- Insurance capital formation: FIF is a self-sustainable treasury reserve allocated to protect qualifying investors from extreme decentralized finance conditions up to 100% of the initial investment. FIF is formed as a portion of the treasury and a certain rate of fees.
- Collateral-free: FIF is a no-deposit insurance model, which doesn't require investors to deposit any collateral upfront. Hence, it's 100% risk-free insurance funds to be allocated to qualified investors.
- Scope: FIF covers only extreme conditions such as rug pulls, market loss due to smart contract bugs, and similar project-driven faults. The scope of the insurance fund might be voted with the community in the future.
- Qualifications: To qualify for FIF, investors must
- (1) invested in the deal
- (2) register for the insurance fund in the defined time slots
- (3) pass the initial deposit threshold
- (4) have a $OPN staked in the defined time slots
Note: The initial deposit threshold and the minimum amount of $OPN stake will be determined per deal basis.
- Currencies: BNB, BUSD, or $OPN might be used as a type of refund currency.
- Timeline: When the utilization of FIF is confirmed, then the registration and claiming periods will be timelined and announced.
- Refunding: Qualified investors are guaranteed a partial or full refund based on the number of insurance participants and the fund size. Given the pool of insurance-qualified investors, the to-be-determined portion of the insurance fund will be shared proportionally across investors.
- Insurance level: As FIF is a no-collateral insurance-guaranteed fund, the amount qualified investors will receive will be changing deal-to-deal and there will be no promise of a guaranteed amount or percentage or full refunding.
- The utilization portion: The utilization rate of the full FIF will be determined on a deal-to-deal basis and might be voted with the community.
- Vesting: If insurance tokens will be distributed via $OPN, there will be a vesting period to avoid instant sell-side pressure and the terms will be scheduled when the utilization of FIF is confirmed.
Let's suppose that there are 100 insurance-qualified investors with varying initial investment amounts. Let
be the initial amount of investment of investor 1 among 100 qualified ones,
be the weight of investor 1 (i.e.,
) let
be the total insurance funds. Then, let
be the portion of
allocated for a particular refunding event. Then, investor 1 will receive a refund
.
Diving deeper, OpenPad can determine to calculate
as a weighted average of insurance fool share and $OPN staked amount. Mathematically speaking, let
be the $OPN staked amount of investor 1, then
might be calculated as
where
and
Last modified 5mo ago