oTokenomics is a relatively new concept in DeFi, and especially new to ve(3,3) DEXs. With oTokenomics, Horiza can ensure that veHRA 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 Horiza's expense to loyal stakeholders of the protocol.
$oHRA Emissions
Instead of traditional emissions in the form of $HRA that could be immediately dumped into the market, liquidity is incentivized through $oHRA, which is the the option call version of $HRA. Essentially, someone with $oHRA in their possession can do three things with it:
1.) Exercise the option and purchase $HRA 1:1 at a discount with $USDC
  • example - current $oHRA discount is 70%. Farmer A has 100 $oHRA tokens from emissions (let's say market price of $HRA is $1 for this example). He decides to exercise his option and redeem his $oHRA for $HRA. He will pay $30 in $USDC tokens, and receive 100 $HRA.
2.) Convert $oHRA to max locked veHRA 1:1
If the user decides to convert their $oHRA to veHRA, there is no fee to do so. This entitles the user to begin voting with their veHRA and earn massive real yields as a result of Horiza's efficient fee and bribe generation mechanisms.
3.) Just hold
Now, you can just hold oHRA and when it is executed or locked in veHRA you will get more tokens! The longer you hold it, the more tokens you will get. You can check how many tokens you can change your oHRA to on the Dashboard and Option page (by entering the number of oHRAs).