Liquidity Mining (Calls as Incentives)
Dopex liquidity mining has two primary features:
SSOV incentives are strike-based, meaning that within a given SSOV, depositors will only share incentives with other depositors in their chosen strike. This ensures fair distribution of rewards for all strike prices, providing deep liquidity across all strikes for option purchasers.
SSOV incentives are split 60:40 between standard tokens (e.g. $DPX) and ITM calls (e.g. 10% ITM $DPX weekly calls) at an SSOV level which is then distributed based on strike price as follows:
Calls as incentives provides Dopex flexibility on how rewards are distributed by changing reward parameters such as:
- Total incentives provided
- % ITM of call rewards
- % distribution of tokens and calls per strike price
$DPX and $ARB are deposited every epoch by the Dopex Treasury into the $DPX and $ARB SSOVs in the ITM strike price and repurchased. The repurchased calls are then distributed linearly to liquidity providers depending on the SSOV and strike price they are deposited in.
Liquidity providers can then make one of two choices:
OLPs will be bootstrapped every epoch to ensure there is sufficient liquidity for all reward recipients to exit their positions early if they wish to do so.