What is OLIVE?
Everything you want to know about OLIVE Tokens and its distribution
OliveDAO’s native protocol token, OLIVE, serves several purposes:
  • Its primary use case is to be vote-locked to obtain veOLIVE which can be staked into an Asset Jar to direct deposited assets as liquidity across exchanges – this is why OLIVE can be thought of as tokenized liquidity
  • It is the network’s incentivization/reward token for participants, both LPs and LDs
  • Protocol risk mitigation, as it acts as a backstop for potential losses incurred during liquidity deployment, eg if an LP attempts to withdraw their assets and cannot be made whole
  • Governance via veOLIVE

Tokenized Liquidity

OLIVE can be thought of as a homogeneous form of tokenized liquidity or simply put, it’s representative of the ability to direct any of the deposited LP assets in the form of liquidity.
When an LD vote-locks OLIVE, the LD is given proportional veOLIVE which can then be allocated to any number of Asset Jars within the system.
veOLIVE’s voting power is determined by the amount of veOLIVE in a given Asset Jar.
If there is a large supply of assets in an Asset Jar but a small amount of veOLIVE directing those assets, those veOLIVE have greater liquidity directing power. However, in this described imbalanced state, the APR offered for veOLIVE staked to that Asset Jars will adjust variably to attract LDs to stake more veOLIVE. In this sense, the higher APR is meant to compensate for the slightly higher risk taken due to fewer LDs collateralizing the Asset Jars — the reverse state is also true: over collateralization will lead to a decreased APR. More can be found in the Jars Balance & Rewards Logic section.
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