oPEP

oPEP has one primary purpose: Volume Incentive Rewards

As oPEP is an option token for PEP, it lets the holder purchase PEP at a 50% discount to the market price. All conversions of oPEP to PEP can only be made by the holder using USDC. This will allow the PepperDEX to acquire a robust treasury through the redemption of oPEP. The treasury also will also use 20% of the DEX transaction plus USDC fees used to redeem oPEP to acquire and stake HXRO to the Hxro Network staking contract with the 3-year max lock in order to maximize its stake weight. Rewards received from Hxro Network will then be passed through to PEP stakers as rewards.

oPEP options have a 90-day expiry from the date they are issued and provide recipients with a 50% discount from the market price when oPEP is claimed. This allows the protocol to accumulate a large HXRO reserve which will be max staked and locked to generate rewards for the protocol, and allows the PepperDEX community to purchase PEP at a discount.

The 50% discount from the market price at the time the oPEP is claimed is oPEP's strike price. This strike price is the price at which users can purchase PEP from the DAO. Call options are not like bonds, meaning the discount is not constant. Therefore, if the price of PEP changes after a user claims oPEP, the strike price does not change. After oPEP is claimed, it can be immediately redeemed through a second transaction for a 50% discount.

Claiming needs to be done within 90 days of earning rewards, but redeeming can be completed anytime after rewards have been claimed. If a user chooses to claim but not redeem oPEP, their potential profit could increase or decrease depending on the price action of PEP between claiming and redeeming.

How to get oPEP

oPEP is a reward token that adds a bold new flavor to the stale mechanics of previous liquidity mining incentive programs. oPEP emissions can be earned by trading on PepperDEX.

How to use oPEP

You can use oPEP to purchase PEP at a discount. Visit the oPEP page on the PepperDEX website to do so.

oPEP Redemption Fees

All USDC used to redeem oPEP will be distributed in accordance with the allocations listed in the DEX Fee distribution section of these docs. This fee distribution has been included again below.

DEX Transaction Fees (0.025%) & oPEP Redemption Fees

• 30% - PEP Staking Rewards

• 20% - PEP/USDC LP Protocol Owned Liquidity (POL) up to $5m & Trading Incentives

• 20% - DAO Treasury (Maintenance + Insurance)

• 20% - HXRO Buyback and Stake with the Maximum Locking Period

• 10% - Referrals

  *For fees paid by unreferred traders, this 10% will go to PEP stakers.*