💦SPLASH

Delve into Ociswap's liquidity incentives program.

A common issue in DeFi is liquidity mercenarism, where users aggressively switch from one liquidity mining campaign to another for short-term gains. From the standpoint of the protocol, this is essentially borrowing or temporarily acquiring liquidity, but it leaves the protocol without lasting benefits.

To address this, Ociswap uses a call-option mechanism that gradually fills the protocol treasury. These funds are reserved for future development, ensuring long-term sustainability of the platform. This model gives Ociswap a strong financial foundation for continuous growth, which encourages liquidity providers to become loyal to the Ociswap ecosystem.

SPLASH 1.5

While SPLASH 2.0 is being developed and audited, SPLASH 1.5 serves as an interim liquidity mining campaign.

SPLASH 1.5 parameters have been update as per 20th of March 2024. These updated terms and conditions will be effective from the Wave starting on the 25th of March, 2024, and thereafter.

Key Details *

• Wave Duration: 7 days, starting Monday at 0:00 UTC and ending Sunday at 23:59

• Eligibility: all liquidity providers of the highlighted liquidity pools on Ociswap that hold ≥ 500 $OCI during the entire Wave. Only liquidity in the new Ociswap Pool V2 and Ociswap Precision Pool V2 is eligible for SPLASH.

• Rewards: 100,000 $OCI per Wave (and any potential rewards via Community SPLASH)

• Distribution: pro rata

Noteworty change from SPLASH 1.0: the veteran bonus has been discontinued.

*Ociswap reserves the right to modify parameters as deemed necessary between individual Waves.

SPLASH 2.0

The SPLASH 2.0 system will only commence after the involved components have been audited by Hacken. The code has already been submitted, meaning the audit is currently pending.

As teased in our blog post, the liquidity incentive system of Ociswap was revamped and rebranded as SPLASH 2.0. This new system is designed to attract liquidity to the platform, discourage mercenary practices, establish and sustain a protocol treasury and ensure deep liquidity for $OCI. A total of 60 million $oOCI is reserved for distribution through this concept.

A schematic overview of the SPLASH 2.0 liquidity mining incentives.

SPLASH pools

When users provide liquidity and lock assets in dedicated OCI/XRD liquidity pools (also known as SPLASH pools), they obtain a non-fungible token called $SPLASH.

SPLASH NFT

SPLASH contains 'voting power', which is used to determine which liquidity pools are eligible for additional rewards in the form of liquidity incentives. The amount of voting power is calculated based on the initial amount of OCI that were locked and the chosen lockup duration. A longer lockup period symbolises increased loyalty and commitment to the platform, resulting in a higher voting power multiplier.

Lock Duration	Multiplier Bonus
30 days	TBA
60 days	TBA
90 days	TBA
180 days	TBA
360 days	TBA

After locking liquidity in one of the SPLASH pools, the position is set into an auto-lock state. Users can opt out of this state at any time by manually requesting the tokens to be unlocked. However, once users choose to unlock their underlying tokens, their voting power gradually decays to zero until all tokens are completely unlocked. This measure is implemented to ensure that protocol voters act in the best interest of the platform. Users with less remaining commitment (i.e., lower voting power due to a shorter lock duration) have a reduced impact on voting decisions.

Waves

Users can employ their voting power within gauges, which operate on a weekly cycle known as 'Waves.' During these Waves, users have the opportunity to vote by allocating their voting power to one (or more) of Ociswap's liquidity pools at their own discretion.

The outcome of these gauges determines the allocation of $oOCI liquidity incentives among the liquidity pools.

Voting

SPLASH is the key to deciding which liquidity pool gets $oOCI emissions on Ociswap. The community can use their voting power to influence this decision. This is simply done by allocating voting power to the liquidity pool(s) of their preference. The more votes a pool gets, the more $oOCI it receives.

Bribes

Bribes are like incentives offered by anyone to influence the voting process towards a specific pool. It's a useful way for external projects to encourage people to add their token to Ociswap's liquidity pools. Essentially, it's a simple way for third parties to shape their own campaign for liquidity mining.

$oOCI rewards

Based on the voting results of the previous Wave, the $oOCI reward tokens are proportionally allocated to the liquidity providers of the selected liquidity pools. 90% of these rewards can be claimed by the respective liquidity providers who have SPLASH voting power. The remaining 10% can be claimed by liquidity providers who do not participate in SPLASH.

To calculate the reward for each individual liquidity provider, the following math formula is used:

TBA

Converting $oOCI to $OCI

The $oOCI token functions as a soulbound call option that enables users to acquire OCI at a reduced price from a dedicated contract. This discount is variable and depends on the quantity of $oOCI accessible within this contract.

The$oOCI available in this contract can originate from two sources:

1. Protocol emissions (liquidity incentives allocations)

2. Third-party contributions, where external parties offer their $oOCI for sale through this contract.

To acquire the discounted $OCI, users use XRD as payment. The XRD payment is directed to either the treasury or the individual who provided their OCI for sale.