Trading, Lending, and Borrowing Rewards
To incentivize market liquidity and trading volume on OpenLeverage, we will distribute $OLE rewards to traders and lenders based on participation. Any active address can earn $OLE rewards which will be accumulated to your rewards balance when participating in specific trading and lending pools.
Members who open positions during the epoch will be awarded the corresponding OLE rewards to cover their OpenLeverage fee. To encourage real trades, the trading reward covering the OpenLeverage fee is split into an opening reward and a closing reward. Please note that closing a position with “Close with Repayment” will not be rewarded.
Traders can participate by margin trading any valid pair. Trading rewards are distributed to traders who long or short a rewarded pair.
Token pairs that have:
- 0% fees will be awarded 0.05% trading rewards of the swapped amount.
- 0.05% fees will be awarded 0.075% trading rewards of the swapped amount.
- 0.22% fees will be awarded 0.35% trading rewards of the swapped amount.
- 0.11% fees will be awarded 0.2% trading rewards of the swapped amount (Arbitrum only).
For example, if a user trades with ETH-USDC (0% fees), they will earn 0.05% of the trading rewards of the swapped amount when they open the position. When they close their position, they will earn another 0.05% trading rewards of the swapped amount.
Please note that the swapped amount is the amount changed on the DEX during margin trading.
Epochs last 21 days and are divided into 7 trading phases with their own dilution. The trading rewards dilution mechanism will be every 3 days. At every phase, the dilution ratio will be 1 and as more users trade, the dilution mechanism would be activated. Traders will keep rewards earned per trading phase. The sum of the 7 trading phases will be rewarded to traders. diluted rewards = undiluted reward * (set rewards pool amount / earned total rewards)
For example: Alice executes a trade and earns 1,000 OLE in phase 1 with no dilution. She does the same trade and earns 1,000 OLE, but at the end of the phase, the dilution was 0.5, earning her 500 OLE. She executes the same trade and earns 1,000 OLE in phase 3 with no dilution. In the end, Alice earned 2,500 OLE: 1,000 + 500 + 1,000.
Staking OLE-BUSD LP will qualify users for accelerated trading rewards. The greater the LP amount and the longer the pledge time, the more accelerated rewards can be earned. The maximum acceleration ratio is 20% of the original reward. The calculations are shown below:
In each epoch, xOLE-holder trading accelerated OLE will have a boost cap that will no longer accelerate when the maximum acceleration value is reached. Your maximum boost OLE is calculated according to the following formula:
Lenders can participate by depositing assets to valid lending pools. Lending rewards are distributed to lenders who deposit assets in the lending pool based on a combination of lending amount and time. The following formula is used to calculate lending rewards:
Staking OLE-BUSD LP will qualify for accelerated deposit bonuses. With a higher LP amount staked and longer stake time, more boosted lending rewards can be earned. The calculations are shown below:
Borrowers can participate by borrowing assets from a valid borrowing market. Borrowing rewards are distributed to borrowers who borrow assets in the market based on a combination of borrowing amount and time.
The following formula is used to calculate borrowing rewards:
Staking OLE-BUSD LP will qualify for accelerated borrowing bonuses. With a higher LP amount staked and longer stake time, more boosted borrowing rewards can be earned. The calculations are shown below: