In this short article we’re going to explore some of the questions that you have been asking on $OCX distribution for $OCC stakers and liquidity miners (LMs), having recently reached $100m total value locked for OCC.
Before we begin, let’s do a quick TL;DR:
- A total of 20m OCX is to be distributed to OCC holders, OCC-ADA holders, and OCC LMs,
- Current OCC staking APY for OCX is ~16% additional to normal APY,
- Current LM (Liquidity token staking) APY for OCX is ~48% higher than normal APY,
- This scales proportionally to the growth of Occam ADA stake pools.
There are 30,000,000 $OCX tokens, or 30% of the total supply, to be assigned as rewards to Occam ecosystem contributors. This includes OCC stakers, OCC liquidity miners who stake liquidity tokens (LTs), OCC-ADA holders, and ADA delegators to our stake pools. You can find more information about who is eligible for OCX distributions here.
10,000,000 of these will be allocated to ADA delegators to our pools, the emission rate and pool status can be found on our OCX dashboard here. The remaining 20,000,000 will be distributed to those who:
- Stake OCC tokens (from 14th April 2021 — staking initiation date),
- Stake liquidity tokens produced by the OCC-ETH pool (from 28th May 2021 — pool initiation date),
- Hold OCC-ADA, the OCC Cardano native token (from 17th June 2021 — launch of ETH-ADA bridge),
The OCX accumulation period lasts until the 9th of September 2022. Distribution starts either shortly after 9th of September 2021 or shortly after OccamX launch, depending on which is earlier.
Rewards are allocated with the speed of ~19 OCX/minute for ADA delegators and with speed of ~27 OCX/minute for OCC contributors and LT stakers.
Staking OCC and holding OCC-ADA have the same weight, while liquidity mining has x3 weight for OCX distribution. The calculation for all contributions are done in a time-volume weighted manner, in other words, staking either 10,000 OCC for three days or 30,000 OCC for one day would result in the same reward.
As of the time of writing, there is ~$30m total value locked (TVL) for OCC staking, ~$1.6m TVL as liquidity in the OCC Uniswap liquidity pool, ~$0.2m TVL as OCC-ADA and ~$70m TVL from delegated ADA.
That means, if you staked liquidity tokens for a total of $50,000 at this moment in time, then you are receiving roughly ~0.13 OCX/min, or around 5.5k OCX per month. Conversely, if you staked OCC for a total of $50,000 or hold OCC-ADA worth $50,000, then you would receive roughly 1.8k OCX per month at the time of writing.
These figures are currently based on the amount of ADA delegated to our Cardano stake pool, around 40m ADA at the time of writing. So from this information, we can conclude that:
- Additional OCC staking APY derived from OCX rewards on top of current APY is ~16%
- Additional LT staking APY derived from OCX rewards on top of current APY is ~48%
This will scale proportionally with the growth of Occam delegation pool. So with 120,000,000 ADA delegated, given same amount of stake and liquidity for OCC, APY will be:
- Staking APY ~48%,
- Liquidity token staking APY ~144%
The OCX token will provide holders with trading discounts for OccamX, and also a part of the exchange fees will be targeted to buy back OCX from the market and burn it.