OY Token

At OmniYield, our mission is to build a decentralized finance platform that is community-driven and designed for long-term success. The OY token is central to this vision, with tokenomics crafted to provide long-term benefits, drive growth, and place governance firmly in the hands of our users.

Core Token Utility

The $OY token serves several key functions, primarily through its locked form (veOY):

1. Protocol Fee Sharing: veOY holders who vote for $OY emissions collect 50% of the fees from the vaults they vote for. This means that voters collectively receive 50% of all fees generated on OmniYield.

2. Incentivizing Deposits: $OY tokens are distributed as additional rewards to users who deposit assets into OmniYield vaults. This boosts their overall yield on top of the premium real yield already generated by their deposited assets and serves as the primary method for distributing $OY to the community.

3. Governance Rights: OmniYield grants veOY holders governance rights over the platform. This empowers the community to make critical decisions, including but not limited to:

   • Directing $OY emissions: Voting on how $OY rewards are allocated to various vaults (gauge weight votes).

   • Influencing protocol development: Proposing and making decisions on future protocol upgrades, new features, new chain deployments, and strategic partnerships.

   • Managing the DAO Treasury: Participating in decisions regarding the DAO treasury and strategic funds.

   • Steering overall strategy: Having a say in the long-term direction of OmniYield.

veOY stands for vote-escrowed OY, representing OY tokens locked for voting in the OmniYield DAO. The terms “locked OY” and “vote-escrowed OY” are used interchangeably in the OmniYield ecosystem.

Earning $OY

OmniYield's tokenomics reward active ecosystem participants through multiple avenues:

1) Earn via the SPROUT Point Program - Limited Time

To reward our foundational community, OmniYield will launch a Sprout Point Program.

While there is no direct $OY token distribution during this program (as there will be later in the Long-Term Incentives Program), user balances and contributions throughout the entire period will be recorded.

After the program concludes, participants will receive an airdrop of $OY tokens proportional to their accumulated SPROUT Points.

Why join early? Participating in the Sprout Point Program is designed to be highly rewarding for early participants seeking to acquire $OY tokens compared to the subsequent Long-Term Incentives phase.

2) Deposit in OmniYield Vaults - Long-Term Incentives Program

Once the OY token is listed, the program will conclude, and OmniYield will roll out its Long-Term Incentives program. Users who deposit into OmniYield vaults will earn $OY tokens as an additional layer of reward - on top of the yield their deposit assets generate.

• At the start of each epoch, veOY holders vote to decide how $OY emissions are allocated across vaults, after which a snapshot of all votes is taken.

• Based on the result, the $OY incentive rates for each vault are adjusted for the upcoming epoch. Vaults that garner more votes receive a proportionally larger share of the total $OY emissions.

• Within each vault, the allocated $OY tokens are distributed to depositors proportional to the size of their stake in the vault.

• These $OY rewards are dripped continuously to depositors (on a per-block basis) and held by the smart contract until a user withdraws from the vault, which triggers the contract to deliver the OY to their address.

These $OY rewards are consistent, bonus rewards, stacked on top of the vault’s native real yield.

3) Vote using veOY - Protocol Fee Sharing

It’s simple: Hold veOY, vote, and get paid.

Using veOY to vote for OY emission (via the OmniYield Voting Gauge) entitles you to earn OY rewards from our revenue sharing model:

• veOY voters earn 50% of the fees generated by the vault(s) they vote for. These fees are used to buy back $OY on the open market. The purchased $OY is then distributed pro rata to the voters of the corresponding vault(s), based on their voting weight.

• In total, voters receive 50% of all fees generated across the OmniYield platform, ensuring that committed veOY holders benefit directly from protocol success.

veOY-based voting ties protocol governance directly to economic incentives. Users who vote not only influence emissions but also receive rewards tied to actual platform usage. This strategic reward structure aims to align user incentives with OmniYield’s success and reward long-term commitment.

$OY fosters a thriving, community-centered ecosystem. By aligning incentives, promoting decentralization, and empowering active participants, OmniYield ensures that $OY holders are at the forefront of the protocol’s success.