oTokens

What is an "oToken?"

oTokenomics represents a novel approach in the DeFi space. It is short for Option Token. Through oTokenomics, Harbor aims to optimize rewards for HBR holders, while discouraging short-term, profit-driven farming tactics on the platform. This innovative strategy marks a significant departure in incentivizing liquidity, redirecting benefits from profit-focused farmers to dedicated supporters of the Harbor Market protocol.

oHBR Emissions

In a departure from traditional emissions, HBR tokens, which could be quickly sold off, liquidity is now encouraged via oHBR. This token is essentially an option call for HBR. Possessors of oHBR have one choice:

• Exercise the Option for HBR at a discount with BNB: At protocol launch, oHBR will have a 50% discount. A user can exercise this option by paying 50% of the USDT value of HBR in BNB to receive 100% HBR tokens.

Example:

Julia has 100 oHBR tokens that she has earned on the lending platform by supplying BNB. 1 HBR token is $1 in this example. Julia must exercise the option in order to receive HBR tokens. Julia navigates to the Options page on the Harbor Market website. She sees a dialog box in the middle of the page that has inputs for her to input: oTokens and BNB. Julia must provide the protocol both oHBR and BNB to receive HBR tokens. Once she approves the amount of 100 oHBR and $50 in BNB, she receives 100 HBR. She is free to provide liquidity or to utilize those HBR tokens in any way she sees fit.

tl;dr Every oHBR earned can be exchanged in addition to 50% of the dollar value in BNB for HBR tokens

As the protocol mature more options will become available for oHBR. Right now the team is considering creating a second option to allow users to zap oHBR into an HBR-BNB LP (discount under discussion).

If you have any questions, please reach out to the Harbor team in our official discord: https://discord.gg/JQjh8U6NuZ