First Look at OraiDEX’s Co-Harvest
This article aims to provide a comprehensive overview of OraiDEX’s inaugural Co-Harvest, detailing its operational framework and guiding participants through the bidding process. We’ll explore the mechanism’s significance for the OraiDEX ecosystem, the opportunities it presents to bidders, and its impact on ORAIX tokenomics, especially in terms of creating deflationary pressure to enhance the sustainability of ORAIX liquidity provider rewards.
Co-Harvest on OraiDEX is a strategic innovation designed to invigorate the platform’s ecosystem. It’s an opportunity for bidders to acquire USDC, a stablecoin, at potentially discounted rates through a unique auction mechanism. This process not only offers financial incentives to participants but also plays a crucial role in shaping the ORAIX tokenomics. By utilizing ORAIX tokens in these bids, the mechanism introduces deflationary pressure, which is pivotal in making the ORAIX liquidity provider (LP) rewards more sustainable. This deflation occurs as the ORAIX tokens used in bids are either burned or repurposed, reducing overall token supply and potentially increasing the value of remaining tokens.
Co-Harvest UI
At the top of the screen, users will notice several key metrics integral to the Co-Harvest process:
- Harvest Pool: This displays the total amount of USDC accumulated in each Co-Harvest reward pool, shown both as a quantity of USDC and its equivalent dollar value in USD.
- Co-Harvest Countdown: This countdown timer indicates the remaining time until the current Co-Harvest bidding round concludes. During this period, users can place or adjust their bids. Once the timer expires, the settlement process begins.
- Total Bid: This metric shows the total amount of ORAIX currently allocated across all Co-Harvest discount levels, providing the current USD value of these ORAIX bids.
- Bidding History: Users can view the bidding history for the current round, including wallet addresses, bid amounts, and the associated discount levels.
Step-by-step Process
- View ORAIX Balance: Check your current ORAIX token balance.
- Select ORAIX Bid Amount: Decide how many ORAIX tokens you want to bid, keeping in mind that these tokens will be exchanged for USDC at the time of settlement if the bid is successful.
- Choose Co-Harvest Discount Level: Select your desired discount level for the bid, which will affect your exchange rate for USDC at settlement, allowing for the possibility of acquiring discounted USDC.
- Review Bid Value and Potential Return: Evaluate the current value of your bid and the potential return. Note that these figures are provisional and will be finalized at settlement.
- Place Bid: Once satisfied with your bid parameters, proceed to place your bid by clicking the ‘Place a Bid’ button.
Bidding Period
During this period, participants can bid at various discount tiers, with the flexibility to place multiple bids and adjust them as needed. This window remains open until the countdown timer reaches zero, after which no further bid modifications or withdrawals can occur until settlement is completed.
Settlement
The Co-Harvest settlement process is a critical phase where the actual distribution of USDC takes place based on the bids. In cases where there is a tie at the lowest discount level, the available USDC is distributed equally (on a per ORAIX basis) among all tied bidders. This ensures a fair allocation of USDC to participants, reflecting their respective bid amounts and chosen discount levels.
Get Ready to Harvest!
The introduction of Co-Harvest on OraiDEX marks a significant milestone in the evolution of the platform, offering a novel and potentially advantageous mechanism for participants in the DeFi space. This innovative auction system not only provides an opportunity for users to acquire USDC at discounted rates but also plays a vital role in enhancing the ORAIX tokenomics through deflationary measures. By strategically utilizing ORAIX tokens in bids, the Co-Harvest mechanism helps maintain the sustainability of liquidity provider rewards, thus contributing to the overall health and stability of the OraiDEX ecosystem.
As with any innovative financial mechanism in the rapidly evolving world of cryptocurrency and decentralized finance, participants are encouraged to approach Co-Harvest with a blend of enthusiasm and caution. Understanding the nuances of the bidding process, the impact of their bids on the tokenomics, and the inherent risks and rewards of such participation is key. The Co-Harvest mechanism stands as a testament to OraiDEX’s innovative approach to DeFi, offering a unique blend of opportunities for token holders and contributing to the platform’s long-term vision. It’s a step forward in the platform’s journey, promising to add a new layer of engagement and value for its community.
