oAsset Lockup Incentive Plan(Draft)

Hello, Orbit Chain community. This is Ozys, developer of Orbit Bridge service.

Following the unexpected Orbit Bridge exploit on January 1, we have been working tirelessly to restore service and the Orbit ecosystem. Once again, we would like to extend our deepest gratitude to the community, including Orbit Bridge users, for their perseverance.

Today, we would like to share the details of the incentive plan and structure for ⒸLong-Term Support Asset (participants and partners) from the “Asset Recovery and Ecosystem Normalization Plan (Draft)” announced on February 14th.

1. Definition of Incentives and Recovery Resources

The resources for the oAsset lock-up incentive and long-term recovery plan is equivalent to the entire Development allocation which will be distributed according to the smart contract in the token distribution of the protocol to be developed by Ozys over the next two years. As the majority of the Dev allocation is designated as incentive and recovery resources, Ozys will actively utilize the direct upside generated by the soon-to-be-developed protocol to accelerate ecosystem normalization.

2. Structure of Incentives and Recovery Plan

As defined above, incentives and recovery resources will be utilized under three categories, (1) incentives for oAsset lock-up(Ⓒ), (2) the establishment of a fund for the recovery of original assets(Ⓐ), and (3) oAsset acquisition(Ⓑ) and development/operating costs.

As forth, This structure directly connects Ozys’ future Dev allocations to the ⒶRecovery asset, ⒷPriority recovery asset, and Ⓒ Long-term support Assets. The details of the structure are as follows.

(1) Long-Term Lockup Incentives

Distribution ratio: A direct distribution of 30% of the total Dev allocation will be made to locked-up users

Users can earn rAssets by locking up assets and receive accumulated incentives every three months based on the share of their rAsset holdings.

(2) Original Asset Recovery Fund

Distribution Ratio: 40% will be used as a fund to recover the original Orbit Bridge assets.

The fund will be transparently run. Resources acquired through Defi including LP deposits, lending etc will be used to raise funds for the purchase of original assets.

(3) oAsset Acquisition / Development⋅Operating Costs

Distribution Ration: The remaining 30% will be used to finance direct acquisitions of oAssets, and development ⋅ operating costs.

The distribution amount will be used for resolving priority recovery assets through direct acquisition of oAssets, and a minimal amount will be used to fund Ozys’ operation for long-term recovery.

3. Introducing oAsset Lock-up Incentive Plan

(1) Explaining Lock-up Mechanism

• Lock-up Assets : oUSDT, KDAI, oUSDC, oWBTC, oETH
• Lock-up Period : 2 years
• rAsset Minting : Users who lock up oAssets mint rAssets at a 1:1 basis. The minted rAssets are liquid and can allow users to collect their incentives at set intervals.

(2) Process for receiving incentives

• Incentive Treasury: Incentives are distributed every three months based on snapshots taken at a specific time. Reward standards are determined by the amount of rAssets held at the time of the snapshot.
• 1:1 Exchange: Users can exchange rAssets for oAssets on a 1:1 basis at the end of the lockup period.

(3) Expected Effects

• Maintain liquidity: The lockup mechanism maintains asset liquidity within the ecosystem.
• Enhance ecosystem stability: Long-term asset lockup increases ecosystem stability and the likelihood of recovery.
• rAsset holders : Locking up their oAssets and simultaneously minting rAssets allows users to gain upside through DeFi like the existing assets and receive lock-up incentives simultaneously.

When the detailed development schedule for the smart contract-based protocol and the oAsset Lockup contract are complete, we will share them with the community. We ask for your interest in the oAsset lock-up process.

Last but not least, Ozys pledges to make every effort to ensure the ultimate normalization of the Orbit ecosystem, including asset recovery. Coupled with the current efforts in acquiring oAssets, Ozys will utilize the developer allocations including participation in the Silicon ecosystem towards the purpose of normalizing the Orbit ecosystem.

Thank you.