Treasury contract

Treasury

The Treasury Contract serves as a secure vault for all funds collected by the Protocol. When a user purchases bonds, the treasury receives the full value of the LP in exchange for an equivalent value of $OPEN. The newly minted O$PEN tokens are backed by the treasury's risk-free assets (RFV), which are explained in detail in the bond contract.

The total amount of assets entering the treasury through bond sales, including $USDT, $USDC, $WBTC, $ETH, $UNI, OPEN-USDT LP, and other assets, is known as the total treasury assets.

The total treasury risk-free assets represent the total risk-free value of various assets entering the treasury through bond sales. The USDT bond's value is equal to its no-risk value, while the LP bond's total value is greater than its no-risk value.

Consequently, the total treasury assets may decrease with the decline in the price of $OPEN, but the total treasury risk-free assets show a unilateral upward trend.

To ensure stability and security, OpenFi backs each newly minted $OPEN token with a treasury-risk-free asset. As the risk-free assets in the treasury increase, more $OPEN tokens will be minted.

To ensure the operation of the rebased currency, we have set a sufficiently secure threshold for the funds in the treasury. Only when the total risk-free value of the treasury exceeds this threshold, will we use the excess assets as counterpart funds for the contract.

Rebase Epoch

The protocol allocates tokens directly to the staking contract without reclaiming $OPEN, resulting in an increased $sOPEN to $OPEN ratio that will be rebalanced.

Staking rewards are issued every 8 hours. The protocol distributes profits equitably to all stakers through $OPEN, ensuring that everyone receives the same percentage of profits.

The protocol automatically compounds interest, meaning that stakers do not need to harvest rewards manually; they simply need to maintain their stake.