# Table of Contents - [Introduction | Optim Finance](#introduction-optim-finance) - [Roadmap | Optim Finance](#roadmap-optim-finance) - [Overview | Optim Finance](#overview-optim-finance) - [Flow of Funds | Optim Finance](#flow-of-funds-optim-finance) - [Passive yield with sOADA | Optim Finance](#passive-yield-with-soada-optim-finance) - [Epoch Stake Auction | Optim Finance](#epoch-stake-auction-optim-finance) - [OADA 🟣 and sOADA 🟢 | Optim Finance](#oada-and-soada-optim-finance) - [User Guides | Optim Finance](#user-guides-optim-finance) - [Stake Auction AMO | Optim Finance](#stake-auction-amo-optim-finance) - [Humanitarian Partnership | Optim Finance](#humanitarian-partnership-optim-finance) - [Staking AMO | Optim Finance](#staking-amo-optim-finance) - [UNHCR Donation Module | Optim Finance](#unhcr-donation-module-optim-finance) - [Junior Tranche Loss Absorption | Optim Finance](#junior-tranche-loss-absorption-optim-finance) - [AMOs | Optim Finance](#amos-optim-finance) - [Risk Framework | Optim Finance](#risk-framework-optim-finance) - [Governance | Optim Finance](#governance-optim-finance) - [Transaction Chaining | Optim Finance](#transaction-chaining-optim-finance) - [Introduction | Optim Finance](#introduction-optim-finance) --- # Introduction | Optim Finance Optim Finance is a DeFi protocol on the Cardano blockchain. We offer a decentralized suite of products, via on-chain smart contracts, that **simplify and facilitate yield generation on digital assets**. Leveraging the composability of DeFi protocols as well as the unique architecture of the Cardano blockchain, Optim Finance creates and enables broad access to yield products such as [OADA](https://optim-finance.gitbook.io/optim-finance/oada/overview) and [Liquidity Bonds](https://app.gitbook.com/o/Skx1ZcpQS1gY76FGbptk/s/6BTbmCnORqGhhdMDWeQO/~/changes/JwIpvrsXeMCBZ5Qxa1VM/liquidity-bonds) . We are also working on an 'L2' solution for Cardano to enable more advanced, faster, and user-friendly applications on Cardano that wouldn't be able to run directly on the L1. This critical infrastructure is being built first to enable new Optim protocols, but will later be extended for other builders to leverage. [](https://optim-finance.gitbook.io/optim-finance/#products) Products -------------------------------------------------------------------------- Optim's first product, [**Liquidity Bonds**](https://optim-finance.gitbook.io/optim-finance/liquidity-bonds/overview) , is a simple primitive unique to Cardano DeFi that leverages Cardano’s well-evolved and distinctive staking system. Liquidity Bonds allow anyone to borrow or ‘rent’ **ADA staking rights** and associated staking rewards for a fixed period of time. They can be leveraged for novel use cases and broken down as such: [_SPO Bonds_](https://optim-finance.gitbook.io/optim-finance/liquidity-bonds/use-cases/spo-bonds) and [_ISO Bonds_](https://optim-finance.gitbook.io/optim-finance/liquidity-bonds/use-cases/ispo-bonds) _._ Optim's second and core product, [**OADA**](https://optim-finance.gitbook.io/optim-finance/oada/overview) , is an advanced ADA derivative system consisting of two tokens - OADA & sOADA. sOADA is a passive ADA yield product that allows users to mint and stake OADA with ADA and have on-chain yield aggregation via smart contracts earn ADA yield. OADA is the yield stripped version of the token that enables more efficient trading, enhanced governance, and other yield opportunities outside of Optim's staking system. [](https://optim-finance.gitbook.io/optim-finance/#social-media-channels) **Social Media Channels** -------------------------------------------------------------------------------------------------------- Discord: [https://discord.gg/YjzZX2wgUT](https://discord.gg/YjzZX2wgUT) Twitter: [https://twitter.com/OptimFi](https://twitter.com/OptimFi) Medium: [https://optim-labs.medium.com/](https://optim-labs.medium.com/) GitHub: [https://github.com/OptimFinance](https://github.com/OptimFinance) [NextRoadmap](https://optim-finance.gitbook.io/optim-finance/introduction/roadmap) Last updated 1 year ago * [Products](https://optim-finance.gitbook.io/optim-finance/#products) * [Social Media Channels](https://optim-finance.gitbook.io/optim-finance/#social-media-channels) --- # Roadmap | Optim Finance Optim's Roadmap is centered around making Yield products and aggregation accessible to all. Through its products, Optim Finance will leverage the blossoming DeFi ecosystem on Cardano - the world’s most decentralized Proof-of-Stake blockchain - to empower markets to efficiently allocate capital where it’s needed most. This is a vision that will span from utilizing ADA staking, to exploring integration of Real World Assets into DeFi. **Q2 2024:** * OADA system launch & scaling * OUSD design and structure * Optim ODAO upgrade (design phase) **Q3 2024:** * OADA Liqwid AMO + additional DEX integration * OUSD MOUs and implementation specs **Q4 2024:** * OADA system scale to 50M+ * Optim ODAO upgrade code **Q1 2025** * OUSD Launch * ODAO on-chain governance software testing [](https://optim-finance.gitbook.io/optim-finance/introduction/roadmap#undefined) ------------------------------------------------------------------------------------- [PreviousIntroduction](https://optim-finance.gitbook.io/optim-finance) [NextOverview](https://optim-finance.gitbook.io/optim-finance/oada/overview) Last updated 1 year ago --- # Overview | Optim Finance ![](https://optim-finance.gitbook.io/optim-finance/~gitbook/image?url=https%3A%2F%2F424855560-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252F6BTbmCnORqGhhdMDWeQO%252Fuploads%252FJqSTYWhNUNLiwT6qqsAe%252F1_aSSXdaryUnxrtE-rBGk53A.webp%3Falt%3Dmedia%26token%3De1dc5b62-0a8d-4797-95d2-3b50ca7170b3&width=768&dpr=4&quality=100&sign=fbcab7f5&sv=2) [OADA](https://app.optim.finance/oada/mint-stake-earn) is an innovative ADA derivative system on Cardano that provides users with superior yield opportunities, enhanced governance, and DeFi composability. The OADA system is the first true yield aggregation dApp on Cardano. ADA deposited into the system to mint OADA is deployed productively into strategies via [Algorithmic Market Operations](https://optim-finance.gitbook.io/optim-finance/oada/amos) \[AMOs\] to generate yield for users. * * * [](https://optim-finance.gitbook.io/optim-finance/oada/overview#high-level-architecture) High Level Architecture --------------------------------------------------------------------------------------------------------------------- ### [](https://optim-finance.gitbook.io/optim-finance/oada/overview#oada-and-soada) [OADA 🟣 and sOADA 🟢](https://optim-finance.gitbook.io/optim-finance/oada/oada-and-soada) The system utilizes two tokens: **OADA** and **sOADA**. * **OADA** is pegged to ADA but doesn't receive any yield. * **sOADA** is staked OADA. It is not a pegged token, but it receives all of the yield generated by the system and also bears the risk of any unlikely losses the system may take on. ### [](https://optim-finance.gitbook.io/optim-finance/oada/overview#splash-dex) [Splash Dex](https://optim-finance.gitbook.io/optim-finance/oada/amos/splash-dex-amo) The OADA system is integrated deeply with the [OADA/ADA stableswap pool](https://app.splash.trade/liquidity/9b04cc602ed685b69356c050653ffd92bb291f8e599dc9827252ef41.6e6674) on Splash. The Splash DEX AMO is what maintains OADA's peg to ADA. The Splash DEX is also how users exit their OADA position - there is no direct redemption mechanism for OADA back to ADA. ### [](https://optim-finance.gitbook.io/optim-finance/oada/overview#epoch-stake-auction) [Epoch Stake Auction](https://optim-finance.gitbook.io/optim-finance/oada/amos/stake-auction-amo) Throughout each epoch, users can bid on the staking power of all ADA in the system's reserves. This can be useful for Governance, ISPOs, and other yield strategies. This utility of borrowing staking power should be familiar to users of the previous Optim product [Liquidity Bonds](https://optim-finance.gitbook.io/optim-finance/liquidity-bonds/overview) . Near the end of each epoch, ADA reserves are pulled from strategies, the stake power gets auctioned off, and after the next epoch begins the ADA reserves are redeployed into strategies again via AMOs. [PreviousRoadmap](https://optim-finance.gitbook.io/optim-finance/introduction/roadmap) [NextOADA 🟣 and sOADA 🟢](https://optim-finance.gitbook.io/optim-finance/oada/oada-and-soada) Last updated 1 year ago * [High Level Architecture](https://optim-finance.gitbook.io/optim-finance/oada/overview#high-level-architecture) * [OADA 🟣 and sOADA 🟢](https://optim-finance.gitbook.io/optim-finance/oada/overview#oada-and-soada) * [Splash Dex](https://optim-finance.gitbook.io/optim-finance/oada/overview#splash-dex) * [Epoch Stake Auction](https://optim-finance.gitbook.io/optim-finance/oada/overview#epoch-stake-auction) --- # Flow of Funds | Optim Finance The flow of a user's funds within the OADA system can be described generally as follows: 1. Users [mint](https://app.optim.finance/oada/mint-stake-earn#mint) OADA with ADA 2. OADA holders can either use OADA in DeFi, or they can [stake](https://app.optim.finance/oada/mint-stake-earn#stake) it for sOADA 3. Over time, sOADA accumulates yield generated by the system's [AMOs](https://optim-finance.gitbook.io/optim-finance/oada/amos) 4. Eventually when users want to exit their sOADA position, they will [unstake](https://app.optim.finance/oada/mint-stake-earn#unstake) their sOADA to receive OADA again. The conversion rate of sOADA back to OADA will reflect the yield generated by the system (i.e. their sOADA will be worth more OADA unless the system has taken a loss) 5. Users exit their OADA position by [swapping](https://app.splash.trade/ADA-OADA) back to ADA on the Splash Stableswap ![](https://optim-finance.gitbook.io/optim-finance/~gitbook/image?url=https%3A%2F%2F424855560-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252F6BTbmCnORqGhhdMDWeQO%252Fuploads%252Fint87RxnFVAINBaU8ulI%252Fspaces_6BTbmCnORqGhhdMDWeQO_uploads_diN8hrg0oHa5iXsj7JDw_image.webp%3Falt%3Dmedia%26token%3D1693e887-209c-4359-ae58-20e2068aebf5&width=768&dpr=4&quality=100&sign=5101e4ec&sv=2) [PreviousOADA 🟣 and sOADA 🟢](https://optim-finance.gitbook.io/optim-finance/oada/oada-and-soada) [NextUser Guides](https://optim-finance.gitbook.io/optim-finance/oada/user-guides) Last updated 1 year ago --- # Passive yield with sOADA | Optim Finance ![](https://optim-finance.gitbook.io/optim-finance/~gitbook/image?url=https%3A%2F%2F424855560-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252F6BTbmCnORqGhhdMDWeQO%252Fuploads%252FfGGGIfVl71Y4phvM11wA%252FGTNCsU3aYAIUnot.jpeg%3Falt%3Dmedia%26token%3D5eab87ce-cfdd-4656-903f-d6e11980221a&width=768&dpr=4&quality=100&sign=cb0dbb6b&sv=2) Yield is not fixed and will change each epoch Earning yield with sOADA is very simple. It does not require active management, and users will earn greater yield than the base staking rate. * * * [](https://optim-finance.gitbook.io/optim-finance/oada/user-guides/passive-yield-with-soada#mint) [Mint](https://app.optim.finance/oada/mint-stake-earn#mint) ------------------------------------------------------------------------------------------------------------------------------------------------------------------- The first step to earning with sOADA is minting OADA. The minimum amount that can be deposited at a time is 100 ADA. There is a 1 ADA transaction fee added whenever you mint OADA. For this reason, it is generally better to mint one large amount rather than multiple small amounts. ![](https://optim-finance.gitbook.io/optim-finance/~gitbook/image?url=https%3A%2F%2F424855560-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252F6BTbmCnORqGhhdMDWeQO%252Fuploads%252FZHbG6uAVL3pdCnYv9c1J%252FScreenshot%25202024-07-28%2520at%25203.56.23%2520PM.png%3Falt%3Dmedia%26token%3D690accd5-b186-4659-96a6-b0e246afd3fc&width=768&dpr=4&quality=100&sign=8ca8fe20&sv=2) [](https://optim-finance.gitbook.io/optim-finance/oada/user-guides/passive-yield-with-soada#stake) [Stake](https://app.optim.finance/oada/mint-stake-earn#stake) ---------------------------------------------------------------------------------------------------------------------------------------------------------------------- After you have minted your OADA, it is time to stake it. Unlike minting, there is no minimum amount when staking. However, users should be aware of the maximum staking capacity. There is a 2 ADA fee for staking OADA, similar to minting. The percentage shown above the UI displays the APY of the previous epoch. Yield is not fixed and is likely to change over time. ![](https://optim-finance.gitbook.io/optim-finance/~gitbook/image?url=https%3A%2F%2F424855560-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252F6BTbmCnORqGhhdMDWeQO%252Fuploads%252FFlcStRNdSBO71H7T0vfQ%252FGTNFzowaYAAgtR2.png%3Falt%3Dmedia%26token%3Decce3499-d365-4f5f-a23c-c6f1350fa41e&width=768&dpr=4&quality=100&sign=78c268cb&sv=2) Users should be aware of the max capacity on the staking vault. If the cap is full, stakers will either have to wait until later, or they can add their funds to the staking queue and they will automatically be staked once the queue opens up. Funds enter from the queue in order they were deposited. The queue does not lock your funds, so you are free to exit the queue at any time. ![](https://optim-finance.gitbook.io/optim-finance/~gitbook/image?url=https%3A%2F%2F424855560-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252F6BTbmCnORqGhhdMDWeQO%252Fuploads%252F8PuJXUPKPlAmP6AR8Zup%252FScreenshot%25202024-07-28%2520at%25204.05.46%2520PM.png%3Falt%3Dmedia%26token%3Dda038365-6823-4376-a7f4-fe6ec5acda9e&width=768&dpr=4&quality=100&sign=3a9d9ff4&sv=2) [](https://optim-finance.gitbook.io/optim-finance/oada/user-guides/passive-yield-with-soada#earn) Earn ----------------------------------------------------------------------------------------------------------- With your sOADA in your wallet, you are free to use it as you would any other CNT. Integrations with lending markets and other DeFi products are currently being explored. sOADA is particularly attractive for this use case because it is a yield bearing token. However, even if you do nothing with it in your wallet you will still be earning better yields than you would from staking ADA. Yield is auto-compounding and can be tracked in the unstake tab. The difference between the figure in the box at the bottom and "Amount" box is a rough approximation of your net profit (this will only be technically accurate if the conversion ratio of OADA:sOADA at time of staking was exactly 1:1) ![](https://optim-finance.gitbook.io/optim-finance/~gitbook/image?url=https%3A%2F%2F424855560-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252F6BTbmCnORqGhhdMDWeQO%252Fuploads%252FalOtIw8BMJWKvCpsgSoy%252FScreenshot%25202024-07-28%2520at%25204.14.14%2520PM.png%3Falt%3Dmedia%26token%3D99279513-7d44-4972-9da0-f40040b6ec04&width=768&dpr=4&quality=100&sign=94b882a9&sv=2) 7947.41 - 7896.94 = **50.47 ADA profit** [](https://optim-finance.gitbook.io/optim-finance/oada/user-guides/passive-yield-with-soada#unstake) [Unstake](https://app.optim.finance/oada/mint-stake-earn#unstake) ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Eventually you will decide it is time to exit your position. The first step is unstaking your sOADA. Users are free to unstake their sOADA whenever they like, but there is a 2 ADA fee to unstake, similar to staking and minting as discussed above. The amount shown in the bottom box is the total OADA you will receive after the fee is subtracted. ![](https://optim-finance.gitbook.io/optim-finance/~gitbook/image?url=https%3A%2F%2F424855560-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252F6BTbmCnORqGhhdMDWeQO%252Fuploads%252Fpntzv86jkzLmQGr5QuR4%252FScreenshot%25202024-07-28%2520at%25204.21.41%2520PM.png%3Falt%3Dmedia%26token%3D22d222b2-c11c-423e-b456-695593e94177&width=768&dpr=4&quality=100&sign=e1b4a226&sv=2) [](https://optim-finance.gitbook.io/optim-finance/oada/user-guides/passive-yield-with-soada#swap) [Swap](https://app.splash.trade/ADA-OADA) ------------------------------------------------------------------------------------------------------------------------------------------------- With your newly unstake OADA, you will head to the Splash OADA/ADA stableswap. This pool is configured to have very deep liquidity. You can see even with a very large position the slippage is very low. Worth noting: the pools liquidity will always be deepest at the beginning of each new epoch so that will likely be the cheapest time to swap. ![](https://optim-finance.gitbook.io/optim-finance/~gitbook/image?url=https%3A%2F%2F424855560-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252F6BTbmCnORqGhhdMDWeQO%252Fuploads%252FrA4hkrxzukN1t8e2F7NO%252FScreenshot%25202024-07-28%2520at%25204.25.33%2520PM.png%3Falt%3Dmedia%26token%3D06105050-f912-4494-a082-c496792847f5&width=768&dpr=4&quality=100&sign=ea2fcf5c&sv=2) Confirm the transaction and you are finished. Mint > Stake > Earn [PreviousUser Guides](https://optim-finance.gitbook.io/optim-finance/oada/user-guides) [NextEpoch Stake Auction](https://optim-finance.gitbook.io/optim-finance/oada/user-guides/epoch-stake-auction) Last updated 1 year ago * [Mint](https://optim-finance.gitbook.io/optim-finance/oada/user-guides/passive-yield-with-soada#mint) * [Stake](https://optim-finance.gitbook.io/optim-finance/oada/user-guides/passive-yield-with-soada#stake) * [Earn](https://optim-finance.gitbook.io/optim-finance/oada/user-guides/passive-yield-with-soada#earn) * [Unstake](https://optim-finance.gitbook.io/optim-finance/oada/user-guides/passive-yield-with-soada#unstake) * [Swap](https://optim-finance.gitbook.io/optim-finance/oada/user-guides/passive-yield-with-soada#swap) --- # Epoch Stake Auction | Optim Finance Staking rights are are valuable in the Cardano ecosystem, especially as we move into the era of governance. For now, acquisition of stake power can be a useful strategy for leveraging on ISPOs or Catalyst. The Epoch Stake Auction is an app that allows users to bid on the staking rights of all of the ADA reserves in the OADA system. The auction is a Dutch Auction that takes place every epoch, meaning the stake is sold gradually to the highest bidders over the course of the epoch. Staking rights won in the auction are retained only for the single epoch during which bids are matched. [](https://optim-finance.gitbook.io/optim-finance/oada/user-guides/epoch-stake-auction#dashboard) [Dashboard](https://app.optim.finance/epoch-stake-auction/dashboard) ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------- The first step in using the Epoch Stake Auction is navigating to the dashboard, as shown below: ![](https://optim-finance.gitbook.io/optim-finance/~gitbook/image?url=https%3A%2F%2F424855560-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252F6BTbmCnORqGhhdMDWeQO%252Fuploads%252FEY77SbO9EAo3QcOl6OVX%252FScreenshot%25202024-07-30%2520at%25202.15.01%2520PM.png%3Falt%3Dmedia%26token%3D05f3a149-71c2-4c5e-97b2-6125ddb70291&width=768&dpr=4&quality=100&sign=8f50f9b1&sv=2) The dashboard displays pertinent information such as: * **Epoch Number** \- the current Cardano epoch. * **Estimated Available Stake -** the amount of stake that has not yet been bought. * **Auction End** \- the amount of time until the epoch and Stake Auction end. * **Sold Stake** \- the amount of stake that has already been bought for the current epoch. ![](https://optim-finance.gitbook.io/optim-finance/~gitbook/image?url=https%3A%2F%2F424855560-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252F6BTbmCnORqGhhdMDWeQO%252Fuploads%252F5hPcIXwDsgYyYmpStrdc%252FScreenshot%25202024-07-30%2520at%25202.13.57%2520PM.png%3Falt%3Dmedia%26token%3Da54f5edb-fdd6-42fb-bc07-aac02311de0e&width=768&dpr=4&quality=100&sign=e6d88a01&sv=2) * **Order Book Depth Chart** - visualizes the quantity of bids at various APR levels. ![](https://optim-finance.gitbook.io/optim-finance/~gitbook/image?url=https%3A%2F%2F424855560-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252F6BTbmCnORqGhhdMDWeQO%252Fuploads%252FjOaZ0dYEJEYBG9O4MV0q%252FScreenshot%25202024-07-30%2520at%25201.57.59%2520PM.png%3Falt%3Dmedia%26token%3Da27ea80b-f7ff-4004-9a32-5eea224ebbe1&width=768&dpr=4&quality=100&sign=45a193d8&sv=2) * **Active Orders** - displays bids submitted, including the quantity of ADA stake being bid on, and the APR offered to the system in exchange for the stake. ![](https://optim-finance.gitbook.io/optim-finance/~gitbook/image?url=https%3A%2F%2F424855560-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252F6BTbmCnORqGhhdMDWeQO%252Fuploads%252FGVi1NphEx3XJk52BXmth%252FScreenshot%25202024-07-30%2520at%25201.58.14%2520PM.png%3Falt%3Dmedia%26token%3D70f6b84c-baee-422c-be1f-a4258544f62c&width=768&dpr=4&quality=100&sign=459ac08c&sv=2) * **Order Window** - The interface users engage with to place market or limit orders on the stake. ![](https://optim-finance.gitbook.io/optim-finance/~gitbook/image?url=https%3A%2F%2F424855560-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252F6BTbmCnORqGhhdMDWeQO%252Fuploads%252Ft93FgRkhobU6DNfyUioB%252FScreenshot%25202024-07-30%2520at%25202.14.08%2520PM.png%3Falt%3Dmedia%26token%3D4b16684d-1b98-41cf-a926-f7af3ff5e383&width=768&dpr=4&quality=100&sign=d188f912&sv=2) * * * [](https://optim-finance.gitbook.io/optim-finance/oada/user-guides/epoch-stake-auction#how-does-bidding-work) How Does Bidding Work? ----------------------------------------------------------------------------------------------------------------------------------------- Before you place your order for stake, it's important to understand how they work. ### [](https://optim-finance.gitbook.io/optim-finance/oada/user-guides/epoch-stake-auction#market-orders) Market Orders For Market Orders, the Auction utilizes a **Market Clearing Interest Rate** to determine the current market demand for bids on stake. As more users place market orders, the clearing rate will rise to reflect the increase in demand. If the amount of market orders slows, the clearing rate will decrease to reflect the diminishing demand. When a users places a market order for stake, their order will be matched immediately at the Market Clearing Interest Rate. ![](https://optim-finance.gitbook.io/optim-finance/~gitbook/image?url=https%3A%2F%2F424855560-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252F6BTbmCnORqGhhdMDWeQO%252Fuploads%252FqCBz0YPXz5KjPvT58NBp%252FScreenshot%25202024-07-30%2520at%25202.44.10%2520PM.png%3Falt%3Dmedia%26token%3Db6c96aa8-2be8-4be4-8636-2c2e876e6c21&width=768&dpr=4&quality=100&sign=3f11bb95&sv=2) ### [](https://optim-finance.gitbook.io/optim-finance/oada/user-guides/epoch-stake-auction#limit-orders) Limit Orders For Limit Orders, the user will specify the interest rate they wish to offer the system. Unlike Market Orders, Limit Orders will sit open and unmatched until the Market Clearing Interest Rate crosses the price of the Limit Order. For this reason, the highest % orders in the book will get matched first. When Limit Orders get matched, they will raise the Market Clearing Interest Rate temporarily. ![](https://optim-finance.gitbook.io/optim-finance/~gitbook/image?url=https%3A%2F%2F424855560-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252F6BTbmCnORqGhhdMDWeQO%252Fuploads%252FPTipRzSWy9CmrJaMR8Rd%252FScreenshot%25202024-07-30%2520at%25202.44.20%2520PM.png%3Falt%3Dmedia%26token%3Da7040426-00d8-4f53-a0d2-4746462eafed&width=768&dpr=4&quality=100&sign=9ceb870d&sv=2) Limit orders can remain open indefinitely until they are eventually matched, and the order will remain staked so you do not forgo ADA staking rewards while waiting. * * * [](https://optim-finance.gitbook.io/optim-finance/oada/user-guides/epoch-stake-auction#placing-a-market-order) Placing a Market Order ------------------------------------------------------------------------------------------------------------------------------------------ 1. Enter the requested stake amount. * The maximum amount to request is limited by estimated available stake. The minimum order size is 250,000 ADA. 2. Market Clearing Interest Rate (APR%) will be automatically calculated. 3. Total Bid Amount is automatically calculated. * This is the total payment amount you will spend to acquire the staking rights for this order. 4. Choose to pay for the bid in ADA or OADA. * Paying in OADA gives your order a 0.2% priority APY boost. 5. Enter the stake address you want the rented ADA to be associated with. * The default value comes from your connected wallet. 6. Click on the "Bid Now" button. 7. Sign the transaction and wait for confirmation. The stake will be attached to your key. ![](https://optim-finance.gitbook.io/optim-finance/~gitbook/image?url=https%3A%2F%2Flh7-us.googleusercontent.com%2Fdocsz%2FAD_4nXdGNJmRHx0FS0A6Hm9l2Sb70e--VBo2TbigpNl3eTIESAF37zPauCkTE0sMHsAf9kq1yJ437TygChlWgiRYl1HY1zwbnoDLD5GV5AIQ6tVb9i-7Wbu54SGTqkbRbd3BTYZWALBPgYpa2mbUzgJPtV2tmE8%3Fkey%3DIb1j0vRHBT63j2a8zZQe6A&width=768&dpr=4&quality=100&sign=66fb6d8d&sv=2) [](https://optim-finance.gitbook.io/optim-finance/oada/user-guides/epoch-stake-auction#placing-a-limit-order) Placing a Limit Order ---------------------------------------------------------------------------------------------------------------------------------------- 1. Specify whether your order is _**Partial Fill**_ or _**Fill or Kill**_. * Partial Fill orders can be matched gradually in chunks. This is the behavior most users will expect, as it allows the order to fill whenever the Market Clearing Rate passes across their order's interest rate. * Fill or Kill orders will only be matched if there is enough liquidity to completely fill the order, or it will not be filled at all. This is not recommended for most users. 2. Enter the requested stake amount. * The maximum amount to request is limited by estimated available stake. The minimum order size is 250,000 ADA. 3. Enter the Interest Rate (APR%) you would like to pay for this order. * Higher rates will cost you more but will be more likely to be matched. Check the order book to see competitive rates on limit orders. 4. Total Bid Amount is automatically calculated. * This is the total payment amount you will spend to acquire the staking rights for this order. 5. Choose to pay for the bid in ADA or OADA. * Paying in OADA gives your order a 0.2% priority APY boost. 6. Enter the stake address you want the rented ADA to be associated with. * The default value comes from your connected wallet. 7. Click on the "Bid Now" button. 8. Sign the transaction and wait for confirmation. ![](https://optim-finance.gitbook.io/optim-finance/~gitbook/image?url=https%3A%2F%2Flh7-us.googleusercontent.com%2Fdocsz%2FAD_4nXf5MO_lRwoe3vjQbaLDKn25QMNRuFxJBhurVXGxelSLU5JL1yTxNX3szHTeVxQtICU-o1lBJiWPGi7xXzofH1QQSKU4ihUSCTlKstBZokpnXs3qmrWwZKvn_WDNw-i6yvRDM6pnKY3Q4g_iD-M4JFmF9B4%3Fkey%3DIb1j0vRHBT63j2a8zZQe6A&width=768&dpr=4&quality=100&sign=37a31d68&sv=2) ### [](https://optim-finance.gitbook.io/optim-finance/oada/user-guides/epoch-stake-auction#limit-order-placed) Limit Order Placed * Once completed, your order will be displayed in the Your Bids section at the bottom of the dashboard page. * You can cancel your bid by clicking the "Cancel Bid" button up to two hours before the epoch ends. * If your order is filled, the ADA will be associated with your Stake Key during the epoch boundary snapshot. * If the order is not filled, your order will sit open indefinitely until it fills or you cancel it. * if ADA was used to place the order, it will collect staking rewards if it does not get matched during the epoch the bid was placed. ![](https://optim-finance.gitbook.io/optim-finance/~gitbook/image?url=https%3A%2F%2Flh7-us.googleusercontent.com%2Fdocsz%2FAD_4nXcVNSr63FsmboOprAAaLAg_fZFWxs2DWfK5_Z5alT2PR4ODQd93o4H-aXfDDlrsr61eCw0NZBFAWS_NMm9nYZ1Xen9A0OO75WMkh0xcr33YD2cjCA29JH1JJOqyDcIlzbuw8wgK6r1h0pTEL2kk5ZwTgbk6%3Fkey%3DIb1j0vRHBT63j2a8zZQe6A&width=768&dpr=4&quality=100&sign=9202d157&sv=2) [PreviousPassive yield with sOADA](https://optim-finance.gitbook.io/optim-finance/oada/user-guides/passive-yield-with-soada) [NextAMOs](https://optim-finance.gitbook.io/optim-finance/oada/amos) Last updated 1 year ago * [Dashboard](https://optim-finance.gitbook.io/optim-finance/oada/user-guides/epoch-stake-auction#dashboard) * [How Does Bidding Work?](https://optim-finance.gitbook.io/optim-finance/oada/user-guides/epoch-stake-auction#how-does-bidding-work) * [Market Orders](https://optim-finance.gitbook.io/optim-finance/oada/user-guides/epoch-stake-auction#market-orders) * [Limit Orders](https://optim-finance.gitbook.io/optim-finance/oada/user-guides/epoch-stake-auction#limit-orders) * [Placing a Market Order](https://optim-finance.gitbook.io/optim-finance/oada/user-guides/epoch-stake-auction#placing-a-market-order) * [Placing a Limit Order](https://optim-finance.gitbook.io/optim-finance/oada/user-guides/epoch-stake-auction#placing-a-limit-order) * [Limit Order Placed](https://optim-finance.gitbook.io/optim-finance/oada/user-guides/epoch-stake-auction#limit-order-placed) --- # OADA 🟣 and sOADA 🟢 | Optim Finance The system splits ADA into two fundamental token components: **OADA** and **sOADA**. OADA is a stablecoin pegged to ADA that does not provide any staking rewards or governance capabilities. On the other hand, sOADA is an un-pegged token but is the beneficiary of all yield generated by the OADA system. ![](https://optim-finance.gitbook.io/optim-finance/~gitbook/image?url=https%3A%2F%2F424855560-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252F6BTbmCnORqGhhdMDWeQO%252Fuploads%252FIRvNjqBA7h3VcbnGckgB%252FGNKDoJWaYAAkmyC%2520%282%29.jpeg%3Falt%3Dmedia%26token%3Dd21fdf7e-e22b-489f-8268-06d8b218d93e&width=768&dpr=4&quality=100&sign=fc99811&sv=2) ### [](https://optim-finance.gitbook.io/optim-finance/oada/oada-and-soada#oada) OADA 🟣 Users can freely mint OADA 1:1 with ADA at any time. OADA can be traded, used to provide liquidity, used as collateral for loans, and more within the Cardano ecosystem - just as ADA can be. If a user wants to convert OADA back to ADA, he must swap it on the OADA/ADA stableswap on Splash. There is no direct redemption mechanism. This is done to more fairly price the cost of exiting the system with slippage rather than tiered fees. OADA maintains its peg within a one percent range (0.99-1.01). The system accomplishes this with the [**Splash DEX AMO**](https://optim-finance.gitbook.io/optim-finance/oada/amos/splash-dex-amo) , which manages the OADA/ADA stableswap exchange rate on Splash. If OADA rises above peg, OADA will be minted and sold into the pool to balance the peg lower. If OADA falls below peg, the system will use ADA reserves to buy OADA and rebalance the pool higher. Both of these actions generate profits for the system. ### [](https://optim-finance.gitbook.io/optim-finance/oada/oada-and-soada#soada) sOADA 🟢 Users can stake their OADA to receive sOADA. Like OADA, sOADA can be used freely across Cardano DeFi but is also the benefactor of all profits generated by system. As these profits accrue, yield is auto-compounded and the exchange rate of sOADA back to OADA will increase. Users can unstake their sOADA freely at any time. If users want to stake their OADA, but the system’s staking capacity has been filled, users can queue to stake once the cap has been raised. This capacity-raising process is managed by members of the [Optim DAO](https://optim-finance.gitbook.io/optim-finance/oada/governance) . Users should be aware that sOADA absorbs any potential losses should the system encounter unforeseen issues or market anomalies. Under normal operations, system losses are unlikely to occur due to the OADA system's design, which emphasizes minimized risk exposure. The strategies employed by AMOs are parameterized to limit exposure to smart contract risks and low-level lending risks, ensuring that the probability of losses is minimized. System risks are elaborated on further in the [whitepaper](https://github.com/OptimFinance/public-documents/blob/main/The_OADA_System.pdf) . Token Policy ID OADA 🟣 f6099832f9563e4cf59602b3351c3c5a8a7dda2d44575ef69b82cf8d sOADA 🟢 02a574e2f048e288e2a77f48872bf8ffd61d73f9476ac5a83601610b [PreviousOverview](https://optim-finance.gitbook.io/optim-finance/oada/overview) [NextFlow of Funds](https://optim-finance.gitbook.io/optim-finance/oada/flow-of-funds) Last updated 1 year ago * [OADA 🟣](https://optim-finance.gitbook.io/optim-finance/oada/oada-and-soada#oada) * [sOADA 🟢](https://optim-finance.gitbook.io/optim-finance/oada/oada-and-soada#soada) --- # User Guides | Optim Finance [Passive yield with sOADA](https://optim-finance.gitbook.io/optim-finance/oada/user-guides/passive-yield-with-soada) [Epoch Stake Auction](https://optim-finance.gitbook.io/optim-finance/oada/user-guides/epoch-stake-auction) [PreviousFlow of Funds](https://optim-finance.gitbook.io/optim-finance/oada/flow-of-funds) [NextPassive yield with sOADA](https://optim-finance.gitbook.io/optim-finance/oada/user-guides/passive-yield-with-soada) --- # Stake Auction AMO | Optim Finance ![](https://optim-finance.gitbook.io/optim-finance/~gitbook/image?url=https%3A%2F%2F424855560-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252F6BTbmCnORqGhhdMDWeQO%252Fuploads%252Fsb640dXfjrXWr9wJ2R8L%252FOptim%2520%281%29.png%3Falt%3Dmedia%26token%3Da9cfe6c6-fa16-4fe5-8bc5-96983d4a2221&width=768&dpr=4&quality=100&sign=3ec306f1&sv=2) The Stake Auction AMO optimizes the use of ADA within the system by selling the staking rights of the ADA reserves to the highest bidders throughout the epoch in a Continuous Dutch Auction. During the epoch while orders are being placed, ADA reserves are deployed elsewhere in other strategies. Then, at the end of the epoch, ADA reserves are pulled from those strategies and deployed into the Stake Auction to have the staking rights matched to the highest bidders' stake keys. This mechanism maximizes capital efficiency of the OADA system and yield for sOADA holders. A user guide for the Stake Auction dApp can be found [here](https://optim-finance.gitbook.io/optim-finance/oada/user-guides/epoch-stake-auction) . * * * [](https://optim-finance.gitbook.io/optim-finance/oada/amos/stake-auction-amo#during-the-epoch) During the Epoch --------------------------------------------------------------------------------------------------------------------- The Stake Auction operates continuously throughout the epoch until it is time to undeploy the ADA reserves from other strategies. By utilizing a Continuous Dutch Auction, the system minimizes the ability for bidders to strategically place orders at the last minute, thereby ensuring the highest profitability given the demand for stake. To determine the current price of stake, the Stake Auction Controller employs a pricing curve based on the time elapsed in the epoch and the remaining reserves to be sold. The auction uses a minimum match size of 250,000 ADA stake and processes bids on a first-come, first-served basis, sorted in descending order by the Annual Percentage Yield (APY) offered. When sufficient bids are accumulated to meet the minimum match size, the system reprices the clearing rate to be at least equal to the rate just received. This means that the price of the next matched bids will be set to ensure the system receives at least as much as it did in the previous transaction. The system will then match these orders and lock the stake with the chosen stake key until the epoch concludes. The use of a Continuous Dutch Auction allows the system to dynamically adjust pricing based on real-time demand, optimizing yield for the system and maintaining flexibility in stake allocation. The System’s Market Clearing Interest Rate is defined as the following function: ![](https://optim-finance.gitbook.io/optim-finance/~gitbook/image?url=https%3A%2F%2F424855560-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252F6BTbmCnORqGhhdMDWeQO%252Fuploads%252FyGeJ4NjNeR1cSh8iQti2%252FScreenshot%25202024-07-30%2520at%25204.42.42%2520PM.png%3Falt%3Dmedia%26token%3Df3e8de84-85ad-489a-9029-980e273fbe8c&width=768&dpr=4&quality=100&sign=12d261d0&sv=2) Where * BR = 2.7% = Base Rate (What is the bid floor, set close to the staking rate on ADA) * PR = 2% = Projected Rate (What the system expects the opportunity cost of not matching bids to be) * SR = System Reserves (in ADA, total) * SRIL = System Reserves In Locks (already offloaded stake) * T = Time in epoch, a number from 0 to 100 uniformly dividing the entire cardano epoch * * * [](https://optim-finance.gitbook.io/optim-finance/oada/amos/stake-auction-amo#end-of-epoch) End of Epoch ------------------------------------------------------------------------------------------------------------- Before the epoch ends, a recall event takes place that pulls all reserves out out strategies and into the Stake Auction AMO. During this time, the ADA is paired with stake keys to fulfill the stake bids that were placed and filled throughout the epoch. These funds remain in the Stake Auction AMO until the end of the epoch. At this point, the system synchronizes profits from the auction and prepares to redeploy the funds across the rest of the system's strategies. The actual settlement of the auction occurs within one hour before the epoch ends, ensuring that all transactions are completed and profits are accurately accounted for. * * * [](https://optim-finance.gitbook.io/optim-finance/oada/amos/stake-auction-amo#voltaire-and-cardano-governance) Voltaire and Cardano Governance --------------------------------------------------------------------------------------------------------------------------------------------------- The system allows Voltaire vote power to be acquired, as it is derived from one’s stake key weight. Given the governance process of Voltaire, participants are informed one epoch in advance about any important votes scheduled for the next epoch. This ensures transparency and prevents any last-minute surprises in the ratification of proposals. The governance process in Voltaire operates such that proposals must pass through at least two epoch boundaries before ratification. The first boundary allows for the voting process, giving stakeholders sufficient time to consider and cast their votes. The second boundary is used to determine whether the proposal has been ratified or rejected. This structured timeline ensures that all proposals undergo thorough scrutiny and that stakeholders have ample time to participate in the decision-making process. * * * [](https://optim-finance.gitbook.io/optim-finance/oada/amos/stake-auction-amo#catalyst-snapshot-event) Catalyst Snapshot Event ----------------------------------------------------------------------------------------------------------------------------------- If a Catalyst vote power snapshot is scheduled near an epoch boundary, the system must decide whether to auction off the stake power or retain it for the Optim ODAO. The current policy is to only accept bids offering an Annual Percentage Yield of 100% or higher for that epoch boundary. If the snapshot is not near a boundary, the system will capture all the vote power for the ODAO. When the ODAO captures vote power, the ADA rewards for voting, including stake rewards if on an epoch boundary, are funneled back into the OADA system through the Donation Strategy. This integration ensures that the voting rewards contribute to the overall yield and stability of the system. It is important to note that, due to the centralized nature of the Catalyst snapshot process (especially when no exact snapshot slot is provided), the Controller cannot guarantee that this operation will always be carried out as described. Despite this, the system aims to maximize the benefits from vote power while adhering to the current policy guidelines. [PreviousSplash DEX AMO](https://optim-finance.gitbook.io/optim-finance/oada/amos/splash-dex-amo) [NextStaking AMO](https://optim-finance.gitbook.io/optim-finance/oada/amos/staking-amo) Last updated 1 year ago * [During the Epoch](https://optim-finance.gitbook.io/optim-finance/oada/amos/stake-auction-amo#during-the-epoch) * [End of Epoch](https://optim-finance.gitbook.io/optim-finance/oada/amos/stake-auction-amo#end-of-epoch) * [Voltaire and Cardano Governance](https://optim-finance.gitbook.io/optim-finance/oada/amos/stake-auction-amo#voltaire-and-cardano-governance) * [Catalyst Snapshot Event](https://optim-finance.gitbook.io/optim-finance/oada/amos/stake-auction-amo#catalyst-snapshot-event) --- # Humanitarian Partnership | Optim Finance Switzerland for UNHCR oversees all donated yields, directing funds strategically toward priority humanitarian initiatives. This collaborative approach ensures donations are effectively and transparently utilized, with comprehensive recordkeeping. Regular performance reviews and impact assessments, combined with detailed on-chain data, keep donors and OADA community members continuously informed about the impact and effectiveness of their contributions. [PreviousIntegration with the OADA Ecosystem](https://optim-finance.gitbook.io/optim-finance/oada/unhcr-donation-module/integration-with-the-oada-ecosystem) [NextFuture Extensions](https://optim-finance.gitbook.io/optim-finance/oada/unhcr-donation-module/future-extensions) Last updated 7 months ago --- # Staking AMO | Optim Finance ![](https://optim-finance.gitbook.io/optim-finance/~gitbook/image?url=https%3A%2F%2F424855560-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252F6BTbmCnORqGhhdMDWeQO%252Fuploads%252FQuD0VxYZxnU5TffYEhw8%252FOptim%2520%282%29.png%3Falt%3Dmedia%26token%3Da2291602-87fb-42e7-afca-7d698e85ed5f&width=768&dpr=4&quality=100&sign=63698ec3&sv=2) The Staking AMO is responsible for distributing all of the system profits back to sOADA holders. At the end of each epoch, all of the accounting heads down a pipeline from the system's strategies to the Staking AMO. It tracks total profits of all strategies from the epoch, and accounts for the ODAO Fee\*. Then, the Staking AMO distributes all profits to the sOADA holders by way of increasing the sOADA/OADA exchange rate. Because yield is only distributed to sOADA holders, any outstanding OADA in the system that is not converted to sOADA effectively becomes yield leverage. * * * \*ODAO fees accumulate in sOADA and circumvent the cap on staked amount upon accrual, and may be claimed anytime by the fee claimer token. ODAO Fee is currently set to 20% of all system profits. [PreviousStake Auction AMO](https://optim-finance.gitbook.io/optim-finance/oada/amos/stake-auction-amo) [NextUNHCR Donation Module](https://optim-finance.gitbook.io/optim-finance/oada/unhcr-donation-module) Last updated 1 year ago --- # UNHCR Donation Module | Optim Finance The UNHCR Donation Module is an user friendly feature within the OADA platform, created in collaboration with Switzerland for UNHCR. It allows users to contribute to humanitarian aid effortlessly by donating a portion of the interest earned from their investments—without ever touching their original investment amount. With this module, users can conveniently choose to donate 25%, 50%, 75%, or 100% of their earnings. This approach ensures your initial investment remains untouched while continuously supporting impactful humanitarian efforts. Built upon OADA’s existing Donation Strategy, this module adds extra capabilities to make donations automatic, transparent, and highly effective. It tracks donations accurately, provides clear on-chain proof of every contribution, and smoothly integrates with other OADA yield-generating strategies, ensuring your contributions make the greatest possible impact. #### [](https://optim-finance.gitbook.io/optim-finance/oada/unhcr-donation-module#yield-donation) Yield Donation You donate only the interest generated from your investments, never the original amount. This means you keep your assets and continue benefiting from future earnings, enabling long term support without permanently giving up your funds. #### [](https://optim-finance.gitbook.io/optim-finance/oada/unhcr-donation-module#nft-based-transparency) NFT Based Transparency Your donations are tracked through unique Impact Certificates, securely recorded on the blockchain. These certificates offer transparent, tamper proof verification of your contributions, linking the clarity of blockchain technology directly to tangible humanitarian outcomes. #### [](https://optim-finance.gitbook.io/optim-finance/oada/unhcr-donation-module#scalable-and-extensible) Scalable & Extensible The module is designed to support multiple yield sources and types of assets. Soon, it will include stablecoin contributions like OUSD and expand to incorporate a variety of liquidity farming strategies, providing more opportunities for impactful giving. #### [](https://optim-finance.gitbook.io/optim-finance/oada/unhcr-donation-module#operational-oversight) Operational Oversight Switzerland for UNHCR carefully manages and directs all donated funds toward pressing humanitarian projects. Regular quarterly reviews and detailed impact reports guarantee transparency and effective use of every donation. [](https://optim-finance.gitbook.io/optim-finance/oada/unhcr-donation-module#a-new-approach-to-giving) A New Approach to Giving ------------------------------------------------------------------------------------------------------------------------------------ The UNHCR Donation Module showcases how decentralized finance can sustainably fund critical humanitarian efforts with increased trust and transparency. By allowing contributors to preserve their original investments and donate only earned interest, the module introduces a revolutionary way of supporting humanitarian causes. This innovative approach aligns impactful generosity with the ongoing preservation of user assets, furthering Cardano’s mission of creating inclusive and practical real world solutions. [PreviousStaking AMO](https://optim-finance.gitbook.io/optim-finance/oada/amos/staking-amo) [NextAutomated Yield Donation Protocol](https://optim-finance.gitbook.io/optim-finance/oada/unhcr-donation-module/automated-yield-donation-protocol) Last updated 7 months ago --- # Junior Tranche Loss Absorption | Optim Finance As the risk bearing tranche of the OADA System, sOADA value fluctuates based on: * All loan interest & liquidation PnL accruing to sOADA * All losses from liquidations absorbed by sOADA If the system has 6M ADA TVL, with 5M ADA backing sOADA then the maximum tolerable loss before the OADA peg is endangered is 5M ADA. This is a classic senior/junior capital structure. However, the system's Maximum Market Size doesn't allow for pushing towards these limits. [PreviousLiquidations](https://optim-finance.gitbook.io/optim-finance/oada-v2/liquidations) [NextOADA Peg Stability](https://optim-finance.gitbook.io/optim-finance/oada-v2/oada-peg-stability) Last updated 10 days ago --- # AMOs | Optim Finance ![](https://optim-finance.gitbook.io/optim-finance/~gitbook/image?url=https%3A%2F%2F424855560-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252F6BTbmCnORqGhhdMDWeQO%252Fuploads%252FefWM41lYPOPDIYjsX7o8%252FOptim.png%3Falt%3Dmedia%26token%3Dd3751645-b011-4904-804e-706ad01b8840&width=768&dpr=4&quality=100&sign=77269c8d&sv=2) The OADA system utilizes multiple **AMO**s \[Algorithmic Market Operations\] to generate system profits. AMOs autonomously mint and burn OADA to execute a programmed strategy. Allocation of system reserves and invocation of the majority of AMOs requires a signature of one of the system operators referred to as a **Controller**. Controllers are bots that perform system operations. It is a governance-delegated position, that possesses no custody of the assets, in all situations aside from a potential system exploitation. [](https://optim-finance.gitbook.io/optim-finance/oada/amos#splash-dex-amo) Splash DEX AMO ----------------------------------------------------------------------------------------------- The Splash DEX AMO is a key piece of the OADA system that maintains the OADA/ADA peg and generates system profits. The DEX AMO is able buy, sell, mint, and burn OADA, as well as add and remove liquidity from the pool. When users buy and sell OADA in the pool, the DEX AMO algorithmically executes these operations to regain stable peg and profit from the arbitrage opportunity. [](https://optim-finance.gitbook.io/optim-finance/oada/amos#stake-auction-amo) Stake Auction AMO ----------------------------------------------------------------------------------------------------- The Stake Auction AMO handles all operations related to ADA stake. At the end of each Epoch, the OADA system un-deploys all ADA reserves from other strategies and deploys them into the Stake Auction. At this point, bids that were made on the stake power of ADA reserves throughout the epoch are filled and the ADA is staked to the bid owner's key. [](https://optim-finance.gitbook.io/optim-finance/oada/amos#staking-amo) Staking AMO ----------------------------------------------------------------------------------------- The Staking AMO handles the accounting of the exchange rate of sOADA to OADA. As the other AMOs provide yield to the system, they funnel into the Staking AMO where it distributes profits to sOADA holders. The Staking AMO accounts for the DAO fee cut, currently set to 20% of total system profits. * * * Other AMOs are planned for future developments such as the Lending AMO, Borrow AMO, and more. [PreviousEpoch Stake Auction](https://optim-finance.gitbook.io/optim-finance/oada/user-guides/epoch-stake-auction) [NextSplash DEX AMO](https://optim-finance.gitbook.io/optim-finance/oada/amos/splash-dex-amo) Last updated 1 year ago * [Splash DEX AMO](https://optim-finance.gitbook.io/optim-finance/oada/amos#splash-dex-amo) * [Stake Auction AMO](https://optim-finance.gitbook.io/optim-finance/oada/amos#stake-auction-amo) * [Staking AMO](https://optim-finance.gitbook.io/optim-finance/oada/amos#staking-amo) --- # Risk Framework | Optim Finance Below is a structured risk framework of the OADA V2 system [](https://optim-finance.gitbook.io/optim-finance/oada-v2/risk-framework#credit-and-liquidation-risk) Credit & Liquidation Risk ------------------------------------------------------------------------------------------------------------------------------------ Risk: Collateral crashes too fast for auction to clear at profitable levels, sOADA accrues losses. Mitigants: * Conservative LTV settings * Exponential price decay model encourages early arbitrage * Dutch auctions sell over 24 hours * Many assets initially restricted (SNEK only) [](https://optim-finance.gitbook.io/optim-finance/oada-v2/risk-framework#refinancing-dos-risk) Refinancing DOS Risk ------------------------------------------------------------------------------------------------------------------------ Risk: Attackers borrow during the refinancing window to block large borrowers. Mitigants: * Automatic credit expansion * Whitelisted lending caps per asset * Reserve capacity for manual interventions * ODAO treasury backstop * PSBT based bespoke refinancing [](https://optim-finance.gitbook.io/optim-finance/oada-v2/risk-framework#peg-deviation-liquidity-risk) Peg Deviation / Liquidity Risk ------------------------------------------------------------------------------------------------------------------------------------------ Risk: Too much OADA supply relative to ADA reserves making OADA trade below 1 ADA. Mitigants: * Ability to force contraction (no refinancing) * Max loan durations guarantee bound on deleveraging timeline * Strong arbitrage incentives when OADA breaks peg [](https://optim-finance.gitbook.io/optim-finance/oada-v2/risk-framework#governance-sequencer-risk) Governance / Sequencer Risk ------------------------------------------------------------------------------------------------------------------------------------ Risk: Interest rates, caps, and parameters controlled off-chain; governance coordination failures. Mitigants: * Only ODAO governance may change core parameters * Sequencer cannot seize collateral * Multisig controlled upgrades [](https://optim-finance.gitbook.io/optim-finance/oada-v2/risk-framework#smart-contract-risk) Smart-Contract Risk ---------------------------------------------------------------------------------------------------------------------- * FluidTokens V3 lending architecture * Complex AMO logic (DEX, liquidations) [PreviousManual Refinancing](https://optim-finance.gitbook.io/optim-finance/oada-v2/manual-refinancing) [NextSummary](https://optim-finance.gitbook.io/optim-finance/oada-v2/summary) Last updated 10 days ago * [Credit & Liquidation Risk](https://optim-finance.gitbook.io/optim-finance/oada-v2/risk-framework#credit-and-liquidation-risk) * [Refinancing DOS Risk](https://optim-finance.gitbook.io/optim-finance/oada-v2/risk-framework#refinancing-dos-risk) * [Peg Deviation / Liquidity Risk](https://optim-finance.gitbook.io/optim-finance/oada-v2/risk-framework#peg-deviation-liquidity-risk) * [Governance / Sequencer Risk](https://optim-finance.gitbook.io/optim-finance/oada-v2/risk-framework#governance-sequencer-risk) * [Smart-Contract Risk](https://optim-finance.gitbook.io/optim-finance/oada-v2/risk-framework#smart-contract-risk) --- # Governance | Optim Finance [](https://optim-finance.gitbook.io/optim-finance/oada/governance#soul-token) Soul Token --------------------------------------------------------------------------------------------- The OADA system is governed by the ODAO, via the use of a Soul Token that can upgrade it in any way necessary. This Soul Token is currently held in a multi-signature wallet managed by members of Optim Labs and prominent, trusted community contributors to the Optim DAO. The intention is to eventually transfer this governance control to a fully decentralized system once a suitable solution is developed for the protocol's needs. [PreviousFuture Extensions](https://optim-finance.gitbook.io/optim-finance/oada/unhcr-donation-module/future-extensions) [NextResources](https://optim-finance.gitbook.io/optim-finance/oada/resources) Last updated 1 year ago --- # Transaction Chaining | Optim Finance ![](https://optim-finance.gitbook.io/optim-finance/~gitbook/image?url=https%3A%2F%2F424855560-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252F6BTbmCnORqGhhdMDWeQO%252Fuploads%252FcfSYWNdntadNcRUyjfC9%252Fimage.png%3Falt%3Dmedia%26token%3Dd36a95fc-116d-47d2-8cac-c7ab204d5195&width=768&dpr=4&quality=100&sign=4b91bae0&sv=2) Concurrency, and the solutions around it, has been a hotly debated and contentious topic within the Cardano community and beyond. In this article, we want to take a closer look at **transaction chaining**, the logic Optim Finance’s upcoming [Liquidity Bonds](https://t.co/cwUcJ132CN) will use to scale without the need for batching and without the many problems it presents. You can find more information on **Transaction Chaining on Cardano** and Optim's approach below, or in the following [Technical Article](https://optim-labs.medium.com/transaction-chaining-on-cardano-cdc38c1c73dc) , which [was recently recommended by Charles Hoskinson](https://twitter.com/IOHK_Charles/status/1571692038403330050?s=20&t=2_caKA0F15PMXqDKBpW-mQ) , IOHK CEO and co-founder. [PreviousProtocol Profits](https://optim-finance.gitbook.io/optim-finance/governance/protocol-profits) [NextBackground](https://optim-finance.gitbook.io/optim-finance/guides/transaction-chaining/background) Last updated 1 year ago --- # Introduction | Optim Finance The Optim DAO Stack is a next generation toolkit purpose built to help decentralized autonomous organizations succeed on the Cardano blockchain. DAOs rely on transparent, rules based governance to make collective decisions and guide their long term strategies. However, as these organizations grow in complexity and the broader blockchain ecosystem evolves, traditional DAO tools often struggle to keep up. Many existing solutions rely on outdated technology, follow rigid monolithic frameworks, and offer limited room for customization. This can stifle innovation, reduce efficiency, and ultimately limit a DAO’s ability to respond dynamically to the ever-changing landscape of decentralized finance, community coordination, and protocol development. The Optim DAO Stack changes all of this by adopting cutting-edge technologies and methodologies: **In a nutshell:** * **Modular design:** Seamlessly integrate the governance components that matter most to your DAO. * **Future-proof foundation:** Developed with the latest Cardano technologies (Plutus V3 and Aiken) to ensure scalability, efficiency, and long-term viability. * **Open-source & transparent:** Built out in the open, inviting community participation, expert audits, and continuous improvement. As Cardano continues to evolve into one of the most advanced and sustainable blockchains, the Optim DAO Stack ensures that DAOs operating within its ecosystem remain at the cutting edge of decentralized governance. By combining technical excellence with a flexible, community driven ethos, the Optim DAO Stack lays the groundwork for a new era of DAO autonomy, innovation, and inclusivity. [PreviousOPTIMiz Conversion](https://optim-finance.gitbook.io/optim-finance/guides/optimiz-conversion) [NextDesign Principles](https://optim-finance.gitbook.io/optim-finance/odao-stack/design-principles) Last updated 1 year ago ---