Ownership Tokens (OTs)

Ownership tokens represent your locked position on a given Future. OTs are the proof of ownership of the assets you have deposited. They are not linked to any specific period, but rather to the Future itself - no matter when the deposit was made. When you redeem your funds these OTs get burned in exchange for the underlying you will receive.

Use Cases for OTs

• Buying Fixed Rates Income

  Unreal allows users to purchase discounted Ownership Tokens through AMMs and earn a fixed rate determined by the discounted value of the purchase.

• Earn Trading Fees without Impermanent Loss

  Users who are looking to capitalize on AMM trading fees can opt to provide liquidity on Ownership Token AMM pairs and not have to worry about impermanent loss.

  Because the price of Ownership tokens converges to the value of the underlying asset till eventually reaching a 1:1 value, if a user provides liquidity to the AMM and redeems at maturity all assets when withdrawn are of the same value.

• Capital Efficiency

  ‌Users who want to earn the variable interest gain of a specific asset (such as USDC or DAI) but want access to their capital to further utilize their assets elsewhere can choose to sell their Ownership tokens at a discount to gain capital efficiency.

• Arbitrage Fixed Rates and Variable Rates

  For sophisticated traders who observe the discounted trading value of Ownership tokens and the premium trading value of yield tokens, they can take advantage of the gaps between these two traits by minting and trading.

• Trade between different Yield Types and Rates

  Traders who want to enter and exit various fixed and variable yield rates can easily do so due to the two liquid markets Unreal provides for Ownership and Yield Tokens. This allows users who change sentiments around the interest rate market to quickly enter a fixed rate market for hedging or the latter depending on how they feel the market outlook will be in the coming months or year.

• Arbitrage without Carry Risk

  Traders with specific trading strategies can profit off the basis point growth of an asset without carry risk. If Ownership Tokens for DAI were trading at 150 Basis Points with 7 days left till maturity. A trader can take on that position, and carry it to redemption with no risk.

• Fixed Rate Yield Ladders

  ‌A Fixed Rate Yield Ladder product can provide users with continual liquidity as it continues to compound different proportions of a user's assets into various/different terms. At the end of a term period, the assets would automatically roll over to the next subsequent set fixed rate position unless the user chooses to withdraw. This provides users with more frequent instances of liquidity should they need the capital.

• Ownership Protected Products

  Products that provide liquidity based on the ownership tokens and liquidate their position at the end of the term to gain the fixed rate interest with zero risk.