Loss-Mined Rewards (LMR)

Novel incentive mechanism for traders who lose big on BitPerp to get a portion of their losses reimbursed

Trading is inherently risky. Bitperp plans on distributing a large part of the token supply via retroactive airdrops of locked BTP with a call option to purchase the BTP at a discount.

Example: Let's say John opens a position of 1000 USDT on $MUBI at 1000x leverage. The current price of $MUBI is $0.1333. This position has a liquidation price of $0.13428. John gets liquidated shortly after opening the position. He has the opportunity to get a retroactive airdrop of locked BTP with a call option to unlock, giving him an opportunity to become a staker or pay a certain fee to cash out.

Instead of traditional emissions in the form of $BTP that could be immediately dumped into the market, liquidity is incentivized through $oBTP, which is the the option call version of $BTP. Essentially, someone with $oBTP in their possession can do three things with it:

1.) Hold $oBTP for autocompounding rewards

Thanks to our revolutionary tokenomics, users don't have to do anything with their bought or earned $oBTP. The underlying $BTP will be staked into the vault. The vault will use the underlying $BTP to vote, claim rewards, market buy more $BTP and increase the value of $oBTP by the same margin.

This is especially valuable in the high-gas environment of Ethereum. LPs can simply let their liquidity rewards accrue, confident that their $oBTP rewards are themselves farming more value for them.

This autocompounding rewards mechanism is explained in detail in the next section.

2.) Exercise the option and purchase $BTP 1:1 at a discount with $USDT

• example - current $oBTP discount is 70%. Trader A has 100 $oBTP tokens from emissions (let's say market price of $BTP is $1 for this example). He decides to exercise his option and redeem his $oBTP for $BTP. He will pay $30 in $USDT tokens, and receive 100 $BTP.

When exercising an $oBTP option, the “discount” paid upfront by a user is split 75/25.

75% goes to staked $BTP holders, 25% goes to the treasury.

3.) Convert $oBTP to max locked $BTP 1:1

If the user decides to convert their $oBTP to locked $BTP, there is no fee to do so. This entitles the user to begin earning vault yields with their BTP and earn massive real yields as a result of BitPerp's efficient fee and revenue generation mechanisms.