OVL

OVL is the native token of Overlay Protocol. It is a BEP-20 token. OVL serves a dual purpose — it powers the protocol's internal accounting mechanics and enables participation in DAO governance.

Token Details

Ticker	OVL
Initial Supply	88,888,888

Building Position

To enter a position, a user of Overlay Protocol uses USDT as collateral/margin into the Overlay smart contract. A user can leverage this collateral to take a position on either side of any market offered by Overlay.

On closing a position, the outcome may be profitable, unprofitable, or at break-even. If the position is profitable, the trader receives PnL in USDT equivalent to the delta difference of the market between build and unwind.

If the position is unprofitable, the loss is deducted from the USDT collateral that was posted to the position.

Behind the scenes, the protocol continues to use OVL as its internal balancing mechanism, adjusting supply according to the system's accounting rules to reflect profits and losses across markets.

No adjustments are required when a position is closed at break-even.

Supply

Total supply of OVL equals 88,888,888. The OVL supply, by function, is dynamic. Thus, OVL is dynamically minted and burned by the smart contracts when positions are unwound by users.

Last updated on Jan 2, 2025