OVL is the settlement currency of the Overlay protocol. Users need OVL to enter positions on markets offered by the platform, and the PnL of their trades is paid out in OVL.
PCD holders will be able to propose and signal their support for governance proposals through the dedicated Snapshot page.
As the system progresses further, we plan to adopt progressively more decentralized governance solutions such as Gnosis Safe’s SafeSnap.
At a point in the future, PCD may decide to include OVL holders and/or OVL-ETH liquidity providers to Overlay Governance. PCD governs Overlay, that’s it.
The team will execute towards progressive decentralization. Our goal is to create a secure and usable protocol that reaches protocol-market fit. The ultimate goal is to remove any dependency from the founding team as soon as it is viable to do so.
Overlay solves the liquidity issue that occurs in some markets, and replaces it with a local inflation problem. Local in the sense of only occurring for individual profitable trades. This inflation problem is addressed by the protocol’s monetary policy.
The protocol charges user fees to execute a trade: a portion of that fee is burned to manage OVL supply, and the rest is sent to the community treasury. Fee model is subject to change via governance as it is an important lever the protocol can use to curb inflation.
ETH/USDC
Using the risk framework created by the core team, community members can suggest new markets via the “new markets” section in Overlay governance forum and discuss on Discord.
Everyday users who want a Uniswap-eque experience while taking leveraged positions.
Prices are fetched every 10 mins from the 1hr Uniswap TWAP (subject to change). Chainlink oracles and other oracles can also be used to bring in prices.