Capital Flows

The flow of funds within the OADA system can be generally described as follows: During each epoch, the underlying ADA reserves are deployed into various yield-bearing Algorithmic Market Operations (AMO) strategies. These strategies are designed to maximize returns while minimizing risk. However, two hours before the staking rewards snapshot, the staking rights of these ADA reserves are auctioned off to the highest bidder through the Staking Auction. This ensures that the staking rewards are efficiently allocated to those who value them most.

Once the epoch boundary is reached, the ADA utilized in these strategies is redeployed back across the system’s various yield opportunities. This continuous cycle of deploying, auctioning, and redeploying ADA helps optimize the overall yield of the system while maintaining liquidity and stability. By leveraging the strategic sale of staking rights, the OADA system enhances its ability to generate returns for stakeholders while ensuring the integrity and efficiency of its operations.

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