Staking AMO

The Staking AMO issues and manages sOTOKEN, the staked version of OTOKEN. It acts like a central accounting office for distributing profits and keeping track of how much yield sOTOKEN holders have earned.

Key Functions

sOTOKEN Issuance

When users stake their OTOKEN, the Staking AMO issues them sOTOKEN. This process effectively transforms OTOKEN into a yield bearing position. As the system generates profits from various AMOs (e.g., lending interest, trading fees, or staking rewards), sOTOKEN holders see their value grow proportionally.

Yield Accounting & Distribution

The Staking AMO aggregates the profits (or losses) from all active AMOs. When profits are realized, they’re reflected as an increase in sOTOKEN supply, meaning each holder’s share of total sOTOKEN now represents a larger claim on the system’s value. Over time, stakers benefit as the system grows more profitable, while also bearing the brunt of any downturns.

DAO Profits & Sustainability

Beyond rewarding stakers, the system can earmark a portion of profits for the DAO’s treasury. This revenue can support long term development, community grants, audits, or other initiatives that enhance the protocol’s sustainability and growth. By establishing a revenue channel for the DAO, the Staking AMO aligns the prosperity of the protocol with the community’s long term interests.

The Staking AMO turns the OToken Framework into a living, breathing ecosystem where risk takers (sOTOKEN holders) share the aggregated yield upside in exchange for helping absorb the downside if necessary. It provides a clear, transparent mechanism to reward active participants and fund ongoing governance and improvement efforts.