> For the complete documentation index, see [llms.txt](https://onchaintrade.gitbook.io/ot/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://onchaintrade.gitbook.io/ot/tokenomics/ot-and-vot.md).

# OT and vOT

#### OT is the utility token of OT protocol, which can be transferred and traded on DEXs, vOT is non-transferrable but comes with extended features such as voting, staking\&revenue distribution, redemption,etc.

#### Swap/Borrow/Trade to earn OT/vOT

Swap, borrow and perps trading are incentivized with reward in OT/vOT

#### Stake OSD to earn vOT

Liquidity providers provide liquidity by staking OSD in return for 50% perps trading fee distribution on a weekly basis, plus rewards in vOT.

| Incentive Type | Start time   | vOT reward per day | end time |
| -------------- | ------------ | ------------------ | -------- |
| OSD staking    | May 16, 2023 | 8000               |          |
| Trading        | May 16, 2023 | 10000              |          |
| Borrow         | May 16, 2023 | 2000               |          |

#### Conversion

Conversion is a process to convert your OT into vOT or vOT into OT, conversion of OT into vOT is instant, while converting vOT to OT takes at least 15 days with a penalty and maximum 180 days without penalty(100% vesting).

#### Redemption

Redemption is a process to burn your vOT holdings and get back your share of OT treasury. 20% of treasury is reserved for protocol development, 80% of treasury is available for redemption by vOT holders which requires the holder to burn vOT in return for his share of treasury. Redemption comes with a fee. Redemption will start after IFO investors are fully reimbursed. Reimbursement will happen after OT accumulated a sizable treasury of bluechip assets such as ETH, USDC, etc.

> *The amount of asset you can redeem = vOT/(OT circulating supply + vOT circulating supply - burnt vOT amount) \* (1-feeRate) \* Treasury*
>
> feeRate = max(0.5%, *vOT/(OT circulating supply + vOT circulating supply - OT\_locked\_in\_vOT\_conversion\_contract - burnt vOT amount))*

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