USDY Chakra Pool: Distribution of USDY and OM Rewards

October 28, 2024

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If you participated in the USDY Chakra Pool, then you will receive USDY for your deposit and you are entitled to receive OM and ONDO rewards!

In this article, we'll outline the reward distribution schedules, clarify how the amounts were calculated, and explain how and when you can claim your tokens.

USDY Distribution

Participants who deposited USDC into the Chakra Pool will receive USDY for their deposits.

We have taken snapshots of the Chakra Pool on four occasions. The USDY amount is calculated for each participant based on their contribution and the price of USDY the day after the next snapshot occurs following their deposit. You will find your projected allocation on the MANTRA Zone page.

USDY token distribution will be staggered based on each snapshot. The staggered manner allows you to access USDY on MANTRA Chain as early as possible while adhering to certain restrictions under U.S. securities laws, which can require Ondo to take up to 50 days to mint the USDY.

We aim to complete all the USDY distributions by November 2024.

OM Rewards

As there is a total of 18,626,977.952 USDC TVL in the Chakra Pool, participants are eligible for a total of 1,777,776 OM. The OM rewards will vest linearly from the mainnet launch date until 1st February 2025.

OM rewards will be claimable from November 2024.

Base Rewards Calculation:

We will distribute 1,777,776 OM proportionally to each participant as follows:
1,777,776 OM * 1 / 18,626,977.952 = 0.0954 OM per 1 USDC deposited.

This means that each participant will receive base rewards equal to 0.0954 OM for every 1.00 USDC contributed to the pool. This will be distributed proportionally to each participant with no time consideration.

Time-Weighted Bonus Rewards Calculation:

Additionally, early participants are also eligible for a time-weighted bonus in addition to the base rewards described above.

This is calculated based on how long a participant's funds have been in the pool vs the full duration of the pool. The time-weighted amount is determined by multiplying each USDC contribution by the proportion of days spent in the pool (USDC*(Days in Pool/Max days 49)).

Based on this amount, if the time-weighted value of equivalent rewards exceeds the base rewards described above, an additional bonus is awarded equal to the difference between the base rewards and this time-weighted reward.

This additional reward will vary by participant depending upon the duration of the participant’s funds in the pool. The maximum time-weighted bonus rewards shall be 0.1531 OM per 1.00 USDC contributed. This means that the possible maximum rewards for early participants is 0.2485 OM per 1.00 USDC contributed.

Examples:

Example 1: participant contributes 1000 USDC on Day 1. Base rewards of 95.4 OM (1000*0.0954). Time-weighted bonus would be 100% of the max possible reward = 248.5 OM (1000*0.2485).

Therefore participant is eligible for 248.5 OM rewards.

Example 2: participant contributes 1000 USDC 4 days before the pool closes on 30th September. Base rewards of 95.4 OM (1000*0.0954).

Their time-weighted participation rate would be 7.45% meaning time weighted equivalent rewards would be 18.5 OM (1000*0.2485*0.0745), which is below the base rewards rate. Therefore this participant would be eligible for 95.4 OM rewards.

*time weighted rewards are calculated on precise time per transaction, these examples are approximations for illustration purposes only. Actual amounts may vary.