🪙oPAC

oPAC is a call option token for PAC that lets its holder purchase PAC at a discount to the market price. Unlike regular options, oPAC does not expire.

Pacman Finance will automatically adjust the discount of oPAC based on these parameters to ensure it is reflective of the current protocol and market:

• Market Volatility of PAC

• Amount of outstanding oPAC token

• Emissions of PAC in each gauge

• Diluted Market Cap

Why oPAC

Liquidity mining has become a popular method for bootstrapping liquidity in decentralized exchanges and lending protocols. In this method, the protocol offers token incentives to people who provide liquidity. However, the liquidity incentivized in this way is often short-term and profit-driven, with farmers immediately dumping the reward tokens.

How to get oPAC

oPAC is given to Pacman liquidity providers as an incentive. Provide liquidity on Pacman and stake in gauges to receive oPAC incentives.

• Stake LP tokens in gauges

• provide funds in the lending protocol

• Participate in governance to receive oPAC incentives.

How to use oPAC

You can use oPAC to buy back PAC at a discount. Visit the oPAC page on the Pacman website.

How to determine the Strike Price

Strike Price = PAC Price * (1 - Discount Rate)

Here is an example：

PAC Price = 1 ETH, Discount Rate = 60%, Strike Price = 0.4 ETH

The higher the discount rate, the better the price user can use as the strike price, and the more benefits you can get.

what are the factors that influence Discount Rate?

Discount Rate = B(x) + L(x)

Users who receive a Genesis NFT during the VeIDO will be eligible for a higher Base Discount Rate during the first two epochs.

When the PAC token price rises (i.e., the PAC token TWAP price increases by more than 10% in two consecutive epochs), users are more likely to hold onto their option tokens. The protocol responds by increasing the B(x) value, which in turn lowers the strike price for users.

When Treasury revenue keeps rising, the system will adjust the value and buy back the circulating PAC token.

ValueLp represents the USD value of the LP tokens (PAC-ETH and PAC-USDC) that a user has staked in the protocol.

Lock Time represents the asset locking time of user.

Weight is the weight of each user

Lock Time.avg calc at Day

L(x) is a cubic function of Weight

Convert oPAC to vePAC

In order to incentivize more Pacman users to mint vePAC and receive the bonus from the protocol, The protocol will support a direct swap from oPAC to vePAC. This means that when a user swaps vePAC from oPAC, the protocol will use the same PAC ratio for oPAC (PAC CONVERT vePAC).

Attention: oPAC only supports the Create new vePAC NFT, it can not add more PAC tokens for existing vePAC NFT

Pacman will also support merging different vePAC tokens to minimize the cost of operations.