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opxVELO

Tokenized Weight of the OpenX Project's veVELO Position
opxVELO token address: 0xc38464250F51123078BBd7eA574E185F6623d037
opxVELO reserve address: 0xa7ef8b87451694162374b7467d3d7e1981563513
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Collateralization

The collateralization model is unique to veVELO mechanics. It ensures that no opxVELO can ultimately come into existence without being over-collateralized, but also involves strategies that include locking value. This under-collateralizes the circulating supply until returns - which are structured to outperform the target APR due to these mechanics - replenish the liquid backstop.
A majority of VELO is vote-escrowed and thus illiquid, meaning it cannot preserve the peg. This however will be used to accumulate a basket of assets for the liquid backstop. veVELO veNFTs receive rebases, increasing the VELO to opxVELO collateralization rate; only note that this VELO is returned to veNFT, max-locked, and thus cannot be counted as part of the backstop.
There is no max supply of opxVELO, but minting can be paused if necessary. No opxVELO enters circulation without 1 VELO being permanently bonded to our project. opxVELO is removed from circulation when diluted (under peg) for the cost of < 1 VELO using the liquid backstop.
Our project farms VELO to add as collateral for opxVELO without minting additional opxVELO. The project uses excess votes, when available, to acquire a basket of assets for the liquid reserve, recycling this value within the ecosystem by purchasing spot VELO, increasing collateralization.
This allows the tokenized value of the OpenX's Project veVELO position to be and remain liquid.
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1 VELO will always be convertible for 1 opxVELO, regardless of either's spot market price.
opxVELO is never exchangeable for VELO except via exchange on the spot market.
This process is irreversible. Minting opxVELO is trustless and permissionless.