Dual-Token Model

Overview: Dual-Token Model OpenFi adopts a dual-token model to separate governance functions from reserve currency attributes:

• $OPEN: The core reserve asset token, issued by the treasury, with compounding yield capabilities and a floor price support mechanism.

• $NEC: The governance and incentive token, used for voting, accelerating staking reward release, and participating in market activities.

This model helps ensure the financial stability of the protocol while maintaining the decentralized operational efficiency of community governance.

$OPEN: Reserve Asset Token and Platform Ecosystem Token $OPEN is the core asset of the protocol and has the following characteristics:

• Backed by Treasury Assets: Each $OPEN token minted is backed by real assets, with an initial price anchored to 1 USDT.

• Non-pegged Floating Price: $OPEN is not pegged to fiat currencies. Its market price is influenced by supply and demand, with the floor price determined by the treasury assets.

• Automatic Compounding Yield: Through the Rebase model, users who stake $OPEN tokens receive stable compounding yields, with returns dynamically linked to protocol surplus.

• Protocol Profit Sources: Profits are derived from bond sales, LP fees, buyback price differences, etc., forming the source of Rebase distribution.

• Buyback and Burn Mechanism: If the market price declines, the protocol will automatically calculate and execute epochBurn to destroy tokens.

Issuance and Buyback Formulas:

• Issuance Formula: epochMint = (TWAP – IV) * supply * ICV * Discount

• Burn Formula: epochBurn = (TWAP – IV) * supply * DCV * Discount

Where:

• TWAP: Time-Weighted Average Price of the token

• IV: Initial Value (floor price)

• ICV/DCV: Inflation/Deflation Coefficients

This mechanism ensures that the issuance and burn of $OPEN are based on actual market operation data, preventing systemic risks.

$NEC: Community and Utility Token

$NEC is the community and utility token of the OpenFi protocol, with the following functions:

• Voting Rights: Holders can participate in DAO governance, determining protocol parameters and key proposals.

• Staking Acceleration: Users can consume $NEC to accelerate the release of their $OPEN staking rewards.

• Liquidity Guidance: Consumed $NEC will be injected into the NEC/USDT liquidity pool, enhancing market depth.

The total supply of $NEC is 100 million tokens, which will be distributed through community incentives, platform contributions, invitation rewards, and other methods.