3.3 Staking Contract

In Odyssey, the core design of the pledge sales contract is to maintain the stability of ODY value, and this goal is achieved through the value support mechanism with USDT. The pledge operation method obtained by participants is dynamic; the pledge contract is divided into "bond pledge" and "single currency pledge"

These two strategies of flexible and automatic adjustment of pledges not only maintain the value support between USDT, pledges and ODY. When bond pledges become overheated, the EM smart coin issuance module will automatically activate and stop selling bond pledges. Instead, single-coin staking is enabled, and participants need to purchase ODY in the Swap pool for single-coin staking. The EM smart coin issuance module allows Odyssey to obtain commission income from the market. Whether it is inflation (price increases) or deflation (price decreases), this self-regulatory mechanism can effectively respond to market changes and enhance its overall economic stability.

ODY token

If participants want to obtain ODY, there are only two ways to obtain it. The first method is to purchase bond pledges and obtain ODY tokens through the casting of pledge cycles. The second way to obtain it is to purchase ODY sold by other users in the Swap pool. The RBS market value stabilization module will monitor the system every 6 hours. When the currency price rises or falls by 7.5% to 12%, the treasury will automatically sell and buy back to destroy the stable ODY market value.

**Benefits of ODY tokens to the protocol:

ODY-USDT trading pair has massive liquidity;

ODY-USDT liquidity is positively related to ODY price;

The more you pledge, the more ODY you get, and the more stable the ODY price is;

Sell ​​ODY to obtain USDT directly in the Odyssey cross-chain pool, destroying and accelerating deflation;

The higher the return for participants holding ODY, the stronger the incentive to start staking and the stronger the liquidity;

**Benefits of Liquidity Tokens to the Protocol:

Represents the pledge share: When users deposit assets into liquidity pools (such as Uniswap, PancakeSwap and other AMM platforms), they will obtain corresponding liquidity tokens (such as UNI-V2,

CAKE-LP). These tokens are essentially "certificates" that prove how much funds the user has provided and have the right to withdraw the assets in the pool in proportion.

Automated Market Maker (AMM) Core: The liquidity pool enables instant exchange of trading pairs through the assets deposited by users, while the token quantifies the contribution proportion of each provider.

Transaction fee sharing: Liquidity providers (LP) obtain the transaction fees generated in the pool in proportion by holding liquidity tokens (for example, Uniswap charges a 0.3% fee, which is distributed according to the LP share).

Staking incentives: Users can pledge liquidity tokens to participate in the liquidity algorithm and earn additional token income. This mechanism attracts more liquidity through the token economic model.

Voting rights: Giving the governance token ODY gives holders the right to participate in protocol governance, such as adjusting handling rates or modifying pool parameters.

As collateral: Liquidity tokens can be used as collateral to lend funds in other DeFi protocols (such as Aave, Compound) to improve fund utilization.

Nested income: For example, deposit ODY tokens into aggregators such as Yearn to further optimize income.

Liquidity Tokens are a core tool in decentralized finance (DeFi). They are mainly used to incentivize users to provide liquidity to the trading pool and represent the provider's ownership share of the capital pool. Its specific function is as shown in the figure above. We can also clearly understand the stability and reliability that dual-token liquidity brings to Odyssey through the following logic.

Providing liquidity: Users deposit assets (such as USDT) into the ODY liquidity pool and obtain ODY LP tokens (representing liquidity shares).

1. Single currency pledge: pledge ODY tokens and obtain value-added ODY according to the pledge amount and time coefficient.

2. Obtain ODY rewards: The protocol allocates ODY tokens according to pledges (such as fixed release every day) to reward users for providing liquidity.

3. Governance cycle: Users holding ODY can participate in voting (such as adjusting algorithmic interest rates, pledge weights, etc.), affecting the protocol rules and forming a closed loop.

4. Closed loop of income: ODY LP tokens also earn transaction fees (from the liquidity pool),

ODY can be sold or pledged twice.

Advantages of ODY token model:

ODY: governance + incentives, regulating the direction of ecological development.

Pledge calculation:

Users provide liquidity to the ODY trading pool (such as ODY/USDT) → obtain ODY LP tokens; ODY LP automatically earns transaction fees (real-time distribution); pledge ODY to the algorithm contract → calculate the algorithm weight according to the pledge formula.

Staking formula: Basic pledge = pledged ODY quantity × time coefficient

(Example: time coefficient=1+0.01×number of pledge days)

Distribute ODY rewards according to the pledge ratio

ODY is used for protocol governance voting (adjust parameters such as: handling rate/algorithm reward);

ODY can flow into the exchange for trading, forming a closed loop;

ODY can be pledged twice to obtain protocol income dividends;

Pledge decay: Long-term pledges receive a time coefficient bonus;

Dynamic release: ODY rewards are linearly unlocked to prevent selling pressure;

Governance checks and balances: Major decisions require a majority vote of ODY stakers;

This framework realizes the three-ring coupling of liquidity provision, pledge algorithm, and governance decision-making, and builds a self-reinforced DeFi3.0 economic system through the ODY token model.