Why Transmute

Introduction

Transmute is an oTOKEN redemption / unlocking platform where users can exit their oTOKEN positions for ETH without the need for any upfront capital to exercise the underlying option. To know more about oTOKENS, please refer the FAQ section.

Why do you need such a service?

Liquidity mining has come a long way from the early days of SNX farming to ve(3,3) based emissions recently. The DeFi ecosystem is maturing and builders have understood that giving free lunch isn't a sustainable way to grow and sustain their protocols.

A lot of protocols are going to move to oTOKEN model to incentivise their community and we are betting on the theory that a lot more will move towards more sustainable models.

Sustainable liquidity mining practices sometimes come at the cost of creating barriers to entry for certain participants of the DeFi space. If someone with a $1000 portfolio is providing liquidity in a 1000% APR pool, the weekly earnings would be $192.30 worth of illiquid oTOKENS. If the discount is 50%, the user would somehow come up with $96.15 each week to claim their rewards. For someone with a $1000 portfolio, this is not realistic and they would have to resort to lower APRs pools as they are priced out by the oTOKEN mechanism.