Relationship Between Token, oTokens, and ovTokens

The following examples are user flows using GMX vault as an example.

Example Token Flow for GMX Deposits at Time t

  • User A deposits 1 GMX

  • Origami mints 1 oGMX and stores it in the vault

  • Origami sends the deposited 1 GMX to the staking contract to earn yield

  • Origami mints 0.90 ovGMX (assuming current reservePerShare = 1.11)

  • Origami sends 0.90 ovGMX to User A

Example Token Flow for GMX Redemption at Time t+1 (Fees ignored for simplicity)

  • User A sends 0.90 ovGMX to Origami

  • Origami burns 0.90 ovGMX in exchange for 1.17 oGMX (current reservePerShare = 1.30)

  • Origami burns 1.17 oGMX to withdraw 1.17 GMX from the oGMX vault

  • Origami sends 1.17 GMX to User A (a 17% return on the original deposit)

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