Role of oBSW in Biswap Ecosystem | Options to Profit

5 min readDec 1, 2023

The upcoming BSW Investment Pool is set to introduce plenty of new functionalities and earning opportunities for our vibrant crypto community. In this article, we delve into the intrinsic value of the oBSW, an exclusive staking reward, and offer insights into maximizing its potential to boost your profits. Furthermore, we will explore the profound impact of oBSW on the overarching Biswap ecosystem.

Note: all the numbers, percentages, and periods are conditional and may be changed with the BSW Investment Pool release or at the Biswap team’s discretion.

What’s oBSW?

oBSW — a point option credited to users in the BSW Investment Pool. Each oBSW is backed by an exchangeable BSW, stored in a separate contract. This concept is essential for the holistic Biswap ecosystem operation and serves as a way to support the Biswap POL (Protocol Owned Liquidity) balance. This model is crucial for maintaining BSW value on the market, liquidity, and rewards ensuring.

What are the Benefits & Utility of oBSW?

Exclusive access to the Real Yield Pool

Stake oBSW points into the Real Yield Pool to get USDT rewards within a 21-day staking period.

Up to 30% discount for BSW purchasing

Use oBSW points to get real BSW for USDT with up to a 30% discount. The number of oBSW points corresponds to the number of real BSW that users can buy for USDT.

Once you get your first oBSW to the BSW Investment Pool balance, you can use the maximum 30% discount to exchange it for BSW by paying USDT. However, in this case, you miss an opportunity to earn USDT stablecoins in the Real Yield Pool.

USDT Earn or Discount in the Real Yield Pool?

In case you decide to stake oBSW to the Real Yield pool and earn USDT, there’s also will be a choice for you to earn tokens within 21 days or use up to 30% discount, which will be linearly decreasing by 1.43% with each accrual of USDT rewards to the user’s balance. The reason for the specific percentage of 1.43% is derived from a simple calculation: divide 21 (staking period) by 30% (maximum discount), resulting in 1.428%, which is rounded up to 1.43%.

It is important to note that the option to stake oBSW to the Real Yield Pool does not exclude the option to purchase BSW at a discount. With each day of oBSW staking in the pool, the discount for purchasing BSW decreases linearly from 30% to 0% over 21 days. At any point during the oBSW staking in the BSW Investment Pool, it can be used to redeem BSW with the current discount. It is not possible to use a portion of oBSW; all oBSW functions apply to the entire amount of oBSW in your BSW Investment Pool balance.

At the end of the staking period, the discount will be 0%, and if you still decide to exchange your oBSW, the exchange will be at the full price (exchange of oBSW for BSW is made only for USDT tokens).

Example
How about we take a look at the sample for clarification? Here is an example of redeeming BSW after staking in the Real Yield Pool:

The user stakes oBSW in Real Yield for 15 days.
For instance, on the 15th day, the discount for the staked oBSW amounts to 15%.
On the 15th day, the user utilizes all staked oBSW to redeem BSW with the current discount for USDT.
The USDT earned during the 15 days of staking will be received automatically.

oBSW Burning Explained | BSW Contribution to POL

With the BSW Investment Pool, Biswap introduces its liquidity protocol, where the DeFi protocol manages its own liquidity. Biswap POL, the BSW/USDT liquidity pair owned by Biswap DEX, operates based on this model. The protocol earns LP rewards as a Liquidity Provider, generating income for the project, part of which supports Real Yield rewards.

For POL to function properly, this mechanism should be powered by tokens to replenish both the BSW and USDT sides of the liquidity pair. This is a moment where oBSW burning gets into the game.

When oBSW is burned, the excess amount of BSW becomes surplus collateral. The team will transfer such BSW to the POL. The processes of accruing and burning oBSW are parallel processes that do not affect each other. The mechanics of burning oBSW incentivize users to return to Biswap for maximum profit.

When Does oBSW Burn Happen?

oBSW burn occurs when certain conditions are met in the BSW Investment Pool and Real Yield Pool.

oBSW Burn in the BSW Investment Pool

oBSW burning in the BSW Investment Pool applies to:

oBSW that wasn’t staked to Real Yield Pool within 30 day
oBSW that wasn’t used for BSW purchasing at a discount in the BSW Investment Pool

After the user staked into the BSW Investment Pool, within the n-day period, the allocated oBSW will start to burn day by day according to the daily oBSW rewards distribution.

Example:

A user receives 10 oBSW per day.

10 oBSW, allocated on the 1st day, will be burned in 30 days (Day 30)
10 oBSW, allocated on the 2nd day, will be burned in 30 days (Day 31)
10 oBSW, allocated on the 3rd day, will be burned in 30 days (Day 32)

oBSW burning in the Real Yield Pool balance applies to:

all staked oBSW points that weren’t used in the Real Yield Pool. After a particular period these unused oBSW will be burned immediately, not gradually, as it works in the BSW Investment Pool balance.

Closing Words

oBSW is an exclusive reward for staking to the BSW Investment Pool. It is not a token, but at the same time, it is backed up with real BSW. The core goal of oBSW is an opportunity to choose the further way to profit: purchase BSW with a discount or earn USDT from the Real Yield Pool.

BSW Investment Pool’s upcoming release will enrich you with lots of opportunities! Exercise your strategy and management skills thanks to oBSW points. Select the most preferable option and enjoy profit in the way you choose!