Orki Finance Economic Model

draft work in progress

Orki Finance Economic Model with Liquidity Protocol V2 Design

Core Design

Orki Finance’s model is built to generate sustainable, organic revenue through:

  • Interest from loans

  • Protocol utilization

  • Treasury growth

Inspired by OlympusDAO but with a differentiated approach, Orki does not bond user tokens directly. Instead, 15–25% of protocol revenue is bonded, meaning interest and fees generated from loans and utilization are reinvested into Protocol-Owned Liquidity (POL).

At the same time, Orki distributes $ORKI tokens to users as part of its equivalent revenue-sharing.


Why This Matters

  • User-Friendly: Users don’t need to bond assets to participate they earn $ORKI while the POL grows in the background.

  • Shared Upside: Revenue-backed POL strengthens TVL and enables buybacks.


Strategy

Pre-TGE

Focus: Treasury growth & TVL support

  • 75% → Stability Pool (SP) depositors, distributed proportionally by collateral demand

  • 25% → Protocol-Owned Liquidity (POL), supporting:

    • TVL expansion

    • Revenue growth via SPs and Velodrome LPs

Note: POL acts as both a liquidity buffer and a revenue engine minimizing reliance on rented liquidity.


Post-TGE

Focus: Token distribution, adoption, and expansion

  • 75% → Stability Pool depositors

  • 15% → POL

  • 10% → $ORKI buybacks chest

Buybacks will help offset initial unlocks from the airdrop, while POL will scale to new chains and opportunities approved by the community.

POL-to-FDV Dynamic Rule:

  • If Treasury > $ORKI FDV → POL stops receiving the 15% allocation

  • Instead, 25% Orki Finance revenue is redirected entirely to buybacks, switches back at parity.


Comparative Model: Orki vs. Liquity

Aspect
Liquity
Orki

Governance Token

Fully distributed - gov based

TGE - hybrid gov based

Revenue Allocation

25% BOLD→ Protocol Incentive Liquidity (PIL)

25% USDK→ Protocol-Owned Liquidity (POL)

Incentives

PIL + Forkanomics

PIL + Airdrop + POL + Buybacks

Type

Revenue based incentives + Forkanomics

TGE incentives+Revenue based incentives + Buybacks + POL


Advantages of Orki’s Approach

  • Revenue Recycling: Orki reinvests revenue directly into liquidity and growth strategies.

  • Flexibility: Buybacks and liquidity deployment executed via POL less reliance on inflationary incentives and liquidity renting.

  • Long-Term Alignment: POL revenue strengthens both treasury and token holder value.

  • Governance Input: $xORKI holders decide monthly whether to continue, pause, or redirect allocations.

  • Secondary Support: Buybacks provide an additional stabilizing mechanism for $ORKI and recycling for incentives due to fixed supply


Risks

  • Certain strategies require time-sensitive execution

  • Some strategies may underperform or fail

  • Ongoing management and smart contract risks


In short: Orki Finance is pioneering a revenue-backed, governance-driven model where liquidity, growth, and community incentives are aligned through POL and transparent allocation strategies or curators, positioning the protocol for sustainable expansion pre- and post-TGE.


Last updated

Revision created