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Ostium announced the second phase of compensation plan: providing USDC installments and equity conversion methods
Ostium announced changes to the design of the second phase loss compensation mechanism for liquidity providers (OLP). This mechanism is especially applicable to users whose losses exceed 1,000 USDC and have not adopted Convenience Allocation. It includes two compensation methods: <br />
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Option A (USDC is paid in stages): The compensation funds come from two parts-assets that have been recovered and may be recovered in the future (the allocation part in the first stage needs to be deducted and divided in proportion), and a fixed share of Ostium protocol and Gateway operating income (the initial stage is 50% of the opening fee). In addition, revenue sharing or incentive plans with potential partners may be involved. <br />
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Option B (Ostium Labs Equity Swap): Users who meet the securities compliance conditions can choose to convert part of the outstanding losses into Ostium Labs equity in subsequent pricing rounds of financing. The specific proportion is determined based on the valuation of the financing round.