# oLORE Redemption

Lore rewards users with options tokens, or oLORE.

oLORE is an ERC20 option token that can be redeemed, held or traded.

1 oLORE represents a 5%-50% discount on purchasing 1 LORE. The initial 5% discount will increase by 3.75% per week during the 90 day IFO period till it reaches 50%. Users can view the discount onchain by subtracting 10,000 by the `multiplier` read function value on the [Exercise ](https://scrollscan.com/address/0x9e864c08564506afda9a584b5388907b1dd67faa#readContract)contract. 

Example:

10,000 - 9,500 (multiplier) = 500

500 / 10,000 = 0.05 or a 5% discount

How does a user exercise oLORE?

**Redemption (assuming 50% discount).** If a user has 100 oLORE, they can pay 50 LORE worth of WETH to redeem 100 LORE. The effective profit for the user is 50 LORE of value. WETH premiums are paired with treasury LORE to deepen liquidity. WETH premiums will also be used for LORE buybacks.

{% hint style="info" %}
Note that APRs presented on Lore account for the cost of the $WETH premium.
{% endhint %}

### **Driving Sustainable Growth**  <a href="#driving-sustainable-growth" id="driving-sustainable-growth"></a>

Adopting oLORE allows us to route substantial fees to LORE stakers, promoting sustainable growth. Our oToken model is rooted in the belief that value should shift from short-term farmers to those committed to the protocol's long-term success. This approach ensures that even those who farm and dump indirectly support the token and deepen liquidity.


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