Opulous Combines OVAULT and OLOAN to Boost Liquidity

Opulous
6 min readFeb 6, 2024

We’re excited to share a significant update: OLOAN will be merged into OVAULT to provide one music pool, boosting liquidity and make it easier to navigate through the pool.

After careful consideration, the Opulous team has decided to merge our initial plans for OLOAN into OVAULT. This integration means we will no longer offer OLOAN as a standalone product.

This development is excellent news for our OVAULT holders, who will benefit from our extensive library of music catalogs and music advance deals, all while enjoying a stable APY of 10%.

Furthermore, this change will increase the liquidity in the pool, allowing users to access their rewards more frequently in each distribution cycle.

In this blog, we’ll cover:

  • The rationale behind the OVAULT update
  • What to anticipate next
  • Opulous Finance V2 and OPUL Integration
  • The future of OVAULT

Let’s get into it!

Why Update OVAULT?

We always put our community first, giving everyone the best and most optimal opportunities to participate in our products.

Merging OLOAN into OVAULT offers access to rewards from music catalogs and advances, enabling a unified pool, boosting liquidity, and increasing capital for unstaking.

OVAULT will now feature both music catalogs and music advance deals:

Music Catalogs: These are collections of popular and high-performing songs signed by Opulous on lifetime deals. The Opulous team selects these catalogs based on their potential for consistent revenue generation. The earnings from these music catalogs are then distributed back into OVAULT as rewards. Since they depend on music earnings, these rewards offer a variable APY of approximately 10%.

Music Advances: This feature provides artists with upfront capital based on predicted revenue determined by their current earnings. It is facilitated through our partnership with Ditto Music, an award-winning distribution company that supports over a million artists globally. Ditto Music repays Opulous the initial music advance over the year, along with a fixed interest rate of 10%.

Boosted Liquidity

This dual approach aims to ensure more stable earnings from our catalog deals, which offer variable APY, and to bolster APY stability with fixed-rate music advances whilst increasing overall liquidity in the pool, enabling more users to access their staked capital within each payment cycle.

Simply, this will stablise the overall APY and increase the liquidity for unstaking.

Here’s a look at how it works:

If we allocate $100K to music catalogs at a 10% rate, we aim to earn $10K over a year, or about $833 each month.

With music advances, when we provide $100K at the same 10% rate, we expect the same monthly return of $833. But there’s an advantage for the music advances: each month, we also get a portion of the initial $100K back. In a one-year deal, this means an extra $8,333.33 each month. Therefore, we’re effectively adding back $9,166.66 to the pool every month, boosting the liquidity for anyone wanting to unstake their USDC.

What does this mean for OVAULT holders?

This approach aims for steady returns and increases the money available each month. This means more of you can withdraw your investments whenever needed, enhancing your experience and making our platform more user-friendly and accessible.

Ultimately, this adjustment will lead to a more consistent return for OVAULT holders, and with increased liquidity, it ensures more users can unstake their rewards in each cycle, thereby improving the overall user experience and accessibility for stakers.

The Next Round Opens Soon!

Given the overwhelming demand and our initial pool selling out in less than two days, we’re thrilled to announce the next OVAULT round, scheduled for Thursday, February 8th, with a $100K raise limit.

You can get ready by connecting your wallet and completing your KYC here.

One of the most important features that has been widely requested by our community is the integration of our native OPUL token. We have good news, as this will arrive imminently in Opulous Finance V2.

Opulous Finance V2: OPUL Integration and Tickets

This update will introduce benefits for OPUL holders, such as priority unstaking from the pool options. This improvement is anchored in our Opulous Tickets system, which is already familiar to many in our community.

In the forthcoming system, you can stake OPUL on our platform, granting Opulous Tickets and an APY for your stake. Adding Opulous tickets to the queue will determine your priority for unstaking from our liquid staking pools. The more Tickets you have, the higher your queue priority.

But it doesn’t end there. Opulous collects a percentage of the rewards generated from the music deals. This is then converted to OPUL and added to the Opulous staking pool as APY rewards. So, with each completed cycle, more OPUL is converted for rewards!

For those holding Opulous Tickets on our Algorand platform, we will offer a bridge at the launch of Opulous Finance V2, ensuring a smooth transition of your Tickets to Arbitrum.

We recommend bridging your OPUL over to Arbitrum to fully utilize these updates. This will prepare you to seamlessly engage with our new system upon its release and ensure no one misses out!

Check out our guide on bridging your OPUL tokens over to Arbitrum here.

The future of OVAULT

Discover what you can expect as we develop OVAULT over the coming months:

Reward Boost: Exciting developments are on the horizon as we partner with a new DeFi collaborator native to Arbitrum, set to be unveiled soon. This partnership will introduce exclusive pools, allowing you to stake in OVAULT and earn enhanced, exclusive rewards.

MFT Bridge: We’re working closely with our partners at Messina to facilitate bridging our MFTs from Algorand to Arbitrum. This will give our MFT holders access to the rewards generated in the pool.

Open-Ended Pools: Advancing to the next phase, we will eliminate fixed rounds, transitioning to open-ended pools. This change allows for flexible deposits of any preferred amount by participants while implementing a limit informed by a dynamic APY. This adjustment ensures flexibility for users while maintaining attractive and sustainable rewards.

Deal Display: We will showcase the various deals incorporated into the pool, complete with their specific repayment schedules. This feature offers deeper insights into the potential returns from each deal.

Catalog Information: Detailed displays of acquired catalogs, their purchase prices, and the returns generated in the previous quarter will be available. This transparency aims to provide participants with a clear view of the performance and potential of their investments.

Total Pool Amount and Utilization: Information on the pool’s total funds and utilization rate will be readily accessible. This includes details on the liquidity available for the upcoming distribution, offering a clear picture of the pool’s financial health.

Liquidity Funds Usage: We will inform participants about how liquidity funds are allocated, and whether they’re being added to forthcoming distributions or utilized to finance new deals secured by Opulous. This ensures participants are well-informed on how their contributions are being leveraged to drive growth and returns.

Over the coming months, these improvements to OVAULT liquid staking are designed to bolster engagement, provide greater transparency, and optimize the rewards mechanism, reinforcing our commitment to delivering value and innovation within the Opulous ecosystem.

There you have it!

We’re thrilled about OVAULT’s future, which now features different music deals, including music catalogs and advances.

Remember that the upcoming staking round for OVAULT kicks off on Thursday, February 8th. Ensure you’re connected and have completed your KYC here.

Stay in the loop with all our important announcements and updates by joining our communities!

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Opulous

Opulous is building game-changing music products transforming how artists gain funding and connect with fans!