# What is $oA51?

### Overview <a href="#overview" id="overview"></a>

$oA51 is an options token within the FOO tokenomics system. It allows holders to purchase $A51 tokens at a discounted price, aligning the interests of farmers and token holders, ensuring more sustainable liquidity provision.

### Conversion Process <a href="#conversion-process" id="conversion-process"></a>

Users can convert their $oA51 tokens to $A51 at a discounted price by purchasing with $WETH. Initially, the discount starts at 50%, but this is something that $A51 holders would be able to vote to change in the future.

### Benefits of $oA51 <a href="#benefits-of-usdoa51" id="benefits-of-usdoa51"></a>

Offering $oA51 as a reward ensures:

* Reduced likelihood of farmers dumping $A51 rewards.
* Increased ownership for liquidity providers.
* Optimized protocol ownership over time.

**Example of $oA51 Conversion**

Suppose the price of $A51 is $100, and there is an option token, $oA51, that gives its holder the perpetual right to buy $A51 at 50% of the market price. The protocol issues 1 $oA51 to a farmer, Alice, who immediately exercises the option to buy 1 $A51 for $50 and sell it on a DEX for $100. The resulting gains and losses are as follows:

* The Protocol: -1 $A51, +$50
* The Farmer Alice: +$50
* The DEX LPs: +1 $A51, -$100

Compare this to regular liquidity mining where the farmer doesn’t pay anything to the protocol:

* The Protocol: -1 $A51
* The Farmer Alice: +$100
* The DEX LPs: +1 $A51, -$100

When option reward tokens are used in FOO, where the farmers are also the token LPs, the tally becomes:

* The Protocol: -1 $A51, +$50
* The Farmer-LP: +1 $A51, -$50

This means that as the farmers receive $oA51 rewards, they get the right to buy tokens from the protocol at a discount and increase their ownership. Over time, protocol ownership will shift away from holders who aren’t providing liquidity to those who are, optimizing protocol ownership.