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STEP Reward Options
An incentive to Swap on the Step AMM pools
Step Reward Options refer to a Call Option with no price being used as an incentive reward for people to swap and provide liquidity on the Step AMM, first described here.
Claim rewards by exercising the option
The rewards function like a Call Option on the STEP price only available to those who have paid a fee during the last 5 days on the Step AMM or become an LP in the Step AMM.
Reward Options for Swaps
These Reward Options are airdropped on fee payers pro-rata to the amount of fees they have paid compared to everyone else who paid fees in that 5 day period. The reward option will be ITM ('In The Money') if the price of STEP is 10% above the price the option was minted at. After 15 days the option will expire worthless.
Reward Option Characteristics:
  • Valid for a 15 Day period
  • 150k STEP available per 5 day option period.
  • Minted at the Current STEP 24hr TWAP according to On-Chain Oracle Switchboard
  • Strike Price is set to +10% above the STEP 24hr TWAP price. This number is adjustable by Step team and will likely change
  • The Reward Option has no cost. It is airdropped on users proportional to their fees paid during the previous 15 day option period.
  • Reward Options are minted every 5 days
  • Reward Option will expire worthless after 15 days if not exercised.
  • If the price of the Reward Option has not met the Strike then it is 'OTM' (Out Of The Money) and not exercisable.
  • To Exercise the option, a user will need to have a balance of USDC
  • The USDC paid to exercise options is sent to the Step Treasury. From there it is used to buyback STEP to distribute rewards to xSTEP stakers. The intent here for the team is to place bids with the USDC below the exercise price thereby buying back more than is issued and placing a floor price on STEP.
Reward Options for LPs
These Reward Options are airdropped on LPs in the Step AMM for providing liquidity. They are paid proportional to a users average liquidity over a 5 day period. LP options have all the same characteristics as the above except:
  • 300k STEP available per 5 day option period
  • Weighted to a users average liquidity provided in LPs over a 5 day period measured in STEP
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