oBERO is In the Money

Ensuring the Consistency of oBERO Conversion to BERO at the Floor Price The structural design of the bonding curve system, guaranteeing the perpetually elevated market price of BERO over the floor price, holds significant implications for the status of oBERO call options. As these options possess a strike price equivalent to the floor price and the BERO asset invariably maintains backing equivalent to its floor price in BGT, the oBERO call options are logically poised to perpetually remain "in the money."

This characteristic is further fortified by the diminished risk for purchasers when the market price closely approximates the floor price. This convergence towards the floor price serves to bolster the oBERO options' advantageous financial position. Buyers find it increasingly attractive to secure BERO near the floor price, capitalizing on the ability to employ it as collateral for borrowing BGT with minimal risk. This escalated demand for BERO consequently propels its market price upward, thereby preserving the "in the money" status of the oBERO call options.

The existence of oBERO call options introduces a more sustainable model for token emission when juxtaposed with conventional yield farming incentives. The call options are intrinsically predisposed to consistently remain "in the money" because 1 BERO is perpetually ≥ 1 BGT, maintaining a state of equilibrium. Furthermore, when the cost of acquiring BERO approaches 1 BGT, the acquisition assumes a near-risk-free aspect due to the borrowing mechanism. This facilitates accessible voting power for opportunistic participants, engendering an increase in the BERO price and consequently reinstating the "in the money" status of oBERO.

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