OTC Systems

Key Concepts:

  1. Liquid Staked Tokens

  2. Arbitrage

  3. Financial Instrument Trading

  4. Asset Market Exposure


The LINQ LocQer empowers project owners to establish an Over-The-Counter (OTC) market for their projects. By opening a LINQ LocQer that accepts protocol token deposits, users can deposit their tokens to mint a Certificate of Deposit (an NFT), representing their staked position. These certificates enable holders to sell their tokens in a peer-to-peer manner or with escrow services on any major NFT marketplace, like any other NFT. A distinctive feature of these certificates is their potential to be yield-bearing, provided the project owner activates distribution. This capability facilitates the safe transfer of yield from one party to another, offering a unique approach to financial instrument trading and asset market exposure.


Jerry launches a new yield project named LONG. He configures a LINQ LocQer for $LONG, requiring users to deposit $LONG to mint a Certificate of Deposit. Jerry implements a 15-day time lock for depositors and allocates a significant amount of ETH for distribution over 30 days. He also introduces a 20% early withdrawal fee as an option for stakers seeking early exit.

Tim, a significant investor in $LONG, decides to sell his tokens. To avoid sell tax, minimize market impact, dodge the early withdrawal fee, and exit without social stigma, Tim opts to split his Certificate of Deposit into four parts, each representing 25% of his stake. He lists these certificates on OpenSea, each for 10 ETH, exposing his stake to a broader market and enhancing the likelihood of finding a buyer.

Joe, interested in increasing his $LONG exposure and attracted by the absence of buy tax and price impact, purchases Tim's NFTs on OpenSea. Post-purchase, Joe connects his wallet to the LINQ application, assuming control over the staked position. He now has the option to manage, merge, or relist these certificates, potentially at a higher price in anticipation of $LONG's value increase.

Benefits to Holders:

Holders can sell large positions without incurring market impact or sell taxes, uniquely offering their locked, staked positions to other buyers. Listing on global marketplaces increases visibility and the chance of finding a buyer.

Benefits to Project Owners:

This system reduces sell pressure, as it allows holders to offload positions without impacting chart performance. It also introduces a liquid staking system that removes trading supply from the open market, locking it into the OTC outlet.

Further Details:

The OTC functionality is a core component of any Token Shares LocQer deployed by developers. It is further enhanced when token distribution is activated, allowing certificates to earn yield even while listed for OTC sale. This advanced system represents a significant innovation in OTC and escrow platforms, providing both liquidity and financial flexibility to token holders and project owners alike.

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