The Obelisk
Last updated
Last updated
The Obelisk Engine is the protocol’s autonomous treasury management layer—designed to maintain balance between short-term performance and long-term sustainability. Integrated into every core component of the system, it governs staking, bonding, redemptions, fee dynamics, and treasury activity with precision and intent.
1. Dynamic Reward Calibration The engine continuously monitors protocol performance and market conditions to adjust staking and LP reward rates. This ensures rewards remain competitive, sustainable, and economically aligned with the health of the protocol.
2. Buyback and Burn Mechanisms During periods of surplus or strategic opportunity, the engine may deploy treasury funds to buy back $OBLSK from the market. All purchased tokens are permanently burned, reinforcing deflationary pressure and strengthening price integrity.
3. Adaptive Fee Structures Fees are not static. The Obelisk Engine adjusts protocol fees in real time—raising them to secure reserves during growth cycles, or lowering them to stimulate engagement during downtrends. This keeps user incentives and protocol sustainability in sync.
4. Strategic Treasury Allocation Obelisk’s treasury isn’t idle. The engine allocates capital toward high-value opportunities such as liquidity reinforcement, ecosystem expansion, or integration partnerships—while maintaining reserves for future protocol resilience.
The protocol operates on real-time data flows that inform dynamic adjustments to staking and LP incentives:
Staking rewards decrease proportionally as the number of stakers grows, ensuring consistent distribution without inflation.
LP rewards, on the other hand, increase relative to treasury growth and liquidity depth—creating a scalable and performance-driven model.
y: % allocated to LP rewards
x: current amount of $OBLSK staked
xmin: lower staking threshold
xmax: upper staking threshold
δ (delta): 0.01 (adjustment factor)
This formula governs how LP incentives are distributed based on protocol health, staked capital, and trading volume. The engine manages these variables autonomously to preserve balance between rewards and treasury security.
The Obelisk Engine is more than a treasury controller—it’s a system-wide allocator, optimizer, and stabilizer. It ensures that every function within the protocol serves a larger purpose: to accumulate value, reduce waste, and reward alignment without relying on emissions or inflation.
Through this mechanism, $OBLSK maintains a self-reinforcing flywheel—one that captures value in all market conditions and positions Obelisk as a sustainable force in DeFi.
