Limited Composability

Initially, $OPLL is going to be an asset tradable only via the protocol-owned swap smart-contracts. This is required for the purposes of maintaining programmatic price appreciation as discussed above. Peer to peer transfers will be prohibited to avoid creation of a parallel “black market” of tokens where the $OPLL-ETH exchange rate may differ from the algorithmically enforced one. As a result, $OPLL will have a limited composability at genesis, pursuant to our strategic goals of capturing a significant market share first before allowing developers to build on top of $OPLL. These restrictions are temporary and are crucial for Opulence early development and adoption. Down the road, $OPLL will become a fully-decentralized asset with no limitations on the wallets it can be transferred to, and exchanges where it can be traded.

As proven by the repeated demise of reserve currency protocols and some stablecoins, even the most well-capitalized and trusted entities are subject to massive bank runs that can happen overnight. The recent example with UST, a Terra’s signature stablecoin, demonstrated the utter requirement for checks and balances in the system preventing such rapid and unsubstantiated exodus of investors from the protocol. What started as a natural mild correction and some investors taking their profits, transformed into a broad bloodbath making its waves on the entire crypto ecosystem and other blockchains. Should Terra have had restrictions in place limiting how much UST can be liquidated within 24 hours, among many other possible solutions, the disaster could have been averted.