OolongSwap and PCV— Revealing Our 100 -Years Oolong Plan

2 min readNov 3, 2021

After months of buidling, OolongSwap had launch successfully on Boba Mainnet yesterday (November 3rd). Just when you thought we won’t be releasing any news for a while, we are here to present to you all, OolongSwap and its meticulously designed Protocol Controlled Value (PCV)— in hope and effort to have OolongSwap around for at least another 100 years — TADAA 🎉

TL;DR

Yes, we sound crazy and we dream big
PCV are value (assets) owned/controlled by the protocol
With PCV, Oolong no longer needs to “rent” liquidity from users
PCV also helps to avoid token price manipulation and pool volatility
PCV therefore granted Oolong the ability to have long lasting liquidity for major tokens, especially $OLO (Oolong’s native token)
Oolong then become a project with thick “cash-reserve”
Now we have brewed an immortalized $OLO! Long live $OLO💎

What is PCV?

Protocol Controlled Value (PCV) is a sub-category of Total Value Locked (TVL) that is owned by the protocol and not withdraw-able by users. A common example of PCV is DAO treasury.

How Does PCV Benefit Oolong?

At the basic level, PCV enables a protocol to be “thick”, and create better value capturing for its token as the protocol grows, similar to traditional companies having a sizable cash reserve.

Oolong being a DEX, is especially well positioned to own it’s own liquidity through PCV. This fundamentally transforms the business model of Oolong as a DEX. While existing DEXs need to borrow liquidity from LPs at high interest rates, Oolong can grow to own liquidity on it’s own DEX as time progresses. This is especially useful for the protocol’s own token, $OLO. By owning a majority of our own token’s liquidity instead of renting from LPs, we are able to:

reduce the volitility of the liquidity pool
reduce potential price manipulation
increase token holder confidence know fully well the PCV is there to guarrentee liquidity for Oolong.

How Does Oolong Grow Its PCV?

Oolong can grows it’s PCV through many different sources, some examples are:

A portion of the exchange swap fees
Bonding
Yielding strategies (e.g lending interest, farming yields)
Asset value appreciation

The beauty of PCV is all of the above can be done trustlessly on-chain.

What Will Oolong Do With PCV?

In the long run this would be for governance to decide. Initially PCV will be focused on providing liquidity for Oolong Token and other major LP pairs.