OZL token

It's a token that fulfills the ERC20 standard, created using a modified version of Open Zeppelin's ERC20 contract, and having as inspiration Aave's aTokens. More technical details of OZL as ERC20 here.

It's a rebase token where the pegged value is its total supply (to 100) instead of the price.

It can't be minted, created, earned nor burned. It gets allocated to users (through its rebasing mechanism) when sending ETH to any Account under their ownership. Each transfer represents a proportion of the total volume of the protocol, and this proportion would represent the amount of OZL tokens an user would have.

For example:

• User A has Account 1 and Account 2.

• User B has Account 3.

• User A sends 123.56 ETH to Account 1 and 51.3 ETH to Account 2.

• User B sends 86 ETH to their Account 3.

• Total volume of the protocol would be 260.86 ETH (123.56 + 51.3 + 86), where User A contributed with 174.86 ETH to that volume (or 67.03 %), and User B with 86 ETH or 32.97 %.

• Following these percentages, User A would have a balance of 67.03 OZL and User B 32.97.

Each OZL token represents an IOU to redeem an equal percentage amount of the protocol's revenue.

So if the protocol has an AUM of $1M and User B has 32.97 OZL, they could use their OZL balance to redeem up to $329,700. Once this redemption occurs, their OZL balance would rebase between all other holders, adding up once again to a total supply of 100.

The actual calculation of each user's OZL balance happens when calling the balanceOf() method, and it uses the Ozel Index as the key metric to keep the peg at 100.