oCVGX is in the Money

How can we be sure that oCVGX will always be converted to CVGX at its floor price?

The bonding curve system's design, which ensures that the market price of CVGX never falls below the floor price, has implications for the oCVGX call options. Since the strike price for these options is the floor price, and the CVGX asset is always backed by its floor price worth of 1 ETH, the oCVGX options should theoretically always be in the money.

The reduced risk for buyers when the market price is near the floor price further reinforces this characteristic. As buyers find it more attractive to purchase CVGX near the floor price, knowing that they can lock it as collateral and borrow ETH against it with minimal risk, demand for CVGX increases. This demand, in turn, pushes the market price up, keeping the oCVGX options in the money.

The oCVGX call options present a more sustainable token emission model when compared to traditional yield farm incentives. The call options are almost guaranteed to always be in the money because 1 CVGX >= 1 ETH at all times. Furthermore, when the price of purchasing CVGX is close to 1 ETH (the floor price) it is close to risk-free due to the borrowing mechanism. This is cheap voting power opportunistic participants can tap into; increasing the price of CVGX and putting oCVGX back in the money.