The Problem: Traditional Web3 bridges are broken.

They fractionalize liquidity.

Slowly transfer wealth to arbitrageurs.

Cannot capture the community opportunity or marketing visibility new pairs can.

Create bearish charts (easily front ran & dumped) due to inflated starting market caps.

Overview: OMT-69 is the solution.

This whitepaper dives into how OMTs work, the first-mover use case and our creative thoughts on potential applications. Thoughts on the future of OMTs will also cover: how a coin can PvE itself, protecting holders during a bridge, solving trench PvP and fractionalizing token sinks.

The Foundation: How it works.

OMT stands for "Omnichain Mergeable Token" standard. It is composed of a two-way bridge contract on 2 chains that communicate via LayerZero.

Typical bridges are known as Cross-Chain Assets (CCAs) or Omnichain Fungible Tokens (OFTs). In these bridges, the Primary (original coin) is burned/locked in a contract, and a Secondary (new coin) is issued on the other chain.

OMTs challenge this thesis: they enable coins to be swapped between chains at a determined ratio. For example, 1M SOL coins could equal 3M BNB coins, or vice versa. Bridges fractionalize market cap; mergers expand it.

The timeline of the bridge opening and determined ratio is specific to the use case of the bridge. At the time when the bridge is opened, liquidity on both sides can be seeded with token supply.

This seeded liquidity removes tokens from circulation on both sides. This allows teams to dedicate the cash typically needed to fund liquidity towards buybacks or infrastructure and allows the on-chain markets to determine demand (and therefore liquidity) for the Secondary token.

The above describes the technology of OMT-69. Its applications are widely applicable, but to appropriately understand OMT-69, it's best to explain the specifics of the first mover in OMT-69: $CRYBB.

The First-Mover: Utilizing OMTs appropriately.

OMTs are best utilized with the Secondary token being a high float, low valuation token. This allows the market to determine its value and liquidity.

For context: @crybbcoin is a memecoin on SOL, and majority of meme volume & interest spans between SOL & BNB. Therefore, $CRYBB chose a fair launch on BNB for its Secondary.

Upon launch, 25% of the supply was purchased to seed liquidity in the bridge (removed from circulation).

At launch, it was announced the ratio of the bridge will be determined and fixed within 12-48 hours of the BNB launch. This allows the market cap of the BNB coin to stabilize, and for the market to determine the ratio they will trade at.

This creates a risk-free opportunity for $CRYBB. If there is no demand on BNB, the coin will likely die with a small amount of liquidity the SOL holders can utilize. If it's able to outshine the SOL coin's market cap, it creates a competitive PvE dynamic between both coins while growing the total size of the project.

The Simplicity: Perfect User Protection & Experience.

The most significant aspect of OMT-69 is removing the complexity of bridging as we know it. Once the OMT-69 Bridge is live, the market cap ratios of BNB & SOL are fixed via the swap rate. This means that before, during and after the bridge is live: neither chain has any advantage over the other. Even if totally unaware of bridge mechanics, users are protected.

Due to the determined ratio of swaps being tied to the market cap ratio, USD value and cost basis is preserved. This means Primary (SOL) holders need not sell to buy Secondary (BNB) tokens, as their holdings will maintain their value. $100 of tokens on SOL will swap to $100 on BNB. Similarly, holders of the Secondary (BNB) need not fear sell pressure from the Primary (SOL) chain.

Occasionally projects attempt a "relaunch" and airdrop previous holders. This becomes an issue, and is something that OMT addresses directly. There are no free tokens in OMT. There is only a transfer of value between chains. If the user was holding Primary (SOL) tokens and was satisfied with their position and cost basis pre-bridge, then there is no reason as to why the addition of the Secondary (BNB) would create sell pressure. Secondary (BNB) holders can safely bid pre-bridge as well without risk of adverse sell pressure: any would be mitigated by the cost basis the user originally paid for their Primary (SOL) tokens.

The Possibilities: Future Applications of OMT-69.

Crypto M&A deals.

@PumpDotFun recently acquired Padre. $PADRE lost all of its value in the process. While $PUMP was airdropped to $PADRE holders as reconciliation, OMT-69 would have not required that (saving PUMP treasury + reducing sell pressure), increased total liquidity between PUMP & PADRE (the padre LP is now useless), and OMT could have created this transition seamlessly. As crypto's total market cap scales, products will inevitably launch their tokens, and acquisitions with overlapping coins will become messy and laborious.

Migrations.

Migrating tokens inevitably leaves a large part of the community behind (ie $BELIEVE) and creates exceptionally bearish charts. They are front run, dumped and have a bleeding chart on the other side due ot the high starting market cap. OMT-69 is best utilized with a high float, low market cap Secondary, to create bullish charts. And if the Secondary does not go as planned, it's a low risk proposition as it does not affect the Primary at all. Migrations inevitably split the community, mergers don't.

PvP.

Player versus player mentality has ruined the majority of new narratives. $NEIRO & $BROCCOLI are major examples, with dozens happening every week on a smaller scale. Imagine a merger between the main PvP runners, combining their market cap. Quite a few elements would need to align here, but one day we believe it will be possible to eliminate PvP via mergers.

Fractionalizing token sinks.

Most large tokens have multiple token sinks that drive value towards a singular token. Imagine an ecosystem where governance utility was split from revenue utility, for example $JUP (theoretically). The public markets will inform the team exactly where token demand is coming from, and rewards/incentives can be targeted towards those holders / utility specifically. OMT-69 will provide the solution.