> For the complete documentation index, see [llms.txt](https://dev.bondprotocol.finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://dev.bondprotocol.finance/smart-contracts/option-system/options-liquidity-mining-olm/oracle-strike-olm.md).

# Oracle Strike OLM

[Git Source](https://github.com/Bond-Protocol/option-contracts/blob/master/src/fixed-strike/liquidity-mining/OLM.sol)

**Inherits:** [OLM](/smart-contracts/option-system/options-liquidity-mining-olm.md)

*The Oracle Strike OLM contract uses an oracle to determine the fixed strike price when a new option token is created on epoch transition. This should not be confused with Oracle Strike Option Tokens, whose strike price changes dynamically based on the oracle price.*

### State Variables

#### oracle

Oracle contract used to get a current strike price when creating a new option token

```solidity
IBondOracle public oracle;
```

#### oracleDiscount

Discount to the oracle price used to set the strike price when creating a new option token

```solidity
uint48 public oracleDiscount;
```

#### ONE\_HUNDRED\_PERCENT

```solidity
uint48 internal constant ONE_HUNDRED_PERCENT = 1e5;
```

#### minStrikePrice

Minimum strike price that can be set when creating a new option token, in number of quote tokens per payout token

```solidity
uint256 public minStrikePrice;
```

### Functions

#### \_initialize

Internal function, not callable directly. Called within `initialize` to implement Oracle Strike OLM specific initialization logic.

```solidity
function _initialize(bytes calldata params_) internal override;
```

**Parameters**

| Name              | Type          | Description                                                                                                                   |
| ----------------- | ------------- | ----------------------------------------------------------------------------------------------------------------------------- |
| `oracle_`         | `IBondOracle` | ABI-encoded bytes containing the oracle, oracle discount, and minimum strike price                                            |
| `oracleDiscount_` | `uint48`      | Percent discount from oracle price to use for strike price, with 3 decimal places. i.e. `1e3 = 1000 = 1%`                     |
| `minStrikePrice_` | `uint256`     | Minimum strike price allowed to be used by the OLM. Provides a floor price in case of large market declines or oracle issues. |

**The parameters for this function are ABI-encoded into a** `bytes` **object and passed as the** `other_`**variable into the top-level OLM** `initialize` **function. For example:**

```solidity
bytes memory other = abi.encode(oracle, oracleDiscount, minStrikePrice);
```

#### nextStrikePrice

Returns the strike price that would be used if a new epoch started right now

```solidity
function nextStrikePrice() public view override returns (uint256);
```

#### setOracle

Set the oracle contract

Only owner

```solidity
function setOracle(IBondOracle oracle_) external onlyOwner requireInitialized;
```

**Parameters**

| Name      | Type          | Description                                                                         |
| --------- | ------------- | ----------------------------------------------------------------------------------- |
| `oracle_` | `IBondOracle` | Oracle contract used to get a current strike price when creating a new option token |

#### setOracleDiscount

Set the oracle discount

Only owner

```solidity
function setOracleDiscount(uint48 oracleDiscount_) external onlyOwner requireInitialized;
```

**Parameters**

| Name              | Type     | Description                                                                                |
| ----------------- | -------- | ------------------------------------------------------------------------------------------ |
| `oracleDiscount_` | `uint48` | Discount to the oracle price used to set the strike price when creating a new option token |

#### setMinStrikePrice

Set the minimum strike price

Only owner

```solidity
function setMinStrikePrice(uint256 minStrikePrice_) external onlyOwner requireInitialized;
```

**Parameters**

| Name              | Type      | Description                                                                                                       |
| ----------------- | --------- | ----------------------------------------------------------------------------------------------------------------- |
| `minStrikePrice_` | `uint256` | Minimum strike price that can be set when creating a new option token, in number of quote tokens per payout token |

#### setQuoteToken

Set the quote token that is used for the option tokens

```solidity
function setQuoteToken(ERC20 quoteToken_) external override onlyOwner requireInitialized;
```

**Parameters**

| Name          | Type    | Description                                                           |
| ------------- | ------- | --------------------------------------------------------------------- |
| `quoteToken_` | `ERC20` | Token that stakers must pay to exercise the call options they receive |


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