#OIL

Why Does OIL(USOON) Track USO? Tokenized Fund Premiums, Discounts and Price Differences Explained

The OIL(USOON) token is designed to provide economic exposure to the United States Oil Fund (USO) rather than directly tracking the spot price of WTI crude oil. Because USO utilizes short-dated futures contracts and undergoes a scheduled five-day roll period, the token's performance is inherently tied to the fund's methodology rather than the underlying commodity's immediate market price. Discrepancies between the token price and the underlying asset can arise due to factors such as market liquidity, trading hour differences between the NYSE Arca and global commodity markets, and the specific structure of the futures contracts. Tokenized-asset mechanisms, including minting and redemption processes, are intended to help align token market prices with the underlying economic reference. However, temporary premiums or discounts are common and do not necessarily indicate a failure in the token's tracking mechanism. Investors must recognize that the token reflects the performance of the USO fund, which may diverge from spot crude oil prices due to the complexities of futures-based commodity pools. Understanding these structural nuances is essential for market participants to avoid misinterpreting temporary price differences as tracking errors.

mexc.co·3h ago