Personally, I don't have any experience with Liquity though I read about it in the past. But the motivations and proposal above look sound to further diversifying our treasury and grow Olympus

tex thank you so much for the hard work you’ve put into partnerships and the evaluation framework.

I don’t know enough about Liquity to comment on it or whether it’s the right stablecoin to add as next one, but I really like the process you’ve put in place to evaluate partnerships. For that reason you have my full support. This will also force me to learn more about Liquity.

Thank you Ohmie!

100% support on this one - I've shilled LUSD as the next stablecoin treasury asset a few times already so this proposal makes a lot of sense to me. LUSD is probably the best collateralized & decentralized stablecoin in existence currently. So to diversify away from centralized or semi-centralized assets LUSD is probably our best bet. I also like the idea of adding the treasury LUSD to the stability fund so that we can earn more LQTY that way + buy ETH cheaply during a downturn.

Another step of further diversification on the road of becoming a fully decentralized currency! 🙂
Never been more excited for Olympus and all Ohmies.

Yes, absolutely use LUSD! I've been a Liquity user for months now and it is the best lending facility around. No interest loans on ETH collateral only, very over-collateralized and safe. Liquity handled the May liquidations no problem and us users that didn't over-leverage made ETH from staking LQTY. An Olympus front-end will help us earn Treasury rewards + encourage Ohmies to shop for lending at Liquity first..

This is a great proposal. 100% for.

tex Can you share the reasoning that led to this conclusion: "After evaluating several assets, the DAO Treasury team believes that LUSD is the best hedge against centralized stablecoin risk." ?

  • tex replied to this.

    My favorite decentralized stable - FOR✍

    Reimao Sure thing! So we evaluated several assets on a range of quantifiable categories like Market Cap, Trading Volume, On-Chain Liquidity, and Volatility in order to assess their relative size, stability, and performance as stablecoins. Additional categories like Decentralization, Utility, Unique Holders, and Smart Contract Age/Permissions were used to separate assets based on censorship-resistance and the benefits that we gain from adding to the Treasury.

    Specifically for Liquity, the category that really separated LUSD from other options was Decentralization. Since Liquity is fully governance-minimized, there is no risk of the goal posts being moved on LUSD's backing. This also makes the process of unwinding positions simpler, since we can redeem LUSD for the underlying ETH for a small redemption fee.

    Solid move in the right direction for us. Had not heard of LUSD before but seems like a good choice for OHM!

      Love the idea, was just researching LUSD last week too. Looks promising and it appears to hit the right factors.

      tex

      I definitely voted yes on this. This is a solid well run project that is more decentralized than most and runs very well.

      Liquity is another one of my favorite projects. I interviewed the founder Robert Lauko on MissionDeFi(missiondefi.com) if you want to learn more about the project. Have Zeus coming up shortly.

      Liquity Episode.
      https://bit.ly/liquity

      Lush market cap is smaller than ohm and the overall market cap of lusd is on the decline. Is it good to have lower market cap coin than ohm ?

      FOR. More % of decentralized stablecoin in our treasury is very good thing. Even if the project has smaller mc. Regulations on stablecoins will come, it is obvious and on the first line of fire are the centralized ones.

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