Draft OIP-27 OHM Reactor on Tokemak and Pilot Deposit ETH Reserves

Don_G_Lover

PLEASE NOTE THIS WOULD BE OIP-27

OHM Reactor on Tokemak

An OHM reactor on Tokemak will strengthen liquidity for OHM trading pairs across trading venues and open up additional opportunities to leverage Tokemak. To initialize an OHM reactor, Tokemak requires an operational reserve of OHM to be able to efficiently deploy OHM liquidity to trading venues and make OHM LPs on Tokemak benefit from IL mitigation. This can be structured as follows:

Olympus to make 3M USD in OHM available to the Tokemak reactor reserve by proceeding with a DAO-to-DAO trade for 3M USD in TOKE:

• This collateral would allow Tokemak to source an initial 18M USD worth of liquidity (9M USD of OHM + equivalent 9M USD of ETH)

• The acquired TOKE would make Olympus DAO a powerful Liquidity Director

• Generalized liquidity can be directed across the ecosystem, ensuring best prices and minimal slippage for OHM trading

• Opportunity for both OHM LPs and Olympus DAO to earn additional rewards

Initiating a reactor will also result in additional ways for the DAO to leverage Tokemak, such as replacing single-asset staking with tOHM staking. This will effectively roll pool 1 and 2 into one, resulting in multiple benefits:

• Users that were previously single-asset staking now become LPs, further increasing OHM liquidity across DeFi

• Simplified process to provide liquidity (effectively single-asset staking) and low risk should increase the willingness of especially less sophisticated holders to participate in LP

• Olympus, as the tOHM holder, would be the recipient of large amounts of TOKE rewards, which could be either used to further increase LD power, or to supplement pool rewards

• OHM rewards could be lowered as LPs benefit from IL mitigation and/or rewards are supplemented by additional TOKE rewards

Providing ETH/Stable Reserve to Tokemak

The naturally limiting factor to Tokemak is the available operational ETH reserve, which is used to mitigate IL in ETH trading pairs deployed from the reactors. Providing Tokemak with reserve ETH can, depending on the DAOs needs have benefits such as treasury diversification: As ETH is dripped out to LPs, Olympus would be the recipient of surplus assets and TOKE.

laughing_Monk

GM ohmies

I agree with your draft proposition Don_G_Lover r" 👍 I have a question related to the organization of the election of the first reactors : only the 5 first most voted token will be chosen (end of month if I recall, voting campaign lasting a week or less)

Don't we need to vote to be accepted to have a reactor and organize our selves and coordinate the voting campaign ? I have seen the candidates and their community's base isn't small (but not as half as cool as our😉).

Namaste.

Don_G_Lover

laughing_Monk that’s right! Being a bit preemptive with our governance to be ready WHEN we win the vote!!!

Let’s organize.

thedamnswan

Just finished my deep dive into TOKE and saw this post. Big time opportunity for OlympusDAO - but something tells me that Zeus and the mountain-top bois are already on top of this (3, 3)

CJizzle

Hey guys, TOKE holder and recent OHM holder here. I bought OHM after I heard the Tokemak CEO sing high praises about OHM on a podcast. I dig the synergy between the 2 very much.

35+ DAOs are going to be vying for the first 5 spots to land a Tokemak Reactor starting on September 28th. In order to vote, you'll need TOKE.

Here are details about the selection process Tokemak is running: https://medium.com/tokemak/c-o-r-e-collateralization-of-reactors-event-2a2d5b2f8e70

If you decide that Tokemak's liquidity will benefit Olympus DAO you'll need to act sooner rather than later to either purchase or farm TOKE in order to first participate in their selection process (and later your own DAO will need to approve).

captive

OHM + TOKE = WAGMI x a billion

MrLoop

You go from 3M in OHM to 9M to 18M. You might want to look into that.

That said, I'm not sure I see the point, other than the DAO diversifying the treasury. The Bond mechanism is a much better liquidity-blackhole than the Tokemak mechanism. Where TOKE will excel is in the initial bootstrapping of liquidity. But once you have a bare minimum of liquidity, Olympus PRO makes much more sense.

So, I agree to doing a DAO-2-DAO asset swap, but I don't see the point of an OHM reactor. We don't want to be at the mercy of TOKE LDs, we want to own ALL our liquidity!