• Proposal

  • OIP-82: Tender Offer for Spartacus Finance

JaLa Understood. I think dropkickdarren above was asking the right questions if we were to proceed along the lines of this proposal.

But this initial proposal raises another issue for me that goes to the heart of OIP-80 and making proposals to forks generally. I know we think that these forks and their holders would act rationally and recognize that we’re proposing—a premium over token price but a discount from treasury market value—is the best they can possibly hope for out of the fork whether they take the deal or not. But in significant part we’re dealing with “HODL” and “WAGMI” mentality that may prevent most if not all of these offers from being accepted. Maybe a friendly fork (like Umami) would be amenable to terms like this, but from what I’ve observed, every other fork thinks that we suck and that they’re doing all the right things, and it’s just a matter of time before they make it and we don’t.

this is my long way of saying that I think we may need to take a more Gordon Gekko approach to acquiring discounted treasuries from certain forks.

    There are already good comments and suggestions made in this thread. Hopefully team picks up on it. In the current format the proposal is a big no go. Although I see a most of the comments disapproving the proposal with good justification for disagreement and hardly any comments in justification, the overall vote for approval is more. What's happening here? Should my faith in Ohm erode here.

    • JaLa replied to this.

      bone but it would be more fun if we bought it for even less and without a $500k parachute!

        clearly no.

        it's just a bailout for dying capycat project with paying extremely high premium.

        no merits, but harm to olympus.

        • JaLa replied to this.

          Why has a 3rd vote option been added? Please tell me the OHM team did not do this because they were not happy with the way the yes/no vote has been trending toward "no" lately.

            UncommonSense It is actually the opposite ser, I think there was too much binary decision making and we wanted to allow people who were on the fence to have a voting option. We are indifferent to the vote outcome.

              OIP-82 Addendum

              Hello Ohmies!

              I want to thank everyone for the incredible feedback, it is great to see deliberate and sensible discourse around this topic. We are carefully reading all messages and are taking them into account.

              Since the poll has been voted on I am not able go back and make edits that some of the community were asking for to get clarity on some of the deal points. However, I will outline them in this message instead. Let this message act as a analogous source of information for this proposal.

              To start, I have added a third option to the poll which will allow people to vote for an amendment to this proposal to be put up. This will allow new voters to voice their mixed opinion by voting for a new proposal to be created. This was not a way to change the narrative, we are indifferent as to whether it passes or not. This is a community vote through and through.

              To be clear, if this proposal were to pass, we will make available a smart contract via an Olympus front end to execute the tender offer. SPA holders will be able to show their support for the process by depositing their tokens into the contract. Their tokens will be wrapped and staked so they do not miss any rebases, and will be available for withdrawal if the proposal fails. Although this is not technically a “vote” by SPA holders, it is an equivalent way to show support for the tender offer. This is the best way we saw to include the Spartacus community in the process.

              On the dev grant: The goal of the grant is certainly not to reward inactive devs or act as a vehicle for devs to spin up projects and then abandon them in hopes of gaining a grant. The intention is to open up a line of communication with Spartacus devs and incentivize them to cooperate through the entire process and set SPA holders free. Since Spartacus has no direct community -> developer feedback pipeline, this was our process to aid that. We are open to reworking this point if it is not appealing to the community.

              On some of the deal points that need further explanation:

              • There was a bit of confusion around why this deal is +EV, but there are winning scenarios all around. For Olympus, we will be making a swap for the treasury, which will net us around US$16.17M at the time of writing this addendum. This, in turn, compensates for the supply increase of OHM we will mint for this deal. It is also much more cost effective than if we directly market bought the assets. For SPA holders, we are giving them an opportunity to exit their position in Spartacus at a more than 3x premium to their current price. If we were to offer them a lower price, the tender offer may not be attractive enough to move upon. For Developers, the deal will pay out a competitive (perhaps too competitive) exit sum that helps to curate a graceful exit, protected by a condition against rugging in which the multi-sig must be handed over prior to the trade occurring. The developer is also welcome to collaborate with Olympus further if they so choose to do so. Some may believe we shouldn't make this a positive outcome deal for the Developer and I can't blame them for thinking this.
              • The increase of backing / OHM if the deal were to go through at our proposed price with current market numbers would be approx. US$1.35 per OHM. We came to this conclusion based on the expected gain of treasury assets divided by the OHM supply. So that would be US$16.18M $divided by$ 12M. We are actually strengthening the value of $OHM tokens through this trade.
              • Our new V3 liquidity position is well equipped to handle and absorb the sell pressure of a sell-off were that to happen. Of course, we want every SPA holder to become new Ohmies from this deal if they weren't already, but we do expect many traders to sell and have hedged against that outcome as best as possible. There would be minimal to no impact on price if our liquidity wall were put into place.

              Please continue to leave questions and comments - we will continue to field them and give as many answers as possible.

                rustycandy we're buying the treasury at a discount, not a premium.

                  RufusXavier can you please elaborate on why it is a no for you? Specific feedback is helpful.

                    uliner it's not a bailout.

                    If you think about what's happening here, there's no difference than if someone were to take their dai and bond to get ohm. This is just different in scale.

                    If you think closely about the mechanics, it's not a premium, you're actually trading your ohm for dai. Ohmies are getting a better deal since you're not giving out ohm at a discount.

                    On top of that, you get additional community members and bailing out an entire cohort of people to help evangelize ohm since you "bailed" them out.

                        supesumonki but those people could have been Ohmies, but chose to go with another fork. No issue with that, everyone can do whatever they want. I just don’t think we as a protocol are in a particular position of strength at the moment… I would rather have any OHM dilution going to people who currently back the protocol (and therefore stake their OHM/hold gOHM) instead of bailing others out.

                        I think the DAO’s mindshare and focus should be on ways to stimulate buy pressure and a $1.00 increase in RFV is not going to do anything in the short term, nor will it have any sort of lasting impact moving forward.

                            I'm so far with but I do not understand how the offer of transfer from SPA to gOhm is not going to make a sell pressure. How is the sell pressure going to be handled?

                            Olympus has been authorized to take action to absorb any sell pressure that might occur after the Tender Price is paid, including by establishing a new V3 liquidity position which could capture 100% of the gOHM paid as part of the deal.

                            Thanks for this. I like our 'Tender' capability in principle. Two questions on this one.

                            1). What happens to Spartacus does the site close down and essentially everyone onboards as OHMies?

                            2). Is this a hostile takeover? Have we been talking with the devs and the Spartacus team in general?

                            Thanks

                              PorkChop

                              Thanks for the questions Pork Chop!

                              First off, we are not taking over the protocol - just the treasury. There will still be a Spartacus site if the deal were to go through. Although, new Ohmies would be awesome.

                              Second, it is not a hostile takeover. We have been in contact now with both mods and devs of Spartacus regarding this deal and expect to remain so throughout its life cycle.

                              I hope this helps!