bone but it would be more fun if we bought it for even less and without a $500k parachute!
OIP-82: Tender Offer for Spartacus Finance
clearly no.
it's just a bailout for dying capycat project with paying extremely high premium.
no merits, but harm to olympus.
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.
uliner I think people would buy the arb regardless
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.
Bravojtango can you please elaborate on why it is a no-go for you?
RufusXavier can you please elaborate on why it is a no for you? Specific feedback is helpful.
UncommonSense noone is trying to pull cheap tricks here.
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.
Would think it would be nice to include the link to SPA frontend https://app.spartacus.finance/#/dashboard.
It's quite a nice dashboard compare to a lot of the forks out there and I understand why a dev grant is in the books
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
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!
I don't think a pure gOHM payout is the best play here. We're going to have some in their community unwilling to accept the offer simply because they hate the token. We also introduce a concentrated liquidity position which would allow for large exists funded by the treasury. I'd prefer to pay their DAI out directly as an option.
Thanks Shreddy.
Good to hear r.e. the ongoing conversations with the devs etc.
R.e. there still being a Spartacus site. Would the dashboard become the same as ours? i.e. same treasury based on OHM. Would new people buying into the protocol buy OHM? Would the website rebrand to Olympus. That kind of thing. If you could create some clarity there that would be great.
Thanks again.
tumblebumble The "$34" figure is in reference to the market premium (tender offer price - spot price). This was 50 - 16 = 34 at the time and the post is referring to the SPA token.
willynikes All that matters is what SPA holders decide to do with their coins. If the majority of HODLers take the tender offer then OHM will eat SPA and their dev's quibbles will be irrelevant assuming full OHM control. Please don't try to speak for all SPA holders as I am one and I am greatly in favor of this deal.
This is a hostile takeover now AFAIK - a common practice in traditional public equities and a healthy part of financial markets. Clearly, SPA holders are discontent with the performance of their fork so far given the market price - I am looking forward to watching these two great projects join forces in a win-win deal.