- Edited
Introduction
The Olympus community recently passed OIP-80, Olympus’ framework for making tender offers for forks trading below their treasury backing. OIP-80 fits into Olympus’ broader strategic vision, set out in the Olympus12 Action plan published early this year, to build a strong ecosystem around our decentralized reserve currency. You can read OIP-80 here and Olympus 12 here.
Under OIP-80, our community has authorized the Olympus team to propose specific tender offers of forks that are trading below their backing, where the transaction would be economically and strategically accretive to both communities. We believe Spartacus Finance presents such an opportunity.
Spartacus has traded significantly below its backing since the middle of December 2021, reflecting a lack of market confidence in the project. A portion of the Spartacus community has expressed its desire to distribute the treasury and end the project. Another portion wishes to continue to deliver on Spartacus’ roadmap, the execution of which could be materially handicapped by a lack of market confidence.
We believe a unification of the Spartacus and Olympus treasuries would benefit both communities. By integrating Spartacus' treasury, development team, and community with those of Olympus, we will strengthen our RFV while welcoming potentially valuable team members. Spartacus community members would capture significantly more value than current for their SPA tokens, and would still be able to carry forward our shared vision for DeFi within Olympus.
We therefore propose that the Olympus community approve a tender offer for the outstanding float of Spartacus tokens, at a price per token, denominated in gOHM, that represents a higher value per Spartacus token than the current market price. This value is closer to Spartacus’ actual treasury backing per token. Details are set out in the “Proposal” section, below.
There is no place like hOHM.
Proposal
The Olympus team proposes that the Olympus community authorize it to make the offer described below to Spartacus, its community and its development team.
Tender Offer:
- Subject to the Conditions listed below, Olympus offers (the “Tender Offer”) to pay the Tender Price to each SPA holder that deposits SPA tokens to the TO Contract during the Tender Period.
Tender Price:
- gOHM equal to US$50 (the “Tender Price”), reflecting a premium to the SPA market price of approximately US$34.25 (as measured immediately prior to publication of this proposal).
Vesting:
- There is no vesting of the Tender Price; gOHM received in the Tender Offer will be freely-tradable upon payment to participating SPA holders
Developer Grant:
Olympus hopes the Spartacus developers will join the Olympus team and continue to build. Although we understand this is impossible to guarantee in a DAO, as a show of Olympus’ good faith we offer the Spartacus development team a grant of US$500,000 in gOHM upon satisfaction of the Conditions (the “Developer Grant”).
The Developer Grant will vest over a period of 90 days. Note that the Developer Grant does not impact the Tender Price paid to SPA holders; their cut of the treasury is the same regardless of this grant.
Tender Period:
Assuming this initial proposal is approved by the Olympus community, the Tender Offer is anticipated to run for 7 days, from Saturday, February 26 until Saturday, March 5 (the “Tender Period”).
Olympus may extend the Tender Period in its sole discretion for up to an additional 14 days.
Straggler Period:
- If the Conditions are met, an additional period of 365 days will begin after the Tender Period (the “Straggler Period”) in which Olympus will pay, in gOHM, 90% of the USD-equivalent of the Tender Price. Note that the amount of gOHM paid out is based on the spot price of gOHM at the time of swap.
Example 1: Alice accepts the Tender Offer during the Tender Period. She can claim US$50 worth of gOHM if the Conditions are met.
Alice owns 10 SPA, and she redeems when gOHM price is $5000. She therefore claims 10 x US$50 / 5000 = 0.1 gOHM.
Example 2: Bob accepts the Tender Offer during the Straggler Period. He can claim US$45 worth of gOHM if the Conditions are met.
Bob owns 10 SPA, and he redeems when gOHM price is $5000. He therefore claims 10 x US$[45] / 5000 = 0.09 gOHM.
Excluded Tokens:
- The Tender Offer does not apply to SPA tokens held by the DAO (or affiliates) as of 23:59 UTC on Saturday, February 19, 2022, or held in LP at that time and later removed by Spartacus (the “Excluded Tokens”).
TO Contract:
The Tender Offer will be conducted through an escrow smart contract controlled by an Olympus multisig and accessible through an Olympus front end.
The TO Contract will hold unstaked, staked and wrapped staked SPA tokens deposited by holders in escrow until the end of the Tender Period. SPA tokens deposited in the TO Contract will not be removed for any reason during the Tender Period. When the Tender Period ends, the Olympus team will meet to determine whether the Conditions have been satisfied. Unstaked and staked SPA tokens will be converted to wrapped staked SPA tokens so that holders who deposit do not miss any rebases.
If the Conditions have been satisfied, the Olympus multisig will cause the Tender Price to be paid to SPA holders who have deposited their SPA tokens into the TO Contract.
If the Conditions have not been satisfied, Olympus will either walk away or extend the deadline for up to an additional 14 days.
If the Conditions have still not been satisfied after this additional period, Olympus will walk away, and holders will be able to claim their SPA tokens back from the TO Contract.
Conditions:
Upon expiry of the Tender Period, Olympus will execute payment of the Tender Price per SPA token in the TO Contract if the following conditions are met to Olympus’ satisfaction (the “Conditions”):
The Olympus community has approved the Tender Offer via snapshot vote
The Spartacus community has signaled its support of the Tender Offer by depositing SPA Tokens (not including Excluded Tokens) into the TO Contract
No Excluded Tokens have been deposited in the TO Contract
Full control of the following contracts has been transferred to Olympus multisigs:
Spartacus Treasury: 0x8CFA87aD11e69E071c40D58d2d1a01F862aE01a8
Spartacus DAO: 0x3292D7d72Ea46cb67186Cd7131fe47333F7c7008
- The Spartacus treasury contains the equivalent of at least US$60 million at the moment control of the key contracts has been transferred to Olympus
- The Spartacus staking reward rate has not been increased during the Tender Period
Sell Pressure:
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.
Polling Period
This poll will run for 5 days before heading to snapshot for 2 days if it were to pass. Please read and submit comments or critiques.