• Proposal
  • OIP-82: Tender Offer for Spartacus Finance

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”):

  1. The Olympus community has approved the Tender Offer via snapshot vote

  2. The Spartacus community has signaled its support of the Tender Offer by depositing SPA Tokens (not including Excluded Tokens) into the TO Contract

  3. No Excluded Tokens have been deposited in the TO Contract

  4. Full control of the following contracts has been transferred to Olympus multisigs:

    Spartacus Treasury: 0x8CFA87aD11e69E071c40D58d2d1a01F862aE01a8

    Spartacus DAO: 0x3292D7d72Ea46cb67186Cd7131fe47333F7c7008

  1. 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
  2. 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.

Authorize the tender offer for Spartacus Finance?

This poll has ended.

    What exactly is the purpose of all these bailouts? Can someone make a succinct argument as to why we would pay almost 50% over market for a failing protocol that will likely go to zero without this?

    I assume we would acquire the treasury and that’s great for OHM, but I don’t see why we would use gOHM to bail out these protocols and not at the very least vest their gOHM so it doesn’t flood the market. If we’re welcoming these people back hohm, and paying a premium on top of that, the least we can do is have their gOHM payout vest over a period of time (possibly as a bond, so 14 days?)

    We’re not in the most ideal market position right now as is, so this feels like a chance for people who backed a failing protocol to get out at a higher price and potentially cash out to the detriment of OHM price…

      Are we in contact or does the team have a direct line to the team of Spartacus? Recently some fud went through twitter with the main dev gone and not responding at all.

      Shreddy How was the tender price calculated? Right now the Spartacus website is showing a backing per SPA of 47.16. Looks like we are buying at/above market price of the underlying assets.

      What's the justification of acquiring these assets through a tender offer rather than just purchasing them on the open market?

      • Cc2 likes this.

      Bearded_Wotanist agreed. If the developers get $500k in gOHM “once the conditions of the tender have been met”, and the devs are presumably some of the largest holders in the protocol, then they are essentially getting paid a 500k fee to push this offer through…

      Isn’t a standing offer of a position at OlympusDao enough of a reward for the devs on top of the above market buyout of their failing protocol’s assets?

      Doesn’t feel completely above board to me tbh

      uliner

      Completely agree with this.

      Also is there any mechanism in place to stop further dilution of gohm and price decrease if all of this new gohm is simply dumped on the market once the Spartacus investors have it.

      There are some of us that would like to be "bailed out" as we are down on our gohm investment. That's great the OHM treasury continues to get richer and make more money but the token price is still down 90% since November with no significant buying pressure in sight. Focus on helping those people who have supported OHM and stuck it out even though they are upside down in their investment. I don't see the point of helping people who backed a losing copycat when we all know they invested chasing APY and got burned. This just seems like corporate takeover to enrich the treasury for pennies on the dollar when it may have a further negative effect on the price of OHM/GOHM.

        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

        Can we get some clarifications on this?

        Would that mean that the Olympus team would use the funds from the Spartacus treasury to establish a concentrated liquidity position to the equivalent in DAI to buying back all the gOHM of the Tender Offer?

        Also, some clarifications is needed in terms of your contacts with the Spartacus dev team and the funds for the developers as said above.

        資産の会社に公開買付けをするのは理にかされて。

        で、その価値が団に比例してことは、このかか?

        We would see a lot of arbitrators taking advantage of buying SPA sub $50 and then dumping gOHM at their first opportunity.

        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.

        Given we are supplying gOHM at a premium to the treasury that we are acquiring, absorbing sell pressure is not in our favor.

          We need token vesting, (14-30 days)

          No payout for the devs above $50k

          And a lower offer price (equivalent to the amount of assets in the treasury Olympus would recieve, Ex: $60 mil for $60 mil in gOHM, which would still provide a higher price than the market value per SPA token, and more profit to Olympus, as we could acquire assets without a bond discount.

            Stoked that the gears are already turning around OIP-80.

            That said: are we sure we feel comfortable with a $500k grant vested over 90 days in light of recent concerns around their "development team"? This proposal sets a precedent for use of OIP-80 going forward, so we should be careful not to incentivize behavior that doesn't align with Olympus. Even if it means an increase in treasury assets.

            uliner 17m in rfv profit for our treasury. Bumps our rfv by like 1.5 dollars per ohm

            No bueno, over paying for a dying asset. Why in Gods name would we overpay none the less think they would stay once being over compensated?

              Shreddy

              Spartacus treasury should be minimum of $60mm.

              Same way, please also inform how much $gOhm are we paying out for it?

              This will make us everyday user understand “how much ee are paying and how much we are getting ”

              Intangible benefits of acquiring community, good faith gesture etc will be like a bonus for us!

              spoysP A) there’s risk in being an arbitrageur and depositing into the tender offer contract that dissuades this (albeit only somewhat). There is the possibility that the devs won’t transfer the treasury, in which case the deposits are returned (and price likely tanks), and no gOHM is paid out, causing someone who is purely in it for the arb to lose money.

              For your other question, we’re offering gOHM at a premium to current SPA token prices but at a discount to the treasury, not a premium to the treasury, so it is still beneficial to absorb selling pressure as long as it doesn’t result in a nuke greater than the profit we stand to make from the discount

              joe1 because the treasury is worth more than what we’d pay. It’d be 8 figures of profit if the tender offer goes through