The purpose of OIP-87 is to formalize Olympus participating in the seed round of BeraChain, as well as align as strategic partners with the BeraChain Foundation. The BeraChain team is raising $10m USD at a $50m fully diluted valuation. We propose that Olympus deploys $500k of treasury assets to invest in BeraChain. This allocation would be 1% of the genesis token supply. Another 1% will be given to Olympus from the BeraChain strategic partnerships fund to bring Olympus' total ownership to 2% of the network.
This would be Olympus' largest early-stage allocation to a seed venture to date.
What is BeraChain?
BeraChain is a fully EVM equivalent & IBC connected layer one blockchain that implements a novel "Proof of Liquidity" Consensus mechanism. PoLC aims to combat the shortcomings of traditional Proof of Stake validated blockchains by systemically ensuring the creation of liquidity as a core primitive required for block production.
Key Features of BeraChain:
Tri-Token Model: BeraChain follows a Tri-Token model consisting of fee token, governance token, and native fractional algorithmic stablecoin
Proof of Liquidity Consensus: Validator consensus power is calculated via the depth of liquidity pools within the native decentralized exchange. We have partnered with CrocSwap to assist in the development. The DEX is tied into the consensus mechanism, allowing liquidity "stakers" to earn block rewards. The consensus engine is based on a heavily modified version of Tendermint and utilizes the Cosmos SDK as the application layer
Full EVM Compatibility: Existing Ethereum smart contracts can be deployed without modification
Full IBC Enablement: Protocols can enable IBC transfers for their ERC20 tokens, allowing permissionless ERC20 bridging to over 30 chains, such as the Cosmos Hub and Terra
Built-in Synapse Integration: Protocols can bridge their tokens to 10+ EVM blockchains with minimal engineering effort; BeraChain handles everything
Interblock Computation: Protocols can execute autonomous tasks (keeper transactions) without external invocation. Reduces physical hardware requirements for DAOs and facilitates centralization aspects of running periodic tasks
Liquidity Provisioning: Governance token voting power can be used to direct systemically created liquidity as part of the block rewards and token bonding process. Protocols can utilize this feature to secure permanent, locked liquidity for their protocol without dilution due to bonding
To provide an opportunity for Olympus to participate in BeraChain seed round and form a strategic partnership.
Proposed Terms Seed Round Participation Olympus is to deploy $500k in OHM distributed to the BeraChain Foundation in 5 installments, paid out at the first of each month beginning April 1st, 2022, and concluding on August 1st, 2022. In exchange, Olympus will receive the market equivalent of $500k (1% of the initial token supply) in the native fee token during the Token Generation Event (TGE). These tokens are subject to a three-year vesting period, with an unlock cliff at six months. Vesting of tokens begins at the signing of the genesis block.
The BeraChain Foundation will distribute additional fee tokens to the market equivalent value of $500k (1%) to Olympus to participate in the network as a strategic partner. These tokens are subject to the same vesting schedule listed above. In exchange for this allotment, our team and Olympus have agreed to commitments including but not limited to:
From Olympus DAO:
Creation of an Olympus Treasury on BeraChain for storing "Cosmos" native assets, with the initial focus on Berachain native fee token, Berachain stablecoin, and UST - subject to required Olympus Treasury team risk assessment, recommendation of asset allocations and treasury allocation proposal (TAP). In the longer term, consideration of expansion other Cosmos assets such as ATOM or LUNA
A deployment of Olympus Pro on BeraChain, with native Berachain protocols to act as launch partners
Marketing and promotion assistance
Continue to collaborate and explore further opportunities to integrate and work together
Deployment of the aforementioned Olympus Treasury at the following vanity address:
Both the investment and strategic partnership tokens can be allocated directly to this address
Bridging support via the Synapse Protocol and IBC for gOHM + other cross-chain support as needed for Olympus v3
BeraChain x Olympus Odyssey
BeraChain will continue efforts in helping Olympus Odyssey cross-chain engineering efforts, including but not limited to smart contract + cross-chain relayer architecture/design
Odyssey will utilize BeraChain as the "main hub" for storage, ERC721, ERC1155, and rewards routing
The temperature check process begins now and will run for at least 72 hours. A Snapshot vote will subsequently be initiated and open for at least 72 hours.