Summary – We are seeking community input on a potential future proposal to add bHOME, a Bacon Protocol stablecoin backed by US mortgage liens, to the Olympus treasury's holdings. To do so, we suggest swapping a small portion of Olympus’s existing treasury stablecoins, into bHOME. Doing so will diversify the treasury into Real World Assets (RWA) in the form of low-risk US residential mortgage liens, and help grow, diversify, and strengthen the Olympus treasury.
Motivation – Real estate is a critical component of every economy and should be part of the Olympus econOHMy. Currently, the Olympus treasury (and thereby the econOHMy) is lacking exposure in real estate. Converting a small portion (<3.3%) of Olympus’s currently held treasury stablecoins (DAI, FRAX, LUSD) into bHOME would diversify the Olympus treasury into a stablecoin backed by (Fannie & Freddie -qualified) US residential mortgages. This would benefit OHMies as they could expect:
- bHOME to appreciate at the average lien yield rate (currently ~3.1% APY)
- for OHM's treasury value to grow stably, securely, and be backed by RWA
- to be able to bridge RWA into the econOHMy
- and earn the BACON governance token by staking bHOME in the Bacon protocol (currently ~44% APY)
Proposal - OlympusDAO swap ~1.1% of each of its major Treasury stablecoin holdings [DAI, FRAX, LUSD), roughly $3.3M as of 4/7/22, and either:
Option 1: Store bHOME in Olympus's Treasury and earn ~3.1% APY
Option 2: Stake bHOME into Bacon protocol and earn the BACON governance token - yielding ~3.1% APY on bHOME and ~44% APY for staking
Supportive Links:
www.baconcoin.com
https://files.baconcoin.finance/bacon-protocol-whitepaper.pdf
Polling Period
TBD