• General

  • Proposed Amendment to OIP-94, re: OHM Permanently Removed from Liquidity

I'd like to propose that instead of burning the OHM removed from liquidity via OIP-94, we segregate it and use it to incentivize Olympus Pro Partners and Bonders to bond OHM-X LPs. This would be a two-tiered incentive structure:

  1. OlyPro Partner fees reduced for OHM-X LP bonds, and
  2. Bonders of OHM-X LPs receive a claim on the segregated OHM {via some method}

This is a prime opportunity to experiment with incentivized utilization of OHM as a unit of exchange. Isolating these tokens (unstaked) instead of burning will remove the OHM from circulation until distributed.

Direct savings offered to Partners working to build LPs will be indirectly (likely partially) offset by Treasury LP fees accrued by bonders purchasing the OHM to bond said pairs, though I'd argue that reduced partner fees are an almost valueless loss due to their high-risk, as is the value of treasury-based governance.

The OHM pulled from liquidity is to be rewarded to bonders via some means, e.g. :

  • Payout OHM from OlyPro bonds from a contract wallet instead of via mint. Possible? If not,
  • This OHM be provided to the bonder at a small discount to form the liquidity pair (again, possible?). An advantage here is the OHM then sits in an LP and cannot be staked until purchased, delaying dilution.
  • Or, choice three: some amount of this OHM (3.3% of the value of the OHM in the LP bond?) be rewarded to the Bonders in addition to their claim at maturity. This seems least beneficial to Olympus, while being easy to market.
  • Other ideas welcome! This is essentially dead OHM we're discussing, so please get creative.

Meanwhile, until {distributed via some means} and staked, no dilution will result from the OHM in this stash and we will not be burning supply - I have some concern over a potential situation in which the amount of OHM burned needlessly delaying long-term expansion goals. This avoids the burn completely.

While OIPs-93/4 will help to stabilize OHM and hopefully build trust with the wider community, we need to continue searching for methods for systemic diffusion of OHM. Odyssey is a one such move. Olympus Pro, as I originally understood it, was meant to perform similarly. Unfortunately, most OlyPro partners have chosen to bond non-OHM LPs (there are zero OHM pair bonds currently). I see this as another sign of the lack of trust in OHM. OlyPro partners need some additional incentive. So, let's use this to-be-burned OHM to get ETH and DAI out of swaps between OHM and Olympus Pro Partner tokens.

With proper incentive we can convince OlyPro Partners and their Bonders to use OHM as a means of exchange. As the token would be burned otherwise, I see very little downside to providing such an incentive. We're gonna keep the money printer brrring for years anyway. It's mostly a matter of numbers, where I honestly have no clue:

  • If this would require a serious rework immediately, or if it's simply a matter of sending OHM to an OlyPro multisig instead of 0x0000.
  • What level of incentives could, or should, be offered.
  • How much OHM is expected to be removed from liquidity via OIP-94, and whether it is expected to be a one-shot process or if it ebbs and flows.

Looking forward to y'alls thoughts.

no need to complicate OIP-94 further imo. keep it simple, burn the OHM. there's enough unutilized OHM in DAO funds that can be put to work in this fashion if needed / more can be minted (as long as doesn't fukc with line 577 and the resulting dilution is shown to be accretive).

I am 100% in favor of using the OHM that exists for better purposes than sitting in the DAO wallet.

But I'd really prefer to keep the intentions of the OHM we have very cleanly segregated. Having OHM in a wallet taken off market but "earmarked" for this or that usage is an accounting nightmare. Let's burn the OHM from inverse bonds now and re-mint later if they're really needed for something.

Not against the initiatives you mention here, but the best way to go about them is to have a specific, segregated OIP put forth for them.

There's nothing stopping us from using DAO funds (or simply minting OHM) to use as incentives for OlyPro or Odyssey.

Great suggestions. I'll echo abipup. Because we have a dynamic supply, it is actually simpler to just burn the bonded ohm and remint later. Or better yet, use the ohm held in the dao. Love the idea though.

Write a Reply...