Summary : Transition from inverse bond sales to protocol buying ohm at any time

Background: I was in favour of OIP-94, but there is a question in detail. In the agenda, we chose a way to reduce the selling pressure, but I think increasing the buying pressure is more helpful price stability. This is because it is more practical to "buy Ohm by the protocol at any time every day" than to "come here and sell if you want to." I think it is more inconvenient for sellers to check the discount rate in real time and sell it. Currently, OIP-94 has been passed and inverse bonds are sold, but the discount rate is sometimes negative because the price cannot be immediately followed. We increased our daily sales from $200,000 to $400,000, but I don't think it's a fundamental solution.

Implementation Details:
1. The protocol buys ohm three times a day at any given time, $100,000.(Total of $300,000)
2. Stop selling the current inverse bond.

protocol buys ohm directly

I'd like to suggest an option for a blend of both inverse bonds and direct market buys.

Inverse bonds to capture market sells before they happen, and direct buys to create upward pressure towards the 120d MA without the inefficient recycling activity needed for it via inverse bonds.

    Love Abi's idea.

    I think inverse bonds were a great way to introduce some of the mechanics that will come into effect with ranged stability (paper2). They can continue to exist, and hopefully, they will attract more organic sellers who are looking to work around trading fees. Inverse bonds behaving this way is in part good news too: it means there are not as many sellers as one might've expected, which I think sets the precedent more a more direct approach to market operations. 🙂

    abipup This is basically what we have to during the interim period between "walls" and no walls. Atlantic options on Dopex come to mind when they are available, but direct market buys are even better.

    Rethinking this though, the direct market buys would put funds back into the LPs for arb opportunities though?

      arnoldcogwell47 right, some arbing would need to be done unless we just add the right amount to each protocol owned pool from the start.

      Either way, implementation wise this will be a bit tricky as we'd for sure need to develop smart contracts to do this automatically. Asking the MS to do this would be a nightmare.

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