• Proposal
  • OIP-99 - Provide Liquidity on FDT-ETH Pair

Summary:

Support Fiat DAO by providing liquidity on their Balancer FDT-ETH pool.

Background: Earlier this year, Olympus formalized a partnership with Fiat DAO through OIP-72. As a result, a DAO swap was conducted between the two projects, making Olympus one of Fiat DAO’s top holders.

Initially, Fiat used its OHM holdings to bolster liquidity for its FDT token by pairing with (g)OHM but encountered significant routing issues for multiple months, to the point where they finally moved their main liquidity pool to an FDT-ETH pair on Balancer.

Motivation

Policy acknowledges that the infrastructure for partners to utilize OHM to provide liquidity is not perfectly in place today. Mint & Sync, Flex Loans, and Balancer boosted poolsare solutions that are currently being worked on and which Policy believes will greatly improve the attractiveness of OHM as a counter-asset for partner tokens.

In the meantime, as a show of good faith, Policy wishes to utilize a small fraction of its ETH resources to support a partner that has been closely aligned with Olympus since launching. This would increase the size of the FDT-ETH liquidity pool by $120k, which is a 55% increase in the pool size.

A specific benefit to Olympus providing this critical liquidity is that staking the liquidity token will generate significant rewards APY via the Balancer liquidity mining program (currently 100 - 300%, though slightly lower if we were to provide liquidity).

In strengthening our alignment, we hope that once we improve the infrastructure to use OHM as a counter asset, FIAT DAO will reconsider moving its main liquidity pool to an OHM-denominated pair. This will be revisited at a later date.

Proposal

  • Become a liquidity provider on FDT-ETH Balancer pool by utilizing:

  • 5.3M FDT, acquired through the DAO Swap and subsequently staking on FIAT DAO. An additional 5M is currently vesting.

  • 20% of the amount in 1) in ETH. As of today, this would represent using around $24 000 worth of ETH.

  • Policy to reassess this position once suitable solutions for pairing with OHM are made available to partners.

Provide Liquidity on FDT-ETH Pair.

This poll has ended.

120k is very reasonable for a partner.

Building in a bear market at such a consistent pace is really nice to see. This is why OHM will always be around. Send it ladies and gents.

💪

  • z_33 replied to this.

    Seems like a very good utilization of existing FDT in the treasury. The 80/20 balancer pool would require a smaller percentage of ETH which would be nominal. Definitely support making good use of existing funds and helping out a trusted partner, thanks!

    wasnteth yeah and it's only $24k in ETH, rest is FDT (as it's a 80/20 pool)

      z_33 Yeah it's a very resonable LP solution for a partner in the Defi space. IMO Olympus Dao should strive for more of these kinds of smaller partnerships. Really helps build grassroots and a firm base across the epoch haha.

      Keep up the great work as always! I love to see it.

      Send it! Let's keep Fiat DAO rolling, big brains over there.

      Great proposal! Do we currently have a plan as to what we will do with the veBAL we are rewarded for being an LP?

        streetjesus Similar to CVX, we can boost our own pool on Balancer or use it for more partnership activities. Leaning towards the former personally to start.

          I think it makes total sense,
          I also think balancer is a great protocol and we should be utilising it more, this could be a good opportunity to get more exposure into balancer ecosystem…

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