Summary

At Econohmic Labs we believe OHM is the future of decentralized finance and we want to pave the way to this future.

Our plan is to build applications and services that support the growth of the Econohmy. 

Our seed round goal is $3.5m. The use of proceeds will be as follows:

  1. 1.75m engineering/infra

  2. .5m corporate compliance/legal

  3. .25m marketing/pr

  4. Up to 1m gOHM (Our goal is to consistently be in the top 3 entities of gOHM ownership)

Seed funding will be provided by outside investors currently uninvested in OHM.

The Olympus community basically gets 3 things:

  1. A new active OHM holder

  2. Utilization of OHM and partner protocols

  3. A 2.5m investment in operations and engineering  developing tools focused on the utilization of OHM

who

Let OlympusDAO focus on OHM. Econohmic Labs will bring it active utilization.

Our team of founders and advisors are seasoned with over 1B in exits in Web2 and significant experience building regulated businesses. We believe this experience will enable us to build a company off-chain to empower the on-chain economy. Our team consists of 50% engineering / quants and 50% business development/marketing/regulatory/operations professionals. Our founding team and advisors are long time Ohmies with long term conviction in what the project is building. This is not a short term bet for us, but a bet the farm bet over the course of a decade.

Why

An on-chain currency that is a stable, downside-protected asset with inflation protection, that can be used as a unit of account and is backed by a treasury has incredible implications for DeFi and, ultimately, the world at large. We are believers that the story of Olympus has not even begun yet, but as Zeus has said, the game is already won. 

The idea of Econohmic Labs is to incubate a variety of business lines that use OHM as its core monetary energy. The first business line will be Econohmic Loans. 

How

A traditional c corp business focused on ensuring regulatory compliance with OHM as it’s base collateral leveraging other Olympus partners like Vesta to bring the power of Defi to the real physical world. The goal of this project would be to leverage OHM as a collateral asset and create a cheaper cost of capital in the real world than LIBOR rate capital. We would draw upon a variety of web3 lending protocols to borrow at rates significantly cheaper than the current LIBOR rate. We would then loan this out to institutions (in exchange for collateral) who want a cheaper cost of capital in the real world to generate yield (factoring, community banks, lending platforms). As a matter of practice Econohmic Labs will NOT lend to crypto companies but will only lend to companies focused on other verticals (Retail, Advertising, Medical). The unlock here is bridging defi to the real world which will unlock scale for defi and bring in new capital to the Econohmy. OHM is the real unlock as it enables a native on-chain asset that will grow purchasing power over time, thus enabling significant capital efficiency.

By focusing solely on the Olympus Econohmy, Econohmic Labs is asking the community for matching funds dollar for dollar based on our outside capital raised. By the Olympus community betting on Econohmic Labs, outside capital will be more comfortable making the bet themselves.

  1. For Econohmic Loans, Econohmic Labs is asking for a reserve bond so that we may acquire the initial 1M in OHM without major slippage or price impact. This will also ensure that the 1M goes directly into the Olympus treasury which we view to be a win-win for the community and holders as backing will increase as a result of this buy. As we will not be selling this OHM, these reserve bonds will not create sell pressure. 

  2. Econohmic Labs will work with OlympusDAO to always have a subset of reserve bond capacity at market rate discounts (once we are back to a premium and it makes sense for reserve bonds to be running market wide) to continue to funnel outside capital from loan yield into the Olympus treasury. Again the goal here is that this is long term holdings that will be verifiable on chain. 

Asks

  1. Designate Econohmic Labs as a partner of OlympusDAO who can get first looks at new products and features launched by OlympusDAO. This does not mean Econohmic Labs will get immediate access but will work collaboratively with the DAO to get access to products where it makes sense in order to create value for all stakeholders (Protocol, Holders, Econohmic Labs, Partner Protocols)

  2. Whitelist Econohmic Labs for a 1M capacity reserve bond for our initial OHM purchase

  3. Commit to ongoing dialogue with Econohmic Labs for an ongoing reserve bond once the 1M bond is exhausted to bring ongoing capital in from Econohmic Labs products. While we understand this is not a firm commitment we have a desire to continue evolving the partnership past this first phase and want the community to be aware and on board.

Polling Period

The polling period begins now and will end on Friday Aug 26th. Afterwards, this OIP will be added to Snapshot for a final vote.

tex changed the title to OIP 113: EconohmicLabs .

Really excited to see folks with strong business minds bolt on to the model and extend the reach to untapped markets. This is true retail play that creates a healthy bridge where there is none today. Full support for the folks behind this endeavor as well.

For sake of clarity, all numbers in the above proposal are in USD. When the proposal was written Flex Loans were not a product that had launched and we now realize this could be confusing

    I'm generally for this proposal - but I must ask, why purchase via a reserve bond and not via a LBP similar to how TRIBE was "going" to do before they blew up?

      Sounds good - is there a public face to this? Legal entity, doxxed team etc?

      Also…permitting this bond hands over a large portion of DAO control to a single entity

        Sadinoel Good afternoon Sadinoel, Econohmic will be operated as a traditional C Corp and a Doxxed team post fundraising

        dr00 Hi dr00, We would like these funds to go into growing the OHM treasury. In addition we have no intent to sell the $1m which we would bond.

        I'm not sure I follow the logic of putting the protocol even further below backing by making the purchase through a bond. At the very least, anyone looking to acquire OHM should have to market buy below backing and only have OTC access when above backing.

          I'm with @pottedmeat on this one. You're asking to give an undoxxed team a huge chunk of ohms funds at less than mates rates.

          Unmask first so we can see your credentials, your burn plan should this venture fail and your pledge to not interfere in any dao votes.

          Or yunno, buy it on the open market.

          Sorry just my personality, but cant stop thinking Trojan Horse. Part of the reason I stay invested here is the conservative and cautious way our community approaches treasury investments. Also how does this affect governance of the DAO.


            dio I imagine they become a super bloc, voting in their interests each time. Much as the shadowy 'Bancor Foundation' does. No thanks.

            Currently voting against because I don't know why you should acquire OHM with discount rn when it's below backing. Also don't like we're kinda blind and don't know anyone who's behind the team.

              The real-world legal entity we form that sits on the board of Bond Protocol, should have air-tight terms with this real-world legal entity (if this proposal passes) that prevents it from acting as a super-bloc to act in the interests of its shareholders (profit-driven motives no doubt) against the majority consensus of the DAO.

              dio Appreciate the concerns. To be clear our intentions are good and aligned with the goal of making OHM the next reserve currency of Defi. So couple things, when we wrote this proposal, we were above backing. We think its fair to not be able to purchase a reserve bond below backing and can make this the floor in the final proposal that goes to snapshot. As of today, a 1M buy would make us the 29th largest OHM holder. We would hardly have enough voting power to have any more control than any other DAO or individual involved in the project. This is also an option to bond, we have to go close the capital and we wanted the DAOs support before we did so. The reality is having the DAO vote on this gives us the credibility to bring in outside capital during a bear market. The 2.5m in engineering and product is to build applications and utilities that unlocks value for all OHMIES. Once we close capital and before we execute the bond, we will ensure we are doxxed. The DAO can not turn on the bond if we don't do that. This is not a trojan horse, there is no ill will. We are super bulls when it comes to OHM and what the potential of the project is. We want to enable it. We are looking at this OIP as an alignment exercise.

                This proposal would be a lot stronger if you guys had finished fundraising, was fully doxxed etc…but you probably need this OIP cleared as part of your marketing to VC's. I get it.

                Unmask first (I swear, if this is you Dani..)

                  EconohmicLabs Appreciate the concerns. To be clear our intentions are good and aligned with the goal of making OHM the next reserve currency of Defi. So couple things, when we wrote this proposal, we were above backing. We think its fair to not be able to purchase a reserve bond below backing and can make this the floor in the final proposal that goes to snapshot. As of today, a 1M buy would make us the 29th largest OHM holder. We would hardly have enough voting power to have any more control than any other DAO or individual involved in the project. This is also an option to bond, we have to go close the capital and we wanted the DAOs support before we did so. The reality is having the DAO vote on this gives us the credibility to bring in outside capital during a bear market. The 2.5m in engineering and product is to build applications and utilities that unlocks value for all OHMIES. Once we close capital and before we execute the bond, we will ensure we are doxxed. The DAO can not turn on the bond if we don't do that. This is not a trojan horse, there is no ill will. We are super bulls when it comes to OHM and what the potential of the project is. We want to enable it. We are looking at this OIP as an alignment exercise.