Below is an updated draft OIP. We've taken into consideration the community's feedback, fixed initial errors, and added some additional context. Fwiw we spent over 90 days discussing this with senior DAO members and none of us caught a few errors in the initial draft. A lot has also happened over that 90 day period. It was not our intention to bypass process, we had thought enough comment had occurred before we posted.
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:
.5m corporate compliance/legal
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:
A new active OHM holder
Utilization of OHM and partner protocols
A 2.5m investment in operations and engineering developing tools focused on the utilization of OHM
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. We plan on doxxing post funding, before we leverage the reserve bond that is a part of this proposal.
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.
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. We have a number of partners lined up for this initiative already.
Another business line we are actively working on is Econohmic Onboarding. We have been whitelisted as an early pilot partner for a new Fiat onboarding capability which will allow (initially for US consumers) the ability to instantly buy gOHM on a credit card and eventually automatic DCA. We believe this can bring a whole new group of retail buyers into the Olympus ecosystem.
By focusing solely on the Olympus Econohmy, Econohmic Labs is asking the community for to support us with the following:
- 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. As we will not be selling this OHM, these reserve bonds will not create sell pressure. We are also comfortable with the bond being issued at backing if we are under backing at the time of purchase and at market price if we are above backing at time of purchase. We do not want any free ride from the DAO but given the scale of purchase we would like to minimize slippage/fees. You could think of this as more of an OTC buy.
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)
Whitelist Econohmic Labs for a 1M capacity reserve bond for our initial OHM purchase, subsequent purchases will be conducted as market buys from Econohmic Labs revenues.