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  • RFC: Clearing House Partnership with Vendor Finance

0xTaiga love this well-structured proposal and the very reasonable ask of 100k to 500k against gOHM. This seems like a very good proposal to me.

    woofwoof So as I understand it, the yield from the Alchemix self-repayment comes from the ARR, which would mean that your OHM collateral/loan position would be redeemed with OHM, rather than gOHM. This means that the inflationary yield accrues to OHM in the future, when you eventually recover it from the Alchemix vault. You can presumably swap and deposit alOHM-OHM to create up to 2x leverage, but the end result will be realized in future OHM (which by its nature does not inherently include the ARR).

    In contrast, a Vendor pool would accept gOHM as collateral in exchange for DAI to be used now. This allows the borrower (community) to continue to realize the ARR inherent in the gOHM wrapper as well as to pay an interest rate to borrow DAI (and use that for whatever, including creating leverage by buying gOHM and borrowing more DAI - the maximum ratio will equal 1/(1-LTV), where LTV is set by the lender, in this case, the OHM treasury).

    Does this make sense?

      Great proposal. The deal between Incubator and Vendor fell through because of changes in the DAO and Incubator team specifically. The team and product at Vendor were viewed in a very favourable light by the Incubator team at the time.

      I would personally love to see this proposal pass. $500K is a reasonable initial allocation.

        kleb Thank you for this clarification! It was a pleasure working with you while it lasted!

          0xTaiga Very much in favour of this proposal.

          A 500k pilot budget for mainnet deployment will be a great start in my opinion to get the ball rolling and see the level of demand. Then hopefully once cross chain native OHM is available in the coming months the possibilities will be endless.

            5 days later

            @0xTaiga what would be a reasonable timeline for a mainnet launch for Vendor Finance?

            My strong opinion is that we can bring forward a combined OIP and let the community vote on the two Clearing House options presented thus far - where we can pilot deposits (of some size) in both protocols, one or the other, or neither.

              Don_G_Lover This was my opinion also. I believe Zeus has parked his however after he received clear feedback on audits and is looking at how he undertakes that so there may be delay on that option?

                Don_G_Lover In our case we would need about a week to spin up on Ethereum in our current shape and form. It might take a bit longer if we decide to add the support for the delegation logic of OHM. We would need to contract the Olympus dev team to make sure we are aware of all the nuances and do not miss anything.

                  Shpadoinkal

                  We are currently waiting for the AMA to be scheduled before this goes to the snapshot.

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