• Proposal
  • OIP-39: Fund Tokemak tOHM Reactor with DAO Treasury OHM

Summary: Olympus has been awarded a Tokemak liquidity reactor as a result of the C.o.R.E voting event, which will initially provide up to $18 million in additional liquidity to OHM. Given that most OHM holders will prefer to remain staked in sOHM rather than LP in the tOHM reactor, the protocol should seed the reactor with OHM from the DAO treasury.

Motivation: Following the C.o.R.E event, Olympus executed a DAO token swap with Tokemak. Tokemak will use the OHM as a reserve for tOHM. Olympus will use the TOKE to serve as a liquidity director by staking it in the tOHM reactor. This will allow Olympus to initially direct up to $18 million in liquidity (e.g., OHM-ETH), though this amount will expand quickly. The OHM in the tOHM reactor will earn TOKE rewards that, while attractive, will likely lag behind OHM staking rewards at scale. As such, most OHM holders will prefer to remain staked in sOHM. The Olympus DAO treasury holds approximately 715,000 OHM as of the time of this writing. Utilizing DAO OHM holdings to seed the reactor would require a de minimis contribution with an outsized impact: the DAO would provide incremental liquidity to OHM while earning more TOKE.

Proposal:

  1. Utilize ~9000 OHM from the DAO ( approximately 1.2% of the DAO OHM balance) to seed the tOHM reactor
  2. Monitor reactor capacity and add OHM from the DAO as appropriate

Vote:

For: Use DAO OHM to seed the tOHM reactor

Against: Do nothing

*Note: This proposal was edited to correct for the amount of OHM required. A new snapshot vote will be created for avoidance of doubt.

Informal Poll: Should the DAO seed the tOHM reactor?

I support this, and adding some TOKE to the treasury excess would be great.

100% go for it. Toke is an incredible opportunity to:
1: Activate (dormant) OHM in treasury
2: Seed OHM-ETH pools without bonds

Definitely in support, as it will be a tough sell for OHMies to unstake and stake in TOKE for relatively less reward $'s.

Absolutely for this. Big fan of Tokemak and the closer we are to them the better.

wait isnt this proposal for the bera dao collateral?

Directionally seems to be a no brainer, minimal marginal cost with ample benefits (i.e. treasury diversification/expansion, liquidity thus income raising). Magnitude-wise, want to ask (1) the rate at which we are earning TOKE and (2) how much incremental liquidity we are raising with this 900 OHM. Thank you! @JaLa

  • JaLa replied to this.

    MiaoShi

    1. Assuming we are the only LP, we'd be earning 700 TOKE per day (~$42,000 at today's prices)
    2. Incremental liquidity of ~$18mm to start.

      Hi all, there was a typo in the original post that I will be correcting. The amount of OHM is 9,000, not 900. The dollar amount of $9M remains the same. Sorry for any confusion.

      Providing liquidity on Tokemak will bring large numbers of new Ohmies. This supports the Ohm protocol and Toke is a phenomenal asset to hold. I found Ohm because the Tokemak DAO voted it so highly….I just bought a handful of Ohm before I had any idea of the staking. In that regard, I think many Tokemak users will be guided right into Ohm, as I was.

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