In preparation for Cross Chain OHM on Arbitrum One, liquidity pairs must be established to support our presence in this new ecosystem.
Olympus will be bringing the native OHM Token Cross Chain to Arbitrum One. In support of this, pools of liquidity must be established and funded to create a low friction base to build from. Olympus DAO has evaluated the existing landscape and prepared recommendations on how to most effectively position our assets on-chain to support this effort.
Request community approval to establish the following:
Initial POL: Initial Pools will be seeded in amounts not to exceed, 5mm each.
Pool Types: Two pools will be created - OHM/USDC and OHM/wETH
Pool Locations: Balancer (Though discussions and terms with alternative DEX’s are ongoing. Balancer allows us continued exposure to AURA where we have been accumulating governance power).
USDC was selected as the stable pairing asset after evaluating the volumes on Arbitrum One. DAI volume was too low to have it act as a core liquidity pair. There has also been exploration into a potential 3Pool using LUSD in the future. As our presence matures, iterations can strategically be made through discrete OIP’s.
Assets used to assemble this LP will be extracted from existing LP on Mainnet. As of the time of writing, 10m OHM/wETH has been unwrapped, the ETH from which will be used to create the wETH Position. FRAXBP will be unwrapped to create FRAX which will be swapped for the USDC position. Furthermore, creating this liquidity will require a bridging event to occur to get the Non-OHM assets on to the Arbitrum One chain. As of the time of writing, we have roughly $934k of wETH already on chain so the difference will be bridged using a high quality protocol to move assets of size. The USDC will will be bridged as well
OHM will be transferred (Mint and Burned) via the the newly deployed custom Cross Chain v3 Contracts an then LP will be assembled from these assets.