Policy report, October 2021
The Olympus protocol treasury and protocol owned liquidity are rapidly expanding. Runway at the current reward rate has been increasing and is currently over 400 days. There is a continuous high demand for bonds and, with a runway of over 365 days, bond capacity has increasingly been directed to liquidity and non-pegged assets.
Reward rate: 0.2975%
The policy team continues to recommend that the reward rate remain at 0.2975%. The policy team sees no market indicators that would prompt a recommendation that it be changed. Note however, that even though bond revenues are significantly extending the runway, at this time we do not intend to recommend the community deviate from the reward rate framework codified in OIP-18.
Total daily bond capacity is currently over $12M. In the period there have been community votes to add OHM-wETH and WBTC bonds. OHM-wETH bonds are already active and WBTC will go live as soon as the smart contracts are deployed and activated.
Strategic Policy Considerations
Although much of the policy team’s focus is on day-to-day tactical decisions related to OHM’s current and future status, our actions are informed by key strategic imperatives. These include engaging in activities that help boost OHM’s status as a decentralized censorship-resistant long-term reserve currency, supporting OHM’s market stability in the face of an ever-changing macro and micro crypto environment, and working to ensure OHM’s assets are being used in ways that drive maximum value for OHM’s holders/stakers. In future monthly reports we will touch on how our decision-making is influenced by these strategic considerations.
Links to more information and further discussion
Live Policy Dashboard
#policy channel on Discord
Proposals section in the Forum
OIP 32 - Reform Bond Capacities
OIP-35: Add wETH to risk free free value of treasury assets
OIP-36: Add WBTC to the Treasury
OIP-37: Launch OHM-ETH Liquidity bonds
Ongoing forum discussions and votes
OIP-40: Increase ETH allocation target to 33% of Treasury RFV