- Edited
Policy Report for November 2021
Overview
Over the last month, the Policy team has carefully reviewed market conditions and has been reducing overall bond capacity in light of our stable market cap. Market cap stability has allowed liquidity to catch up and the Policy team has focused this liquidity on the OHM-ETH pair.
This strategy of tightening capacity has had a minor impact on the overall runway, which now stands at about 380 days. The DAI bond capacity is currently being increased to stabilize the runway.
In addition, the Policy team has been working in conjunction with the Treasury team to implement long term strategies that increase non-bond revenues in order to support protocol operations and positively impact the runway. Upcoming reports will show revenue generated by liquidity provision and other revenue generating activities.
Current Reward Rate: 0.298%
The policy team continues to recommend that the reward rate remain at 0.298% in line with the OIP-18 framework.
Bonds Capacities
Over the month of November, the treasury has accumulated an additional $266M (at current price) of assets through its bonding program. Total daily bond capacity is currently at $6.6M. The last month has also seen community votes to add OHM-wETH and WBTC bonds. OHM-wETH bonds are live and $118M has been bonded so far. WBTC will go live as soon as the smart contracts are deployed and activated.
Strategic Policy Considerations
Over the month of November, the Policy team discussed the following issues:
Maintaining the balance of Treasury assets utilized to back/mint OHM and continuing to favor assets that are crypto native and highly decentralized/censorship resistant
Acquiring and leveraging strategic assets, which has begun with CVX bonds
Communicating Olympus’ overall strategy, especially as the focus moves from bootstrapping (high APY), to revenue generation and long-term protocol sustainability
Addressing the specific steps being taken to make Olympus’ DeFi’s reserve currency, and how to communicate this activity and the evolving strategy to our community
In addition, from a strategic perspective, it is Policy’s intention to:
Expand Olympus’ current (conservative) strategy of minting OHM using stablecoins with the addition of non-pegged assets. This is to provide greater flexibility in how treasury stablecoins are deployed for yield as well as relying less on the acquisition of stablecoins to extend the runway. We are currently working on proposals related to this strategy.
Implement strategies that enable Olympus to increase the contribution of non-bond revenue to protocol operations and sustainability
Links to more information, further discussion and new proposals
Live Policy Dune Dashboard
#policy channel on Discord
New proposals in the Forum
OIP-41 - Launch Olympus Incubator program
OIP-42: Insurance coverage for smart contracts - rewards distribution
OIP-43: Launch CVX Bonds
OIP-44 Implement Lobis as a governance arm of OlympusDAO
OIP-45: Proteus
OIP46 - Implement [REDACTED] as an Olympus Branch
OIP-47: Olympus Stopgap Budget Proposal
OIP-47A: Amendment to Olympus Stopgap Budget Proposal
OIP 48: Additional DAO Swap with Tokemak
OIP-49A: Olympus Give Lighthouse Partnership with Gitcoin (Amendment)
OIP-50: How the DAO Should Handle Charitable Donations
OIP 51: Strategic Asset Whitelist
OIP 52: Add UST to the Treasury
OIP-53: Execute DAO swap with Frax Finance
OIP-54: Stablecoin Farming Amendment
OIP-55 - Olympus Grants Program
Ongoing forum discussions
Market Making Proposal from GSR
Ongoing snapshot votes
OIP-50: Ban charitable donations using DAO controlled funds
OIP-52: Add UST to the Treasury
OIP-53: Execute DAO swap with Frax
OIP-54: Stablecoin Farming Amendment