Adding a comment here. MrLoop: I don't agree that Olympus is getting too complacent or bloated, I think being extremely careful about the types of assets Olympus takes into back OHM/be minted to generate OHM is warranted. Especially in the current legal/regulatory enviornment and given my view of OHM as a "crypto-native" censorship resistant asset that can be viewed as reliable and protected from regulatory, legal black swan events.
Regarding CVX as a bond, I was asked to comment on the regulatory risks in the risk assessment provided above.
As I said in my comment about UST, ", I tend to be fairly conservative when considering new assets to utilize to mint OHM. I am especially careful about taking on more and more censorship-prone or regulatory risky assets in to support OHM's backing. My concern is that, over time, the composition of assets backing OHM can reach (in an aggregate share) a significant minority of OHM's backing, increasing smart contract, censorship and regulatory risks to the protocol."
CVX are Convex Finance's governance token, which derives its value from revenue generated from locked CVX. Thus Convex Finance's health is linked to the overall health and longevity of Curve Finance.
While I'm a big fan of Curve, I feel it is one of the most regulatory and legally exposed protocols in DeFi, and in fact is a large systemic risk to DeFi given how much DeFi protocols rely on Curve for their operations. The largest risk is Curve's various liquidity pools, which have large amounts of centralized stablecoins, including BUSD, USDT and USDC.
If Curve experiences a black swan event in that USDT or USDC are censored, or USDT is found to be financially non-viable, this would have various knock-on effects in DeFi, which could not only lead to a multi-year DeFi bear market, but make Curve a non-functional entity.
Your view of whether or not a regulatory/economic black swan event in DeFi caused by Curve will impact your view of whether utilizing CVX to bond OHM is a good idea. If you think this possibility is low to non-existant, you'll view CVX as a relatively low-risk asset.
If you view CVX has highly exposed to this scenario, then you'll view it as a high-risk asset.
In terms of securing CVX to control CVX's governance, I view this as a short-term strategic move, given the uncertainty of DeFi in the face of increasingly harsh stablecoin and AML/KYC regulation that is coming down very shortly for stablecoins, expecially given recent moves by the U.S. Treasury to dis-incentivize peer-to-peer transactions and the FATF guidance which looked at stablecoins carefully
Should Olympus Take on CVX Bonds?
I view CVX as a high risk asset in this context. I understand the value of acquiring CVX from a short-term strategic perspective, but would recommend putting a much lower target (3-5% of RFV) so that 10% of OHM's backing is not vulnerable to the legal, regulatory and censorship risks outlined above.