Decentralized Finance faces a centralization issue.
Although innovative and highly efficient, protocols and mechanisms such as bribes, Flywheel locking tokenomics, and gauge voting have led us back down the path towards centralization.
When the richest users hold all the power, these protocols do not belong to the people.
Lobis is here to change that.
A basket of governance tokens backs the Lobis token, with the project leveraging knowledge and experience from OlympusDAO. By teaming up together, we designed a form of the Olympus bonding mechanism to fight back against this wave of dangerous centralization and propagate the use of OHM as DeFi's global reserve currency.
Lobis itself does not lock any tokens but instead delegates them according to governance. In this way, we take power from the whales and return it to the community.
We do not need VCs to back us; we did not raise, there is no team allocation, there is only Lobis, OHM, and the community.
Together with the OHMies, we aim to bring decentralization back to DeFi by backing the vision of OHM as a decentralized reserve currency and providing a solution to the issue of whales gaining control over other protocols due to imbalances in financial wealth.
By supporting our proposal, you will help to:
Position OHM to become the most widely used currency in DeFi by becoming the base pair for governance tokens such as CRV, FXS, oSushi, and more.
Generate fees for Olympus DAO and provide liquidity through direct integration into OHMieSwap.
Generate income for the Olympus Treasury in the form of governance tokens with every bond.
Increase Olympus Treasury directly by way of interest-free lending to Olympus of our governance token - LOBI.
Trigger an Airdrop to the Olympus community in the form of LOBI.
Leverage locks and boosts to generate the best yield on Olympus’ treasury assets.
Achieve significant exposure and governance over the entire DeFi ecosystem.
Enable projects that implement a Curve style locking mechanism to become more decentralized, reducing the existential risk of decision-making bottlenecks.
Protocols fighting against centralization
One year ago, Curve revolutionized DeFi with their veCRV tokenomics, which enabled a fast and efficient decentralization of the Curve DAO.
The high inflation of CRV was efficiently offset by providing benefits to token holders who chose to lock their tokens long-term.
These tokenomics have worked so well that more CRV is locked than are minted each day when writing, effectively turning this once inflationary asset into a deflationary one. (3,3)
However, protocols such as Yearn, Stake DAO, and Convex have since circumvented these tokenomics by building strategies that lock CRV to enable their users to attain boosted returns without individually locking CRV.
Despite having good intentions of providing high yield for their users, this protocol versus protocol situation has encouraged the centralization of some of DeFi's most significant projects.
The Curve Wars are well documented, but until now, nobody has offered a solution.
DeFi has no time for internal power struggles. Regulation and centralization belong to Traditional Finance, and we must not return to those old ways.
Once proven, the Lobis mechanism will enable other protocols to become more decentralized and protected from the dangers of regulation that apply to centralized entities.
Lobis enables projects to protect their decentralization utilizing locking mechanisms while ensuring that users can participate in governance and propagating the use of OHM as DeFi’s global reserve currency.
Lobis and Olympus DAO work together by creating a virtuous circle between users providing liquidity and protocols creating value. Thanks to Olympus’ technology, Lobis will accumulate lockable governance tokens and therefore protect the underlying protocols.
Lobis is here to ensure a fair market and thus is independent and protocol agnostic.
By combining delegation, locking, and holding, Lobis, and OHM can use boost/liquidity-as-a-service offers while maintaining governance rights. It will allocate its governance tokens to different protocols allowing an optimized locking with a fair approach and ensuring decentralized governance. The Lobis community will use this power to weigh on key governance questions when protocols need their help.
Lobis will be a governance guardian of DeFi, with the power to protect protocols from centralization and make OHM the reserve currency for DeFi.
How will Lobis achieve its purpose?
Lobis will create a reserve of governance tokens from protocols using Curve-like tokenomics by offering bonds to fulfill its purpose. The first tokens included in this reserve are CRV and FXS, with AAVE, Sushi, and others to follow.
In parallel, the LOBI (Lobis’ governance token) will be paired with OHM on Sushiswap, and liquidity bonds will quickly acquire liquidity bonds to create deep liquidity.
Similar to Olympus v1, users can also stake their LOBI and receive sLOBI.
When a bond enables to increase the reserves of the DAO, a new LOBI is minted and distributed to sLOBI holders. The minting rate is 1 LOBI for each $1 worth of governance token or LP token bonded. The contracts use Chainlink price feeds to calculate the amount to be minted.
At first, Lobis will accumulate CRV and FXS and lobby to incentivize whitelisted protocols to move towards fairer, more governance-friendly locking mechanisms (today, neither Yearn, Convex, nor Stake DAO allows CRV stakers to keep their Curve governance rights).
As part of this goal, Lobis will offer bonds for CRV and FXS, with AAVE, Sushi and others set to follow.
Once those whitelisted protocols have implemented a viable solution, Lobis will support them by fairly allocating its reserve governance tokens and acquiring liquidity bonds to support the peg of their wrapped tokens.
When more protocols implement Curve-like tokenomics, Lobis should naturally accept to launch reserve bonds with their governance tokens, but ultimately, the community will determine the next steps.
What’s in it for the OHMies?
Lobis focuses on governance and propagating OHM as a currency, while Olympus will accumulate LOBI tokens without further emission of OHM, increasing its backing.
Lobis will also enable Olympus to get access to the best yields in DeFi for its treasury assets and potentially gain the ability to participate in the governance of the ecosystem.
The Olympus team has guided Lobis with their experience and expertise in design to support the project’s launch. The project team will build and maintain Lobis under the stewardship of the OHM team and plans to integrate the OHMies as well.
Thus, Lobis is inexorably linked to Olympus by code, ethos, and long-term vision. This is not possible without the support of the OHMies, and to that end, we present the critical benefits to (3,3):
Facilitating the use of OHM as the sole global reserve currency of DeFi by pairing governance tokens with OHM for its liquidity. Lobis will acquire a considerable amount of OHM through liquidity bonds with a positive impact on sOHM APY.
The OHM community and treasury will get access to the best yields available in DeFi for their treasury assets through the governance rights on Lobis (on Curve, Frax, and in the future Sushi and others). If required, we will also bootstrap the acquisition of CVX for OHM per the most recent governance proposal so that Olympus can get governance power over Convex without harming its backing per token/RFV.
We will directly contribute income for OHM via Lobis bonds, with the Olympus’ treasury set to receive 1.1% (1,1) fee for every reserve or liquidity bond sold by the DAO.
We will become active participants in the governance of Curve, Frax, SushiSwap, and other relevant protocols.
The Olympus community will receive an airdrop at Lobis’ launch to bind together the communities.
Lobis will lend LOBI tokens with a 0% interest rate to Olympus, and Olympus will pair them with treasury OHM to provide liquidity on Sushi and Ohmieswap.
This collaboration will be mutually beneficial for Lobis and Olympus. The two protocols are complementary, with Olympus focused on building the sole decentralized reserve currency and Lobis, the decentralized governance regulator. Together, our two DAOs will provide the infrastructure of a fair decentralized financial system.
Who is the team behind Lobis?
Our team has a long track record of launching and maintaining projects in the ecosystem such as Curve, Aave, Frax, Stake DAO, and crafted Lobis under the stewardship of OlympusDAO core members.
We are a group of builders under the stewardship of OlympusDAO core team members united by a passion for maintaining decentralization within the DeFi ecosystem. We invite you to join us and help shape the future of this proposed governance arm of OlympusDAO.
In decentralization, we trust.