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  • Alchemix x OlympusDAO Partnership: alUSD-3crv Bonds

I think this is a great idea and it has my support.

On first discussions with alUSD, I was a bit skeptical about OHM-alUSD bonds if we pursued a Sushiswap pool... but accumulating Curve pool tokens seems to be a really good idea. This is much more natural of a fit for the Treasury-as-a-service idea. The downsides as mentioned are incorporating exposure to centralized stablecoins like USDC/USDT. But it can also be viewed as getting exposure to Curve, since most of its value is in stablecoins.

sisyphus1337 Agreed on sUSD. I think after reviewing this proposal we should explore the liquidity source that Synthetix most values for sUSD. For my previous proposal I had been thinking along the lines of OHM-DAI bonds for OHM-sUSD SLP tokens. But this proposal makes me think it could be more useful if we accumulated the sUSD-DAI/USDC/USDT pool tokens on Curve. These tokens also accrue 1.9% SNX rewards btw

    fantastic synergy move. Love both projects and it makes sense

    as a delegate of the Titanium Reinforced Graphene Nanotube Composite ADAMANTIUM hands, I am all FOR this proposal. LETS DO IT

    I love this idea. I think it's a great synergy between two awesome protocols. If Olympus is able to bond enough LP and create a strong floor of liquidity, that would be super valuable for Alchemix. On the flip side, Olympus gets trading fees, a diverse set of stables, and a diverse set of governance tokens to add to its treasury. If this is successful, it could be done with future curve pools like alETH/ETH and alBTC/BTC which would increase the diversity, fees, and rewards of Olympus' DAO and lock up a lot of liquidity for Alchemix. Another great win-win.

    Great proposal Ja.

    heck yeah for it. Good to get some ALCX(future rev. stream)

    100% support alchemix is awesome

    I'm strongly against this at this point in time.

    The more popular ALCX gets, the longer its loans will take to pay off. A product in crypto shouldn't get worse as it grows in popularity. Everyone using it is fighting over the same yield.

    alUSD is not equal to $1 over long time frames. When the transmuter makes you wait to get dai, that means your alUSD was not actually worth $1. That could be a problem for OHM given certain market conditions.

      bone Everyone using it is fighting over the same boosted yield*.
      The yields approach that of the underlying yield aggregator over time. This boosted yield should just be viewed as a bonus IMO.

        bone Notwithstanding the first point about the yield, your concerns are well-founded - the alusd peg risk is real, as outlined in the proposal. Can you elaborate why the peg is not equal to $1 "over long time frames"?

          7 days later

          bone 👀 What @JaLa said, what you mean?

          I'm for this proposal. Great work Ja!

            8 days later

            bone I'm not certain that the 1:1 won't hold in the long run.

            It's true that the alUSD redemptions via the transmuter depend on not everyone doing it at once, since the time to redemption depends on what % of the alUSD staked in the transmuter you have and what % of the transmuter's yield you can be redeemed with. However the alUSD3CRV pool is sufficiently liquid - particularly while rewards last - to ensure people exchange alUSD <> stables in the open market, instead of rushing to the transmuter. Alternatively people can repay their loans with alUSD or Dai, or liquidate a portion of their collateral. Only in a true bank rush, where everyone rushes to the transmuter, will it not maintain the peg, in my assessment.

            I think this is a great proposal @JaLa and believe it would do good for both $OHM and $ALCX since both are vibrant communities of upstart protocols that both need broader ecosystem adoption of their tokens / stables.

              Following the release & light tragedy of alETH, I am really enthused by the Alchemix community.

              However, I think they need a bit of breathing room to adjust for what happened & keep the system going.

              I am still a fan of alUSD-3crv pools in Olympus, but we may want to ice this for a little while to give their team some time.

              a month later
              kschan changed the title to Alchemix x OlympusDAO Partnership: alUSD-3crv Bonds .
              4 months later

              This is a GREAT ideal/ We have a large community of people who want to make a difference in this world. Stand by this project and let the WORLD show you what is possible when people from around the world come together for a cause this strong! All we need is a chance to prove ourselves and for someone to believe and us and give us that opportunity.

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