I'm all for bringing Olympus to new blockchains, but worried about the current proposal because as @Zeus stated, it currently does not foster protocol-owned liquidity, which is a hallmark of Olympus.
Alternatively, I believe that this might fixed through the usage of Chainlink’s Cross-Chain Interoperability Protocol (CCIP). Like how AAVE V3’s Portal will soon be using CCIP to bridge user’s supplied liquidity, it’s possible that Olympus can use CCIP to bridge Olympus' supplied protocol-owned liquidity.
CCIP Abstract
- CCIP - a universal, open standard for developers to build secure services and applications that can send messages, transfer tokens, and initiate actions across multiple networks.
- Programmable Token Bridge – allows users and smart contracts to send not only their tokens but also commands to the bridge and have it run customized logic around how it interacts with other blockchains
A smart contract from the source chain (i.e. Ethereum) invokes Chainlink's Messaging Router, which will leverage Chainlink Decentralized Oracles (DONs) to securely send the message to the destination chain, where another Messaging Router validates it and sends it to the destination smart contract (alt-chain liquidity).
The programmable token bridge locks up tokens on one chain and mints an equivalent number of tokens on another blockchain. Using the bridge, tokens can be redeemed 1:1.
How CCIP can work for Olympus (roughly):
- OHM is locked up in “Proteus Vault” on Ethereum
- Chainlink DONs monitors balance of Proteus using with Proof of Reserve SC
- After balances are confirmed to be sufficient, Wrapped OHM tokens are minted on target chain
- Using CCIP/programmable token bridge, the Wrapped OHM can be instructed to be deployed onto chain-native liquidity markets
- Users can
- Purchase wrapped OHM that’s redeemable 1:1 for OHM on Ethereum
- Purchase wrapped OHM and supply liquidity to receive LP tokens
- If option B, user can then buy Bonds, by initiating a similar mechanism to receive discounted OHM:
- LP tokens -> Proteus Vault -> Treasury -> Discount OHM -> Proteus Vault -> User
- With this model, Olympus maintains control of protocol-owned liquidity across chain.
Benefits
- New Bonds across different chains to increase treasury income
- New opportunities for assets to directly back the treasury from different chains
- Optimized sOHM yield by aggregating across multiple blockchains.
- Maintain Olympus’ dedication to protocol-owned liquidity
- Strengthen a strategic relationship with Chainlink
Drawbacks
- Timing: CCIP has not been officially released, with an unknown release date. However, with AAVE V3 approved, it could be soon(?)
- Untested: Like the previous point, CCIP has not been tested in the wild. However, Chainlink has maintained a solid reputation for providing highly secure DONs
- Extra effort: obviously, this would require extra SC work to create the end-to-end bridge solution, but would be worth the extra work to keep POL
Conclusion
The above is a rough outline and there’s much more technical depth to this that bigger brains can dive into, but the general idea is that the Olympus treasury can operate as normal with CCIP enabling cross-chain interoperability.
I think that using this sort of approach will keep Olympus’ dedication towards protocol-owned liquidity and at the cutting edge of DeFi. Letting Olympus treasury seamlessly function across chains will enable it to truly be the decentralized reserve crypto asset.