Thank you for your thoughtful feedback and for highlighting important considerations regarding our proposal.
Regarding the operational overhead concerns, we acknowledge the significance of managing the position long-term and the potential impact on Olympus' on-chain accounting system. We believe the minting process is straightforward, minimizing the operational complexity.
However, we are open to exploring this further and would appreciate any insights from Oighty and Jem, especially regarding the risks of adding new assets to the treasury.
Your apprehension about treasury yields in the context of on-chain yields and Maker governance fluctuations is valid.
To address this:
The holding requirement for our proposal is only six months. Post this period, the DAO could reassess and potentially reallocate reserves while retaining the SUP allocation. This flexibility ensures we can adapt to changing market conditions.
StakeUp is designed to occupy a niche similar to high-trust stablecoins like Circle/Tether but in a completely decentralized manner that value-shares 100%. This approach is akin to a traditional finance equivalent of a T-bill ETF. While there might be times when other yields are more attractive, our product's inherent low risk, coupled with its immutability, permissionless nature, and censorship resistance, should maintain its appeal. Even if the yield becomes less attractive for OlympusDAO after six months, we anticipate that the SUP token will retain value. It can serve as a stable pair in liquidity pools with other trusted stablecoins due to its stable nature and low economic risk.
- Furthermore, $SUP gains all protocol revenues from system fees. As one of the first large holders of $SUP, OlympusDAO will accrue a significant amount of protocol revenues. Lastly, if the DAO wishes to chase higher yields, the stTBY-3crv pool will be heavily incentivized by $SUP
- If this becomes purely an economic negotiation, we could also consider offering SUP incentives to an ohm-paired stTBY pool. However, this may introduce additional operational friction and be undesirable as a result. But the option is there.
- Further, StakeUp's sister protocol, Blueberry, is launching with an OHM lending market. This lending market will already be incentivized with over $50k of BLB tokens as a good faith effort, simply because the core team likes the coin and the folks here. There is no expectation of liquidity contribution from OlympusDAO, just a good option for ohm holders to farm.
As for the allocation aspect, your preference for an airdrop to OHM holders/stakers/cooler borrowers is noted. With OCG on the horizon, we understand the need for the treasury to avoid managing governance tokens directly. Our proposal aims to align with this vision while ensuring the treasury's long-term health and sustainability.
We eagerly look forward to delving deeper into the operational concerns and invite further dialogue with the aforementioned DAO members. Your insights are invaluable, and we believe that collaborative discussion can lead to a mutually beneficial outcome for all parties involved.