Greetings to Olympus.
I’m OneTueKirk, the founder of Volt Protocol, a floating price stablecoin based on RAI but backed by a wide range of collateral assets. Volt is a “friendly fork” and is sharing 6% of its governance token VCON with the Reflexer community in exchange for Reflexer Labs’ permission to use the RAI code and their assistance.
We’ve been pursuing close cooperation with partners, and I'm excited to share that we are the first protocol to join the Olympus Incubator program. When setting out to build a new product in DeFi, I believe cooperating with existing DAOs is the best approach.
You may have seen a similar proposal I posted in the Fei Protocol forums. By cooperating with leading decentralized stablecoin issuers, we will largely avoid the need for conventional liquidity mining in which most participants farm+dump.
Instead, we’ll engage with DAOs who have long term alignment in our mission and share ownership of the Volt Protocol among those best suited to govern it, existing community-governed projects.
Volt has joined the Olympus Incubator on similar terms, allocating 6% of the VCON supply in exchange for support, advice and priority access to Olympus’ upcoming liquidity products for launch. This partnership will allow Olympus to become a key player in the Volt Protocol and help Volt become one of the best ways for Ohmies to be able to borrow against their staked OHM.
As a decentralized debt backed stable asset with native yield (funding rate), VOLT will also become an ideal choice as an Olympus treasury asset.
Here is the current breakdown of VCON tokenomics:
40% of tokens reserved in VCON DAO treasury for future uses such as the bond program.
30% of supply to partners. In the spirit of egalitarian cooperation, each partner DAO or community will receive the same 6% of the VCON supply. In the future, we plan to implement VCON rewards such that partners with more skin in the game (such as VOLT on their balance sheet) can obtain an increasing stake in the protocol.
20% for compensation of current and future contributors
10% for $2m seed round from angel investors and other early supporters including the Rari Infrastructure Task Force and Grug Capital
The core elements of the incubation are listed below:
Launch and operational support from Olympus.
Extensive use of Olympus Pro
Like MakerDAO, VOLT will keep a certain amount of reserves as a "surplus buffer" in case of liquidation failures to ensure VOLT's value is maintained. Unlike MakerDAO, we plan to raise this reserve up front with an Olympus Pro bonding program
Take advantage of Olympus’ upcoming launch products to bond in a supply of VCON/gOHM
Integration of current and future Olympus products into VOLT
VOLT will support gOHM as collateral at launch
after Olympus v2 release, can support tokenized bonds as collateral, which will benefit not only OlympusDAO but all users of Olympus Pro with additional liquidity
Onboarding of VOLT as Olympus treasury asset
- As a decentralized non dollar pegged stable asset partially owned by Olympus - VOLT is a great choice to continue diversifying the Olympus treasury and grow OHM supply. The Volt team will work with the Olympus Policy team to establish a suitable time frame and allocation to bond VOLT and VOLT/gOHM - which will then be proposed to the Olympus community. Volt will incentivize VOLT/gOHM LPs with VCON to build up any initially required liquidity
Control over VOLT credit allocation through VCON
Allocating VCON to Olympus means that in Volt v2, it will be able to direct a line of credit to assets of its choice. This will include PCV assets, preferred Fuse pools, or other opportunities for yield generation. Volt sees OIympus owning VCON being similar to a large central bank taking an interest in a smaller more versatile banking operation.
A large portion of the VCON supply is being distributed to partner DAOs. Volt hopes that this will bootstrap an effective and decentralized community - and see the Olympus community (as well as other partner DAOs) select delegates to participate in VCON governance on their behalf. In the future, Volt expects a “bribe” type ecosystem to emerge around VCON as protocols seek to incentivize VOLT liquidity against their ecosystem assets, much like exists around Curve today.
I will be attending an upcoming AMA with the Olympus community on Monday November 22nd at 3pm PST in the Olympus discord to tell you more about Volt and answer any questions you might have. Please also join the Volt Protocol discord here.