• Proposal
  • OIP 48: Additional DAO Swap with Tokemak

Summary: Swap additional $3mm in OHM from the DAO (~4,000 OHM) with Tokemak for TOKE

Background: Following CORE #1, the DAO executed a first swap with Tokemak. Thereafter, the DAO also seeded the Tokemak OHM reactor to provide additional future liquidity and earn yield farming rewards. See here and here for the related proposals.

Motivation: Given our strong relationship with Tokemak, the burgeoning demand for TOKE as a strategic asset, and the ability to increase the liquidity provided via the OHM reactor, we propose an additional $3M swap. The DAO will stake the TOKE for additional yield (currently 54% APR) and utilize staked TOKE to vote on CORE events and to direct OHM liquidity once live.

Details:

  • Pricing based on 7-day moving average
  • $3M TOKE
  • $3M OHM

Execute Additional $3M Swap?

This poll has ended.

    This swap brings us one step closer to maybe getting a Tokemak+Olympus Pirate radio station. All for.

    I have a feeling that this is not really a good deal looking at it at in mit to long term horizon. Yes I like tokemak and I have reasonably sized bag but I think it is not a good as beneficial for olympus as it is for tokemak.

    staked TOKE will yield ~55% over the next year while OHM will yield ~8k% you can probably guess what my first argument is about… Secondly even tough tokemak has a huge potential on changing the game, the product is not really been active and battle tested (meaning it is still a good project in theory but in actuality no one knows…) on the other side we have olympus with a solid product and so-far sustainable income. getting more tokemak at this stage feels more of a venture bet than a strategic investment…

    question: if we want to get our hands on more TOKE why don't we get it via bonds that way ohm will go to the hands of multiple people instead of a single entity?

      crud

      Fair arguments ser about timing and stage of the Tokemak product.

      However the APR comparison is not, since DAO owned Ohm is not staked. We're holding a growing stack of almost 1mil OHM that needs to be put into good use slowly overtime. DAO swaps are the lowest hanging fruit to get started.

        crud If I understand this proposal (and the previous proposal regarding a TOKE swap) correctly, the OHM swapped will be used to feed the reactor. It will not be staked into sOHM so your fear of different yield is wrong.

        This OHM will generate whatever yield LPing does for the Tokemak protocol.

        • crud replied to this.

          LFG! Tokemak is about a big brained as you can get, only seconded by OHM big brains. This is a smart move and honestly $3mm is not enough, but a good start!

          Owning Toke is a great way for us to support our partners, and thus a great strategic asset to own. For.

          I like this in the sense that we can/should do more to ally ourselves with the established and burgeoning entities of our/this economic world changing paradigm shaking endeavor. Together we are stronger and this fits the actions of a diversified treasury. Works for me.

          JaLa I am particularly interested in this move in terms of voting power and leverage in Tokemak's governance.

          As @crud pointed out, this move is less financially motivated. Electing $TOKE at a 54% APR over OHM staked at multiples higher seems to forfeit yield revenue.

          This statement is paramount and explains the motivation:

          JaLa utilize staked TOKE to vote on CORE events and to direct OHM liquidity once live.

          This ability to point liquidity from Tokemak to OHM can be worth much more than $3MM alone in fees.

          How do you decide this amount? Is this data based, or arbitrary, and could it be increased to have greater influence in Tokemak votes?

            Are they going to keep their ohm or dump it? We need this information too.

              meditator one would assume they'd stake it to a degree and then use x yield as needed to sell on accation and perhaps market buy toke hard to say - clarification would been nice

              But again it should be pointed out DAO ohm is NOT staked - so utilizing it to gain governance power and some yield pretty sweet yield

              other side of this is like -- I get why the DAO doesn't stake ohm itself.. as sohm but whats holding us from capturing some of the toke yield that we'd want to hodl anyway for voting powers? it's at 200% APR as of this writing for the ohm reactor?

                HoweFai the OHM swapped will be used to feed the reactor. It will not be staked into sOHM

                if that is correct I can say that it makes sense but I am not really sure if this is the case. Some more clarification maybe?

                Baitfish We're holding a growing stack of almost 1mil OHM that needs to be put into good use slowly overtime. DAO swaps are the lowest hanging fruit to get started.

                I agree with that as well but atm. we can use that ohm to feed the reactor to earn 200% APY (will go down as we put more in the reactor). I also understand that DAO swaps are a thing we need to be thinking more about but my problem is why do it with the same DAO for the second time? doesn't this give too much power to a single DAO 🤔

                fig This ability to point liquidity from Tokemak to OHM can be worth much more than $3MM alone in fees.

                Yes the liquidity is really beneficial for us as well as our partners I have no questions about the opportunity and flexibility it gives. But as said before these are all hypothetical points since there is currently no liquidity being directed and no fees being earned, once protocol is activated, time will tell if that is actually the case…

                fig How do you decide this amount? Is this data based, or arbitrary, and could it be increased to have greater influence in Tokemak votes?

                Good points

                Churchee But again it should be pointed out DAO ohm is NOT staked - so utilizing it to gain governance power and some yield pretty sweet yield

                true but another way of looking at this is that OHM is currently counted as "circulating supply" or "unstaked". in the case that tokemak stakes it, it will reduce the yields of everyone else who is staking meaning we all will share a percentage of our future gov. power with tokemak do we really want that?…

                Churchee whats holding us from capturing some of the toke yield that we'd want to hodl anyway for voting powers?

                yes


                so in general my question is: is there a better way to get more $TOKE without giving significant governance power to another protocol for second time… because so far it feels like it is more beneficial for tokemak than for us.

                • JaLa replied to this.

                  fig

                  The $3M amount is based on the amount the Tokemak team agreed to at this point. We believe that TOKE is an important strategic asset as it will allow us to direct liquidity toward ohm as well as many of our partners in the future. The latter could be an integral part of the value prop for a comprehensive liquidity machine (OP, Launchpad, etc.).

                  Since our DAO OHM is not staked, this allows us to unlock value and earn yield on assets that would otherwise be idle. Tokemak will stake the OHM it receives, but this will only serve to increase the reserve of our reactor and therefore increase the amount of liquidity that can be directed to our pools.

                  crud

                  These are fair points but i would say that the two DAOs are highly aligned and the amount of OHM going to Tokemak is not problematic in my mind from a governance perspective. In terms of dilution, the amount swapped will be less than ,1% of circulating supply and will have a de minimis impact on staking yields. That impact will be far outweighed by increasing the liquidity in our reactor 2x while giving us 2x voting and liquidity directing power on the tokemak platform.

                  Churchee

                  Our DAO is the major LP in that pool now, capturing the vast majority of the yield already. Incremental OHM in the reactor would only have a very small impact on our daily yield.

                  [unknown] I see your point of view, but what Crud says is and should be concerning. We are allowing Toke to stake the 3 mill in OHMs at 7k apy, we stake 3 mill ohm in toke for 1-200%. I think crud was saying it benefits TOKE more than ourselves ( which he is correct on ), OHM makes a small return on the TOKE yield that we did not have before. And the larger point how many lopsided deals do we continue to go into that do not make the best of sense. We have funded TOKE in the past, maybe we should let that play out and look elsewhere for something that is equally beneficial to all parties involved.

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