Copying the general format from Shadow's voting proposal for Eth,
what do you think of the following?
Summary
Introduce a Cosmos ecosystem wallet and begin accumulating ATOM tokens. Once Gravity Dex/Emeris, Sifchain, & Thorchain are up and running, there will be significant diversification benefits to holding multichain assets in the treasury.
The decision to accumulate ATOM for the Treasury, constitutes one possible continuation towards towards our goal of becoming a decentralized & resilient currency that functions as the central bank for all of defi.
Proposal
Add treasury asset - ATOM
Target 3% of Treasury risk free value (RFV)
Example: If Treasury RFV is 24 million, we would aim to accumulate $720,000 of ATOM
Aim to reach this target over a period of 60-90 days. DCA in such a slow manner would help in the off-chance that risk assets sell off during the second half of this year.
Important Notes
ATOM would be assigned a risk free value of 0, meaning we wouldn’t mint against it.
OHM will no longer be backed by just 1 unit of risk free value ($1) and a proportional amount of Eth in the treasury, but also by a proportional amount of ATOM. If this were to pass proposal pass, you can visualize the new backing of OHM as 1 OHM = $1 + 0.xx ETH +0.xx ATOM (+ a fraction of any other asset we eventually hold in the Treasury)
Motivation
Olympus’s goal from the outset was to become a decentralized currency. In order to embark on that journey we started with DAI, which itself is primarily backed by ETH and USDC. After that, came the partnership with Frax Finance, whose stablecoin FRAX is partially collateralized. We’re pleased to say that this partnership was and continues to be a great success!
Stablecoins have worked out fine so far, but in order to move forward, an introduction of a non-pegged asset as backing is necessary. The asset we choose should be something that adds value to the whole ecosystem, irrespective of its price.
It is true that the fates of Eth, Erc20 stablecoins, and Ohm are intertwined and stem from the same fertile river valley. And the decision to include Eth bonds was a major step towards reducing our absolute dependence on centralized stablecoins.
Nonetheless, the development of multiple interchain dexes at the same time as the US government begins to regulate centralized exchanges (Kraken, Coinbase, FTX, Blockfi, etc.) and decentralized protocols whose corporate residence is located within US jurisdiction (Uniswap), point towards the eventual interchain nature crypto. Interchain resilience will eventually become a necessity, just as anonymity and decentralization currently are.
As for how to do it, it is unclear that the simple and straightforward method of offering ATOM bonds would work, since ATOM and OHM currently reside in distinct ecosystems. Though eventually, once Emeris, Sifchain, and Thorchain all have mainnet up and running, the accumulation of ATOM could be automated, this does not seem to be the case at the moment.
Dollar cost averaging into an ATOM position 50k per week would complete the investment in 3-4 months.
Comments:
Other alternatives could involve the introduction of ATOM bonds, but it is unclear how much infrastructure would need to be built up before this could work.
Alternatively, we could begin by developing a partnership with a significant & trustworthy validator and exchanging Ohm for Atom.
Proposal
Add a new treasury asset - ATOM
Target 3% of Treasury risk free value (RFV) being ATOM
Example: If Treasury RFV is 24 million, we would aim to accumulate $720,000 of ATOM
Reach this target over a period of 90-120 days
Using a percentage of RFV as our target allows for a conservative approach, maintaining the stability of our runway and reducing price exposure to ATOM. In the case that ATOM appreciates in price and goes over the target, we would cease purchases of ATOM and continue the growth of RFV through DAI, FRAX, and ETH.
Currently, we’re sitting at around 24m risk free value, so the target would be 3% of that which is $720,000. As the RFV grows, so does our allocation in dollar terms.
Most importantly, by having ATOM in our Treasury, each OHM will be backed by a certain amount of ETH & $1 of risk free value (via stablecoins) as is the case now, but it will also be backed by a certain amount of ATOM. While ATOM wouldn’t be included in the RFV, it would be included in the intrinsic value (IV) of OHM, which is a metric everyone should watch closely as Olympus matures and transitions towards a decentralized backing.
Vote
For: Add ATOM to our Treasury
Against: Don’t add ATOM to our Treasury