Request for comment: Klima X Olympus

Summary:

Signal our willingness to participate in Olympus’ Proteus program, by introducing wsKLIMA/gOHM bonds for KlimaDAO. Bootstrap the liquidity pool on the polygon network by obtaining a loan of $5m in gOHM. Add gOHM as a Lending asset on the KlimaDAO market pool.

Background:

KlimaDAO is a fork of OlympusDAO, utilizing the bonding mechanism in order to acquire BCTs (Base Carbon Tonnes) into our treasury, creating demand for carbon credits, and facilitating a market for them.

While we are very new, with recently passing our first month, we have obtained over 10m BCT into our treasury, with 3m being risk free. In total, we have 150m USD in market value in our treasury, with our metrics showing a very healthy state. We could have not been successful without the assistance of Olympus, and are always thankful for you guys.

Abstract:

Simply put, we want to continue providing support and assisting Olympus in establishing liquidity rails onto other networks. As many of the team are long time ohmies, we have been with Olympus since inception, and we truly believe that Olympus will achieve the goal of being the decentralized reserve currency of DeFi. Therefore, we want to align ourselves to fully embrace the Olympus ecosystem.

Proposal:

4. Create a wsKLIMA/gOHM bond for KLIMA, incentivizing gOHM to be bridged into polygon, as well as creating liquidity for both Olympus and Klima. As gOHM is not a carbon asset, we cannot use it for backing. However, the addition of a new rail of liquidity, and the demand from ohmies to bond vastly outweighs any downside.

5. To bootstrap a pool, we’d like to acquire a loan of $5m gOHM, to be paired with $5m wsKLIMA, and create a $10m wsKLIMA/gOHM pool on day 1. While we’d prefer a DAO-DAO swap, we feel that Olympus is already well exposed to the Klima ecosystem due to their pKLIMA allocation, as well that our treasury isn’t large enough yet to pursue this route.

6. Deposit a portion of the liquidity to acquire gOHM (similar to how Olympus deposits their liquidity onto Sushiswap’s Onsen program). This will be placed in our reserves, and will be diamond handed for the foreseeable future. We will work with the Olympus Policy and Treasury team to determine the rewards.

Because OHM isn’t available yet on Polygon, gOHM will need to be used as the liquidity pair. In order to minimize IL, we’d like to use wsKLIMA as well. This essentially creates a pseudo OHM-KLIMA pair. Once OHM is available on polygon, we’d like to convert it to a OHM/KLIMA pair. We will also develop a contract that allows gOHM to be swapped into/from USDC, by unwrapping and unstaking the wsKLIMA, and traded to USDC. This will serve as a temporary solution, until Olympus has obtained a significant liquidity Stablecoin rails.

gOHM -> wsKLIMA -> (unwrap) -> sKLIMA -> (unstake)  -> KLIMA -> BCT -> USDC

Lastly, KlimaDAO has a market (fuse deployment on polygon) pool, and we’d like to add gOHM into the pool as an asset to be used as collateral. Similarly to the Olympus pool party, the LTV will be set at 40%.

Benefits for Olympus:

1. Strengthen relations between the KlimaDAO and OlympusDAO community.

2. A permanent liquidity pair on polygon that will be bolstered by the KlimaDAO protocol, reducing dilution from the OHM token.

3. A OHM-stable pair route established on day 1.

4. Reduced sell pressure from liquidity mining rewards, as KlimaDAO intends to hold gOHM within the treasury.

5) Access to a lending and borrowing platform in a low fee environment, allowing for smaller players to lend and borrow.

Other:

The terms regarding length, repayment will be determined between the two DAOs.