Summary:
This proposal seeks to utilize a portion of proceeds from the recent RBS OHM emissions to further capitalize and extend the YRF's operational capacity. The additional funding will maintain the current YRF configuration while providing additional resources to support protocol objectives.
Motivation:
The Yield Repurchase Facility (YRF) has demonstrated significant success in recent months. The community recently voted to continue the YRF for an additional three months, recognizing its critical role in:
- Contracting OHM supply
- Aligning long-term holders
- Generating treasury value
On November 17th, the RBS upper wall was completely depleted, capturing approximately $3 million in demand for the treasury.
- The protocol observed a peak price at the upper wall of $21.26. 8% away from where the EM would've offered reserve bonds had it been in place.
- Liquid Backing moved from $11.55 to $11.68 over the same period
This proposal aims to leverage the recent OHM emissions to reinforce the YRF's capabilities as the protocol installs tools to support growth.
Proposal:
- Allocate a portion of the recent RBS OHM sale proceeds back into the Yield Repurchase Facility, returning liquid backing to $11.55 where it was before the upper cushion began issuing ohm.
- Maintaining all existing YRF configuration parameters, including the use of Axis Finance.
- Implementing a 45-day spending schedule
- Setting a maximum premium of 100% against backing ($23, where EM and the additional POL would be enabled)