• General

  • Request for Comment: Stake 5% of Olympus DAO’s Eth reserves in Rocket Pool

Noobulon This might also be worthy of its own oip

Yeah, maybe this is the right approach. Get consensus on holding rEth at all, separately from any attempts to do anything with it. Based on looking through other policies, it seems like something like that might not be so straightforward - only some platforms are whitelisted for that kind of deployment, etc. Sushiswap is approved, but i don't think sushiswap's pair algorithm is great for eth/rEth. A uniswap v3 position could work, but uniswap v3 isn't whitelisted. rEth doesn't have a curve pool yet, although it sounds like they want one - but that isn't whitelisted either. So it will take some planning.

All that said, if it happened eventually I'm sure a lot of people would be thrilled.

    This seems like a sensible proposal, with limited to no downside. Ppl smarter than me should discuss whether 5% (or more in the future) makes sense or if it should be a different percentage. Voting in favor.

    letters My concern is this; We are wanting to add 5% of the ETH we hold to be put into a project that as you say is having issues with their own liquidity issues. Why would we throw cash into something that has not been able to acquire other liquidity?

    Not taking a jab at you but out of the comments that one stuck out. I have no issue voting to allow money to go into income producing endeavors, but how would we know it is a lack of liquidity that is keeping rocketpool's useage rates down vs people just have better options to do the same.

    I would just hate to see us throwing good money after bad.

        millunare no hard feelings, that's a totally fair question, and worthy of your concern. Your comment makes it sound like you're worried that low liquidity is a reflection of poor confidence in the project, and I can say for sure that that isn't the case. The reason for low liquidity is simple -- it's addressed by the first few words of the post: "Rocket Pool launched recently". Partnerships to establish liquidity incentives haven't been built for example.

        Additionally, dex liquidity isn't at all central to the protocol, and so the team so far has placed liquidity towards the bottom of the priority list. It's a great convenience feature for users who need to pull their money out, but if all you're planning to do is buy and hodl, you don't need that liquidity.

        In the long term, I'm hoping to convince Rocket Pool to partner with Olympus Pro to fill out liquidity, but I imagine we'd need the community to crystallize on an incentivizable pool like curve before that's possible.

          millunare Chiming to emphasize that rETH liquidity will be a nonissue soon. Wouldn’t be surprised if momentum builds by the time this proposal (if we get the opportunity) becomes official (incentives/options are being evaluated as I type). We will incorporate liquidity plan/recent steps in proposal to make this more clear.

          If anything the current lack of liquidity is indicative of the strength/commitment of our current user base. The flow of ETH into the protocol - supporting nearly 500 minipools - is by people who have no plans to sell; they are in it for the long term.

          That said, liquidity is understood as important, and will be addressed soon @letters said - it’s all just getting going!

            Smart investors never put more than 1% of capital into any 1 investment so, 5% is a no-go from my perspective. I'm struggling to understand your statement about nodes in 55 timezones. Is there really a place on this planet that sets their clocks 4 minutes and 12 seconds behind those that live just east of their timezone? The Alchemix integration has piqued my interest.

              IceKohl first of all, warren buffet suggests that if you have more than 6 investments then you're too unfocused, so I dont know where you're getting this rule from.

              second, it's not 5% of the treasury balance, it's 5% of the eth reserves we're talking about here

                IceKohl When Rocket Pool node operators register with the network, they may opt to disclose their timezone. The network uses the TZ database to define an operator’s time zone, and in the TZ database there are 500+ time zones. https://en.m.wikipedia.org/wiki/Tz_database

                I understand the confusion; most people (me included) typically define time zones with respect to the prime meridian. But, many computer systems leverage this TZ database, and it defines a time zone as any national region where local clocks have all agreed since 1970. This definition concerns itself first with geographic areas which have had consistent local clocks.

                  IceKohl When you consider that some areas of the US respect daylight savings time and some don't, computers need some way to represent that. For example, some counties in Indiana in the US doesn't respect daylight savings time. So from a computer perspective, even though indiana is in the Eastern time zone, you'd want a different time zone than Eastern for those Indiana counties, so that computers know the correct way to keep time in those counties.

                  That's just one example out of countless examples. time zones are very, very, very complicated. If you're interested, check out https://www.zainrizvi.io/blog/falsehoods-programmers-believe-about-time-zones/

                    Voting in favour, rETH has been heavily audited and bears very low smart contract risk; a decentralized yield bearing derivative of native ETH.

                    I strongly support this. Laid out very well.

                    Thanks for writing this up. I strongly support rEth's integration

                    5 days later

                    This is a no brainer! About to spin up my own rocketpool node as well. Very exciting project, my favorite eth staking project by far.

                    100% great idea.

                    In addition to restricting it to 5% of the Olympus ETH reserves, should we also restrict it to a maximum percentage of the rETH supply? We've avoided, in other cases, owning too much of a token's supply.

                      sirsean I don't think there is really a good reason to do this with rETH, it can be arbitraged through the contract and there's no governance power so I don't see any negative effects of holding a large % of supply

                        letters This seems like a great idea to me. Relatively low percentage of Eth (could start lower if there are concerns). Unfortunately, I don’t know enough about what our eth reserves are currently doing and have no direct experience with rocket pool. Assuming our reserves can’t be put to better use (risk-adjusted), I think it is a great idea worthy or consideration. Thanks for proposing.