Introduce ERC-20 variant of Terra USD (UST) as the next stable reserve asset in the form of reserve bonds with an agreement by Terra to purchase a $1m bond across a one month timeframe. In the past couple of weeks we have been in discussion with ez and Matthew J Cantieri from Terra who have agreed on the $1m bond purchase with co-marketing efforts from their side.
OlympusDAO currently holds approximately $731,436,747 MV of treasury assets which is made up of: $401m in OHM-DAI, $85m in OHM-LUSD, $42m in OHM-ETH, and $34m OHM-FRAX, $80m LUSD, $75m DAI, and $13m FRAX. With OHM-LUSD and LUSD bonds depreciated, there is room for a new reserve asset that we can add to further diversify our treasury.
"TerraUSD is an algorithmic stablecoin, where the cost of minting is equal to the face value of the stable coins minted — in order to mint 1 TerraUSD, only $1 worth of the reserve asset ($LUNA) must be burned. TerraUSD monetary policy is infinitely scalable — helping DeFi apps and protocols achieve their full potential without restrictions." Source: Announcing TerraUSD (UST)— the Interchain Stablecoin
As Olympus grows we gotta make sure that we continue to diversify our treasury and collaborate with others in the DeFi ecosystem to become the decentralized reserve currency of DeFi.
With the recent proposal of wBTC passing I believe that it is time for us to also introduce the Lunatics to our community to promote growth and develop a symbolic partnership with the Terra ecosystem. as wBTC is assigned a risk free value of 0 and LUSD bonds being stopped we could use UST to mint OHM which introduces a new risk-free treasury asset to Olympus.
Furthermore, acquiring UST will allow Olympus to potentially go cross-chain to the Terra Ecosystem, earning additional yield with some of the DeFi protocols over there.
Introduce UST reserve bonds to diversify the treasury and hedge against centralized stablecoin risks. We will target 3.3% of our RFV to be UST. If we exceed 5% of our RFV, UST bonds will be shut off (similarly to LUSD) to promote healthy market growth.
Allow for Terra to purchase a $1m bond to co-market both communities and establish a symbolic relationship.
For: Add UST as the next reserve asset, and enable UST bonds
Against: Don’t add UST nor UST bonds
Terra Medium - https://medium.com/terra-money
Terra Bridge Github - https://github.com/terra-money/bridge-web-app
Wormhole Network Bridge Github - https://github.com/certusone/wormhole
Terra Security Audit - https://www.certik.org/projects/terra
Terra Github - https://github.com/terra-money