Summary
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.

Background
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

Motivation
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.

Proposal

  • 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.

VOTE: https://snapshot.org/#/olympusdao.eth/proposal/0x9cdcd0b18ceb5465e4aae2fef9b258d46dab7359071f4f6abe4e5faf9287a2da

For: Add UST as the next reserve asset, and enable UST bonds
Against: Don’t add UST nor UST bonds

Resources
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

Should we add UST to the Treasury as the next reserve asset?

This poll has ended.
    Jawesome changed the title to OIP 52: Add UST to the Treasury .

    If the protocol truly intends to be the reserve currency for the entire DeFi ecosystem, it only makes sense to have a finger in all the DeFi pies.

    I think its time to try luna been around long enough to risk it for the biscuit!!

    Decentralized apps need decentralized stable coin. That's how u become real reserve currency.

    Decentralized reserved asset backed by decentralized currency

    To my opion UST is the next stablecoin 2.0. Terra has a bright future ahead.

    the whole motivation within the proposal just says it all, so a big YES for me.

    Match made in heaven .

    I support both … the terra ecosystem and OlympusDAO, which is becoming more and more of an ecosystem.

    About time!!! Let's get this done!

    OHM doesnt stop to impress me! bigger and bigger moves i can see OHM being the reserve currency for DEFI!
    blessings to all the OHMIES and to the team making moves behind the scenes!

    Love it! I'm assuming the natural next step after accumulating UST will be to use Anchor Protocol to generate more yield?

    Also, why not additionally accumulate LUNA (in our case wLuna) if Luna is used as the reserve asset for TerraUSD?

    Would be great to see analysis of the upside as well as risks to adding a new asset to the treasury (not just UST, all proposals here).

      This would connect 2 of the very top players to weather the storm. Olympus & Terra

      cma

      I agree, I think it would be good for the treasury team to do a regular/ongoing review of its current treasury allocation, provide current market risks/benefits it sees as well as other analysis which includes what went well, what could've gone better, etc….

      Symbolic relationship = Symbiotic Relationship

      Can’t think of a reason not to support this