Intro
Gm Ohmies, my name is Psaul, I lead BD at Bunni as part of the Growth Unit. Bunni is a DEX on Uniswap v4 which optimises yield in any market condition. Using Shapeshifting liquidity, rehypothecation, MEV recapture, and autonomous rebalancing we can remove active management from LP'ing and source returns from multiple angles.
It seems both Olympus and Bunni have similar alignments on capital efficiency, focus on revenues, and decentralisation.
I'd like to propose for the Olympus community to welcome Bunni into its treasury strategy by onboarding existing Uniswap v3 liquidity to Bunni. This initiative will increase returns for the treasury, growing the treasury backing for Olympus (and OHM) and strengthening the value proposition for OHM, the most productive reserve asset in DeFi.
Background
Currently, the treasury has 2 large LP positions on Ethereum's deployment of Uniswap v3, namely: OHM-WETH & OHM-sUSDS. The liquidity allows for great pricing for the community with a +/- 2% depth of $130,000 in OHM-WETH per coingecko, however most of the liquidity sits idle in the pool, a drawback as volumes are seasonal. Due to the architecture of Uniswap, the only income stream available for LPs is swap fees and to optimise them, users have to deploy elaborate strategies which can be complex and time consuming. The gain for Olympus using Bunni are additional revenue from the pool and improved liquidity conditions for swappers.
Motivation
One year volume for OHM-WETH is at $82m. With a 10% protocol fee for Bunni, the protocol could earn over $20,000 and use a percentage of the earnings to redeploy as liquidity incentives in oBUNNI if needed. This would invite more LPs to the pool, growing liquidity conditions for OHM and attract more swap fees. Bunni makes up for the 10% protocol fee with additional features like rehypothecation, MEV recapture, and a referral program. By onboarding to Bunni, Olympus can participate in Bunni's referral program and receive revenue share currently paying out 50% - could be 40% by the time this proposal is enacted if successful. This revenue share is protocol-wide, not local to only OHM pools. If Bunni's overall rake from swap fees increases 10x, then Olympus's income from this stream and other positions scales. This was previously unable due to Uniswap's architecture.
Bunni also uses rehypothecation to supplement earnings, the Olympus community would be more than welcome to choose a rehypothecation option for the WETH and/or sUSDS. Some avenues to consider:
WETH: the community can opt for alignment with a single lending market, or utilise an optimiser vault sourcing competitive yields between various lending protocols.
sUSDS: The community may prefer keeping sUSDS as the pairing and rehypothecating to their Morpho instance curated by Gauntlet or use USDS for the pairing and rehypothecate into sUSDS. The latter option (USDS --> sUSDS) can provide higher swap fees due to higher volumes providing a balance between stable base yields, swap fees, and MEV. For context, USDS frequently trades at least 2.5x the 24h volume of sUSDS.
While the Bunni team (formerly Timeless) has no history of hacks on previous product like Bunni v1, Timeless, and 88mph, a new protocol always presents security concerns. If this direction is one the Ohmies decide to pursue, the plan could be to migrate liquidity over the course of 6 months with the option to shorten, maintain, extend, or terminate the initiative at 3 months.
An OHM LP deployed with Bunni could also enhance capital efficiency with a custom LDF allocating liquidity according to the backing value of OHM. The liquidity distribution on Bunni can support the “floor” price of OHM while concentrating liquidity more than the existing full range position, further improving swaps for users.
Example for Uniswap V3 OHM-sUSDS Liquidity Pool
Assume:
50/50 ratio is held throughout duration of LP'ing (30 days)
Gauntlet vault lending yield = 0.95%
Olympus deposits through referral program for revenue share
90% of sUSDS is rehypothecated
OHM-sUSDS share of Bunni TVL is constant
All figures consistent as of April 25th, 2025
Bunni TVL: $7,800,000
OHM-sUSDS Total Liquidity: $5,722,355
OHM: $2,861,177.5
sUSDS: $2,861,177.5
90% of sUSDS rehypothecated into Gauntlet vault = $2,575,059
Lending yield = Native + MORPHO incentives
0.15% + 0.8% = 0.95%
Rehypothecation yield = 2,575,059 x (0.95/100) x 0.0833 = $2,038
Referral earnings = 50% x users liquidity/total liquidity x protocol fee
0.5 x (5,722,355/7800000) x 5476 = $2,008
Additional earnings = $2,008 + $2,038 = $4,046
Total returns w/ OHM-sUSDS LP on Bunni = Total swap fees on Uni v3 LP + Additional earnings
$10,724 + $4,046 = $14,770
Additional ROI = (14,770 - 10,724) x 100 /10,724 = 37%
Notes
- Recall 30 days = 1 month = (1/12) years = 0.0833
- The day this was written (25/04), USDS had 4x volume than sUSDS
- A critical bug found in an ongoing audit (April 25th) prompted the team to pause rebalancing. A report will be released soon and new patched contracts will be deployed after the audits’ end planned for May 9th. https://x.com/bunni_xyz/status/1915820683659251926
Sources
Revert finance OHM liquidity pool data - https://revert.finance/#/account/0x245cc372c84b3645bf0ffe6538620b04a217988b
Coingecko OHM markets’ liquidity depth - https://www.coingecko.com/en/coins/olympus
Bunni Info:
Site: https://bunni.xyz
Documentation: https://docs.bunni.xyz
