Previous Governance Reference: RFC #5065 - Downsize POL
Summary:
This RFC proposes increasing Protocol-Owned Liquidity (POL) on Base from the current ~$545k TVL to approximately $1M TVL by bridging additional OHM and USDC from mainnet. This move positions Olympus to rank higher among the most liquid protocols on Base, increasing our visibility and accessibility—particularly in light of Coinbase’s plans to launch their Coinbase DEX and prioritize highly liquid protocols first.
Motivation:
Coinbase recently announced plans to launch Coinbase DEX, with an initial focus on listing and integrating the most liquid protocols on Base. Olympus currently sits mid-pack in Base liquidity rankings. By increasing our Base TVL to ~$1M, we ensure OHM is:
- More discoverable and competitive on Base.
- Among the first protocols available for trading on Coinbase DEX.
- Better able to service larger trades with minimal slippage.
This aligns with our broader strategic goal of increasing OHM accessibility across major trading venues and L2s.
Current Position & Proposal:
Current Base POL Position (OHM/USDC CL Pool, $12 → ∞ Range):
OHM: 18,000 (~$411,020.33)
USDC: 112,602.28 (~$112,602.28)
Current TVL: ~$523,622.61
Target Position (~$1M TVL):
Additional OHM: 18,000 OHM ($411,020.33)
Additional USDC: 112,602.28 USDC ($112,602.28) - (This will be swapped from sUSDS to USDC to be composable with existing liquidity.
Proposed Bridge Amounts:
From Mainnet to Base: 18,000 OHM + 112,602.28 USDC
Resulting TVL: ~$1,000,000
Rationale:
Exchange Prioritization: Higher liquidity increases the likelihood of OHM being integrated early on Coinbase DEX.
Capital Efficiency: Concentrated liquidity from $12 → ∞ optimizes for relevant trade flows while minimizing sub-backing deployment.
Strategic Growth: Improves cross-chain reach without materially exceeding the 8% circulating supply POL cap defined in RFC #5065.
Risks & Considerations:
- Market Risk: OHM price volatility may temporarily affect TVL and pool depth.
- Opportunity Cost: OHM and USDC bridged to Base are unavailable for other yield or liquidity strategies.
- Execution: Bridging and deployment will require coordination between multisig signers and treasury ops.
