Summary:
Following the successful launch of Convertible Deposits (CD), this RFC proposes the issuance of Ethena (USDe) denominated CD markets. This would expand Olympus’ CD program beyond Maker’s USDS / sUSDS, introduce reserve diversification, and highlight the program’s flexibility in shaping OHM’s reserve composition.
Motivation:
Olympus’ reserve structure is heavily influenced by the stable assets in which it engages. Today, CDs are denominated in Maker’s USDS. While this has established a clear reserve anchor, it concentrates risk in a single stable ecosystem.
By introducing USDe-denominated CDs, Olympus can:
- Diversify Stable Exposure: Reduce reliance on Maker’s USDS / sUSDS and broaden exposure to other credible stablecoins.
- Enhance Reserve Flexibility: USDe carries its own yield mechanics that may create opportunities for Olympus to capture additional reserve returns that feed into Cooler Loans for distribution via increased LTB's.
- Demonstrate Adaptability: The CD framework is designed to be flexible. Supporting USDe showcases Olympus’ ability to recharacterize OHM’s backing in a programmatic, modular fashion.
Specification:
New Market: Deploy CD markets denominated in USDe.
Parameters:
- Loan-to-Value (LTV), Term Length, and APR to be proposed alongside community and risk discussions.
- Operational safeguards consistent with existing CD deployments.
- Reserve Accounting: USDe balances acquired through this program will be included in Olympus’ reserve assets, alongside sUSDS and other holdings.
Rationale:
The introduction of USDe as a supported CD denomination builds on Olympus’ vision of OHM as a credibly backed, adaptable asset. Olympus does not need to concentrate backing in a single issuer’s design. By expanding to Ethena’s USDe, Olympus:
- Lowers counterparty risk exposure.
- Gains access to novel yield characteristics tied to Ethena’s design.
- Signals to the broader ecosystem that OHM’s reserve architecture is modular, forward-looking, and adaptable to new primitives.
Next Steps:
Solicit community feedback on appetite for USDe-denominated CDs.
Engage Treasury & Risk to define initial parameters (APR, tenor, collateralization).
If consensus is reached, advance to a formal OIP for implementation.
References:
Olympus Forum RFC: Downsize POL - https://forum.olympusdao.finance/d/5065-rfc-downsize-pol
Ethena Protocol Docs - https://docs.ethena.fi/
