OIP-189: Olympus Strategic Deposits into Peapods Finance

Relwyn

Summary:

This RFC recommends Olympus strategically deploy liquidity into Peapods Finance across two Pods:

$500,000 USDC into the pHOHMLONG Pod
4,800 OHM into the pHOHM Pod

These allocations target lending markets where utilization is currently at or near 100%, driving exceptionally high supply APRs. By deploying at size just above the kink point (92%), Olympus can capture strong yields, while also stabilizing funding markets for OHM-related strategies.

Motivation:

Attractive Yields:
The pHOHMLONG Pod (USDC) is presently yielding 71.8% net supply APR at 96% utilization. Even after a $500k deployment, APR remains 70.9%.

pHOHM Pod (OHM) is at 55.2% net supply APR at 100% utilization. Adding 4,800 OHM supply lowers utilization to 92.25%, yielding 61.9% net supply APR.

Strategic Alignment:

Lending is collateralized by hOHM, which Olympus recognizes as pristine collateral equivalent to OHM.
Deposits support OHM’s broader liquidity environment by relieving extreme utilization pressure.

Further engagement and evolution of our partnership with Peapods Finance. Their protocol receives continuous net revenue denominated in OHM and we have been working diligently with them to illustrate the value of Cooler Loans to draw liquidity and use of OHM to underwrite a treasuries balance sheet. Our engagement into the OHM side of their protocol supports those conversations as we align with their growing and cash positive business.

Risk-Aware Targeting:

Deployments are sized to keep utilization just above the kink rate (92%), balancing yield capture with market stability.

Hypernative monitoring will provide programmatic oversight of daily utilization, APRs, and risk metrics

Specification:

There are the following specifications for deployment:

Deposits:

$500,000 USDC into the pHOHMLONG Pod.
4,800 OHM into the pHOHM Pod.

Monitoring:
Hypernative agent will check utilization and socialize the ratio of lend to borrow and APR daily.

Olympus Treasury will adjust positions if markets move materially below kink (to avoid inefficient capital) or above kink (to prevent runaway rates). As a safety measure, for launch we will place Not to Exceed caps of $1.5m in stables and 14,400 OHM on each market (3x the launch amounts). This can be adjusted with further governance.

Return Projections (linear, assuming kink management):
pHOHMLONG Pod (USDC):
APR 70–72% → 3-month return ≈ 17% | 6-month return ≈ 35%.

pHOHM Pod (OHM):
APR 61–62% → 3-month return ≈ 15% | 6-month return ≈ 31%.

Rationale:

Current market conditions show sustained demand for hOHM leverage, both against OHM and USDC collaterals

Olympus can capture increased yields, socialized to all holders via backing, while reinforcing OHM’s utility and liquidity profile.

The requested deployments are modest relative to Treasury size, but impactful in supporting ecosystem health.

Supporting Models (RPC to LVF Contracts on 9/30/25):

LVF Pair: 0x14794665D2f467A6E393E1A7210c49a1aA571D77
Asset: USDC, decimals=6
Totals: asset=17,931,077.560512 USDC | borrow=17,242,682.884229 USDC
Base APR=0.50% | Kink APR=56.57% | Full-util APR=81.25%
Kink=92.00% | Vertex step=+50% | Reserve factor=10.00%

Current:
  Utilization       : 96.16%
  Borrow APR (gross): 82.98%
  Supply APR (net)  : 71.81%

What-if add USDC supply:
  +     250,000 ⇒ Util 94.84% | Borrow 83.57% | Supply 71.33%
  +     500,000 ⇒ Util 93.55% | Borrow 84.15% | Supply 70.85%
  +   1,000,000 ⇒ Util 91.08% | Borrow 56.01% | Supply 45.91%
  +   2,000,000 ⇒ Util 86.51% | Borrow 53.22% | Supply 41.44%
  +   5,000,000 ⇒ Util 75.19% | Borrow 46.32% | Supply 31.35%

LVF Pair: 0xC255910618158F48FA461874471Aa24AEfbDC23A
Asset: OHM, decimals=9
Totals: asset=57,113.379563 OHM | borrow=57,113.379563 OHM
Base APR=0.50% | Kink APR=49.99% | Full-util APR=61.28%
Kink=92.00% | Vertex step=+50% | Reserve factor=10.00%

Current:
  Utilization       : 100.00%
  Borrow APR (gross): 61.28%
  Supply APR (net)  : 55.15%

What-if add OHM supply:
  +         750 ⇒ Util 98.70% | Borrow 63.50% | Supply 56.40%
  +       1,000 ⇒ Util 98.28% | Borrow 64.22% | Supply 56.81%
  +       1,500 ⇒ Util 97.44% | Borrow 65.66% | Supply 57.58%
  +       2,000 ⇒ Util 96.62% | Borrow 67.07% | Supply 58.32%
  +       3,000 ⇒ Util 95.01% | Borrow 69.82% | Supply 59.70%
  +       4,000 ⇒ Util 93.45% | Borrow 72.49% | Supply 60.97%
  +       4,500 ⇒ Util 92.70% | Borrow 73.79% | Supply 61.56%
  +       4,800 ⇒ Util 92.25% | Borrow 74.55% | Supply 61.90%
  +       5,000 ⇒ Util 91.95% | Borrow 49.96% | Supply 41.34%
  +       6,000 ⇒ Util 90.49% | Borrow 49.18% | Supply 40.05%
  +       7,500 ⇒ Util 88.39% | Borrow 48.05% | Supply 38.22%
  +       9,000 ⇒ Util 86.39% | Borrow 46.97% | Supply 36.52%
  +      10,000 ⇒ Util 85.10% | Borrow 46.27% | Supply 35.44%
  +      12,500 ⇒ Util 82.04% | Borrow 44.63% | Supply 32.95%
  +      15,000 ⇒ Util 79.20% | Borrow 43.10% | Supply 30.72%
  +      20,000 ⇒ Util 74.06% | Borrow 40.34% | Supply 26.89%
  +      25,000 ⇒ Util 69.55% | Borrow 37.91% | Supply 23.73%
  +      30,000 ⇒ Util 65.56% | Borrow 35.76% | Supply 21.10%
  +      40,000 ⇒ Util 58.81% | Borrow 32.13% | Supply 17.01%
  +      50,000 ⇒ Util 53.32% | Borrow 29.18% | Supply 14.00%

Next Steps:

Community vote via Snapshot

Shpadoinkal

Fully support turbo charging our yields using peapods

xocrypto

I don't believe that Peapods is the best available partner to deploy treasury capital. And quite honestly, it is not because of the great yield numbers, or the opportunity to develop funding markets for OHM.

It is because of the behavior of the Peapods team during times of market volatility. Time and time again they have shown to be grossly underprepared, picking and choosing where to socialize market losses when LVF pods become compromised or its users' positions within them become liquidated.

While hOHM is a trustworthy product, utilizing a Peapods integration introduces a non zero third party risk, and that should be investigated before committing protocol funds.