Summary:
This OIP formalizes three operational actions alongside OIP-190's stable reserve deployment framework: (1) activation of the OHM drip to stream the OIP-191 backing gain to Cooler holders. Governance selects one of three acceleration tiers (2) an increase in Convertible Deposit (CD) capacity to $10M, (3) redeployment of the YRF with revised backing and reserve asset types.
Context & Rationale:
OIP-191 burned 596K OHM of unmigrated v1 supply, adding ~$0.49/OHM to backing (+4.2%). That gain is permanent, but the Cooler drip schedule has not been updated to reflect it. The current drip rate of $0.10/gOHM/day was calibrated to $11.59/OHM backing and we are now at $12.06. This OIP proposes streaming that gain to Cooler holders while expanding CD capacity and refactoring YRF.
Cooler Drip Acceleration:
The drip raises the LTV ceiling incrementally from its current 91.8% and distributes the $0.49/OHM funded by the OIP-191 backing gain. To fund the drip while preserving Cooler liquidity obligations:
Swap $6.55M sUSDe to sUSDS, routing proceeds to the TRSRY contract bringing the total to ~$11.20M sUSDS in TRSRY.
This balance will be made available via LTV increase over one of the following time horizons:
- Accelerated (3M): $0.10 - $1.55/gOHM/day
- Moderate (6M): $0.10 - $0.82/gOHM/day
- Conservative (12M): $0.10 - $0.46/gOHM/day
Convertible Deposit Capacity (CD) - Increase the deposit cap of the CD Facility from $2m to $10m. The increase to the drip will create a guaranteed perpetual bid for the duration of the increase through hOHM Arbitrage as well as the potential for direct bids from Cooler holders as their LTV increases. Both things change the landscape around CD speculation so this request opens the capacity and allows a clear venue for that speculation to exist.
YRF Redeployment - Variable Asset and Mutable Backing - YRF is currently limited to tracking the yield from USDS/sUSDS. As a result, manual swaps are required from sUSDe to sUSDS, which reduces yield from YRF. Olympus will refactor the YRF contract, allowing it to perform buybacks using more than one reserve balance going forward. The backing that it uses to calculate the leverage on its buybacks will also shift from the $11.33 constant to a variable value that can be configured via governance. The new backing will be 95% of backing value at time of contact deployment. Yield will continue to be routed per OIP-190 mechanics (harvested to sUSDe/sUSDS, then routed through YRF for buybacks/burns or TWAP'd to OHM).
Next Steps:
- Ratify CD capacity increase to $10M
- Ratify YRF redeployment
- Governance vote selects drip acceleration tier (3M / 6M / 12M)
- Execute $6.55M sUSDe to sUSDS swap,
- Confirm $11.20M sUSDS in TRSRY pre-drip
- Activate drip per selected time frame
Appendix A - Drip Scenario Modeling Full interactive model: https://olympus.zeroxzero.ventures/plutus/v3/ All three tiers modeled with live protocol state (backing, circulating supply, hOHM collateral). Figures update dynamically based on live subgraph data.
