I dont like the idea of loaning out OHM. Dilution will make repaying the loan much easier. Why isnt GSR buying OHM at market value?

Also, whats stopping this group from "buying" the OHM from themselves, staking, and repaying themselves?

    EconomistBeard Could be made as part of the agreement that if they do stake it a fee or part of the yield would be captured by the OHM treasury.

      Coud yes that is the idea, a centralized listing should net increase volume and hopefully yield more rewards

      halyax GSR was formed in 2013, before ethereum or tether, we like to think we’re pretty much crypto OG at this point

      Wartull yes exactly, the idea is that the loan would not be staked and dilute rewards for current Ohmies


            Projected via: https://dune.xyz/pottedmeat/Emissions-Predictions

            For reference, these are the options posited by GSR. They would be able to provide the $15.625 or 18.75M directly to the treasury at a total mcap of 31B+ or 115B+.

            It is still worth noting that the cost to Olympus for each OHM is the RFV of 1 DAI (e.g. 25k OHM is $25k USD).

            I am for this proposal given the above numbers.

            muh9s The proposal clearly states they won't stake the OHM.

                Jawesome I know GSR have with us, I'm talking about the CEXs they intend to make a market on. To what extent does our agreement cover their activities? What enforcement action are we in a position to take in the event of a breach?

                    Im confused as to why we would want to onboard people into unstaked ohm? We dont want to burn anyone and by having people buying unstaked ohm isnt that what we'd be doing?

                    I guess thats for MM to figure out but feels like its something we should talk about

                    Diluting normies is a bad look so would want to avoid that at all costs

                    Wartull I second this. Having worked with the GSR team for many years, they are definitely the right partner for this proposal & would be in the best interest of the DAO's current and future initiatives.

                      muh9s I think that is exactly what crypto is about actually, I understand the negative view in regards to MMs based on other protocols experiences but we believe that GSR has our best interest in mind. Again, they are the ones that even proposed not staking the OHM and farm it

                          Jawesome So how does a Coinbase grandmother who buys $150 worth stake? I'm sure the DAO has worked all this out but it doesn't make sense based just on the proposal. How do you market make naked OHM if the CEX sells it as wrapped or gOHM? Trust the DAO but a little more background would be nice. thx

                              Because it's a contract and they are a legal entity. If that's not enough, they also have a name and reputation to protect.

                                Mongo Goal is to make OHM accessible to purchase, if users want to stake they would still have to use our native app

                                  Mongo Great point. I think we indeed need to work together with those exchange to have a native staking option or at least guide them towards staking. That's why having a partner that has existing relationships with these exchanges can help.

                                      CEX engineering teams can and likely will develop custodial staking solutions that we would not be involved in.

                                      • Zeus replied to this.

                                        The reserve currency of Defi needs to play with regulated spaces. Bridging the gap of Tradfi to Defi to allow Olympus and OHM as a concept to reach as many people/institutions is an important step. We want to be ubiquitous and tbh we have really matured as a protocol over the past 8 months. It is a natural next step to create other markets in Tradfi for OHM, the reserve currency of Defi.

                                        The AMA will provide more clarity of the intentions of GSR and whether they are under the ethos of our community. If they are a friendly market-maker, it is time to move forward with a chosen party.

                                        Terms to reflect on:

                                        1. Is the goal to include or exclude people from discovering OHM? Defi is a small place, market makers will help give exposure to many outside the glorious defi.

                                        2. gOHM = governance. Please keep this naked OHM and let retail/institutions come over to Defi and (3,3). No need to give anyone governance power who is outside the castle right now.

                                        3. Define the terms for the community before the swap: avoid dilution, avoid handing over governance power, what are normal terms for dealing with a MM and are these market terms?

                                        4. Questions for GSR: Any forecasts on possible volume for OHM on CEXs? Who are your customers and do you see retail or institutions controlling the volume? Do you give the opportunity to include marketing material and other resources to be plugged in when you offer OHM? Is there anyway GSR can promote OHM over other MMs?


                                          Interested to see where this goes…A great quote in the discord from @BarrelAged
                                          "Right now, holding OHM is like holding paper money of a hyper-inflating currency (which is essentially what OHM is right now)." Let them hold it…staking will form around it, which we can dictate or help CEX dictate and bring people into the family frens….