Market Making Proposal from GSR

EconomistBeard

Mongo Staking is permissionless, nothing would stop a CEX from staking OHM and showing naked OHM on their front-end.

Winnal

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.

Wartull

EconomistBeard that can all be agreed upfront

Wartull

Wallace900402 That would dilute ohmies, we wouldn't want that

gsr_nyc

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

Graz

is there any form of insurance if the OHM is lost through a hack etc?

Sirz

Yesssss!

Graz

would gOHM be better? It lacks market depth and liquidity?

solubrew

Definitely think there needs to be clarification on the loaning of OHM and the status of staking and rewards on those OHM over the contract period with details in respect to gOHM transition.

Jawesome

solubrew It literally says they wont stake the OHM at the end of the proposal ser, gOHM doesn't affect this proposal either

EconomistBeard

Jawesome Ser, you must realise that agreement begins and ends with the supply of OHM the market maker has on its balance sheet. How are we going to ensure the supply on the exchange balance sheet stays unstaked?

MadLurk

Jawesome @EconomistBeard What penalty do we have if we find staking by MM or any of the CEX partners?

Jawesome

EconomistBeard ser, it's called contract obligations for them to keep their end of the deal. Plus, they are the ones that actually suggested not the stake the OHM themselves, so we believe they have good faith

Winnal

Wartull I think this is super important, could be considered as a fee or interest on the loan in as far as the unstaked balance will increase the APY for the rest of us staking, so taking out a chunk of staked supply for market making makes sense.

muh9s

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?

Wartull

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

liam3

muh9s agree What outcome is this treasury allocation driving? This is so opaque. Lots of objection handling but no justification as to why this is being evaluated in the first place.

muh9s

Jawesome relying on contractual obligations and good faith is not what crypto is about. Let them buy it at market value. If they want a loan, they should go to aave or a bank.

EconomistBeard

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?

Mongo

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

h0botnic4

Jawesome is OlympusDAO a formalised legal entity in relevant jurisdictions? How can a contract like this be even made and enforced with a DAO?

Jawesome

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

Don_G_Lover

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

Wartull why are we trusting what theyre writing in the proposal?

Winnal

EconomistBeard Believe it or not a DAO is a decentralized entity which does have legal rights.

philipinosis

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

coinberg

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.

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