Introducing OIP-56: v2 of the OlympusDAO Policy Framework
Note: this proposal was edited on December 9. A markup showing the changes can be found at the end of the post.
In September, the Olympus community approved OIP-22, a framework for how the policy team operates. Olympus has evolved since then, and some developments in the past months are worthy of reflecting in the framework. We’re therefore asking the ohmies to discuss and vote on an updated version. The poll below is informal: if approved here, this proposal will then be posted to snapshot.
The objective of the Policy Framework remains the same: distinguishing (1) key policy decisions that require a community vote from (2) technical levers that the policy team uses with autonomy to implement community decisions and ensure the ongoing health and stability of the protocol.
Thanks in advance for reading and commenting.
OIP-56: Policy Framework v2
Update the framework from OIP-22 distinguishing between (1) key policy decisions that require a community vote from (2) technical levers that the policy team uses with autonomy to implement community decisions and ensure the ongoing health and stability of the protocol.
As Olympus has grown, the technical levers used by the policy team have become more complex, and now include Olympus Pro, the v2 bond contract, v3 liquidity pools and potential cross-chain deployments with some liquidity mining incentives. The new bond contract is particularly important to reflect in the updated framework: because the new contract does not allow changes to certain bond terms once a bond is launched, it is important that the policy team be able to launch and deprecate bonds to maintain the level of agility mandated by the community in OIP-22.
V2 of the Policy Framework seeks to reflect these developments.
We propose updating the table below as a general framework to clarify when the policy team should take action to implement community decisions, and when it must seek specific authorization.
Because it is difficult to predict in advance every technical policy issue that may arise, the following list is not intended to be exhaustive. Rather, it should serve as a living document to help everyone in the community understand how decisions are made.
** General principles for policy team to make decisions affecting bonds:
Policy team should closely monitor runway (measured in days based on current reward rate) and launch or deprecate bonds to maintain sufficient runway, favoring reserve bonds over liquidity bonds when runway drops below specific thresholds, e.g., >300 days of runway
Policy team should closely monitor liquidity (measured as a percentage of $OHM market cap) and launch or deprecate bonds to maintain sufficient liquidity, favoring liquidity bonds over reserve bonds when liquidity drops; these actions are taken to dampen volatility and minimize slippage on large OHM trades
Policy team should closely monitor treasury allocations, launching or deprecating bonds to maintain targeted treasury allocations for each asset, or to prevent/reduce risk to the protocol.
Once v2 bonds are live, the Policy team should maintain a bond stack composed of (1) core liquidity and reserve bonds that are issued consistently over the long term, (2) shorter-term liquidity and reserve bonds that are issued opportunistically in response to changing market conditions and (3) short-term bonds that are issued in response to community voting via snapshot.
Background on the policy team
The policy team is composed of about 20 members of the Olympus community who have displayed sufficient knowledge of the protocol and a curiosity to continue to learn as the protocol grows in size and complexity. Abipup and Sh4dow lead the team. Given the increased complexity of policy matters, the policy team now includes subgroups dedicated to specific matters like bonds, Olympus Pro and policy-related communications. For more information, please visit us in the #policy channel of the Olympus discord. If you are interested in joining the team, please apply for the role in the DAO discord.
Below is a markup showing the changes made to the proposal on December 9: