Appleseed

Hi Applesead, I think you're right, its a strategic play on the future use of the Eth.

In addition to everything Shadow, Aigur, JFry4, and others have said, (protecting against USD deterioration, stablecoin risk, having a basket of decentralized unhackable assets)... including 5% Eth in the treasury without minting is a long-term play. There's no need to mint more Ohm off of Eth in the short-term, the current runway is considerable and has been growing continuously through partnerships and bonding.
Some of the runway extension also comes from forced buyers and sellers during periods of volatility, when the treasury protocol gains Dai by picking up spreads. This was even visible during the last drawdown when APY shifted from 15k to 16k for one epoch.

Also, it's useful as insurance against the unlikely event of Olympus DAO price decreasing considerably, 90% for example, having more Eth in the treasury acts as a strong incentive for buyers of last resort. Whoever buys the dip of the dip knows their will have a claim on whatever Eth is in the treasury if things go really south.

If for some reason something very bad were to happen to stablecoins, this wouldn't necessarily impair Eth, so that helps as a hedge. Especially since many people would flock from stables to the nearest bankrupcy proof asset.

Finally, growing a 5% Eth position will allow Olympus to participate in Eth 2.0. There will be benefits in terms of both passive income, MEV capture (I'm sure others can explain this better than me), and having a voice in Ethereum governance by possessing a staking pool.

Even if over time we successfully migrate much of Ohm governance to code, it will be very important to have influence in Eth governance since Ohm is built on Eth and currently does not have any other safe harbors.

Cheers,
Fulano (Α, Ω)

About time, looking forward to ETH

Love it, but why don't we want ETH-OHM LP to go with it like the others? Or is that just next in line?

As long as we account for the stipulation that Eth bonds are only possible when OHM>$1

I'm a bit late, but I was thinking last night, can we stake the ETH somehow to earn passive income?

    decentralizedDoug Not on Olympus I am afraid, at least it is not laid out in this proposal. When you purchase an ETH bond, you are essentially giving up your ETH in exchange for discounted OHM tokens.

      decentralizedDoug imo this is definitely a possibility. Like how we have deposited the DAI in our treasury to AAVE to earn passive income, I can imagine we would do something similar/useful with the ETH accumulated from bond sales. I believe a proposal will be put up in the future if this is the case.

        kschan Agreed that we will have options on how to make the ETH most productive whilst retaining flexibility. It wouldn't surprise me to see some combination of naked ETH and stETH.

        13 days later
        2 months later

        Directionally agree as ETH for sure will be the relevant basket of "good" in the context of reserve currency, though I want to think more about the 5% target.

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