Aigur
@shadow +1 to all these points.
Olympus's intention, goal is not to be "a diamond-handed HODLer and LPer of targeted stable coins." Olympus aims to become, as you said, DeFi's Reserve Currency. The De-central Bank of Crypto. The base camp of DeFi. @e-gons Long term Olympus does "aim to replace pegged currencies for day-to-day transactions."
We want to make Olympus the center of DeFi. The central bank needs to exist at the base layer of everything... We want to put OHM in the same position as USD, BTC, and ETH; as a default currency to pair your token with. (1)
The current macro environment itself is an excellent argument for including in our reserves productive assets that insure and insulate OHM against the loss of its purchasing power.
There’s a strange irony to the fact that the most utilized cryptocurrency is really just a digitized dollar. While functional stablecoins may achieve a stable USD value, that does not mean they’re stable in purchasing power. Their real value changes just like dollars in a bank account, and that value is heavily reliant on the policies of the Federal Reserve and US government, and on the US economy. (2)
We can expand this beyond the Dollar to the rest of the world where in total we see Central Bank Balance Sheets expanding by $4.72 trillion in 2021... so far.
$4.72 trillion of money created out of thin air. It must go somewhere. The challenge is to procure the assets that will receive a slice of these funds. (3)
So, what should we do? Staying solely in fiat pegged/backed stable/algo coins isn't going to cut it.
The treasury does not have to be DAI forever. We are starting with it because USD is familiar and common, and we want to minimize complexity in this initial stage. Plus, DAI enjoys some of the highest yields in DeFi. However, down the road I hope to see Bitcoin become part of the treasury. I believe the best currency should be backed by the best money. (4)
Unfortunately, there is no way, at present, for us to get BTC on Ethereum without some form of centralization.
We live on Ethereum. We're secured by Ethereum. Ethereum is one of, if not the most productive assets in the world.
We want to think about selling OHM like we think about selling USD: that is, we don’t. Instead, we buy things with it. We will buy ETH with OHM, we will not sell OHM for ETH. (5)
We will plug those assets into yield aggregators and add the proceeds onto profits from buying and selling OHM. (6)
This proposal offers Olympus a very conservative means to begin accumulating a volatile 'ultra-hard-money' (soon to be) deflationary asset. The cost? A small amount of our Runway. The benefit? Diversification of the treasury. Ownership of the rails on which our locomotive runs. An asset that has, so far, outperformed as central bankers dilute our savings. Ethereum opens to Olympus another world of possibilities for adding value both to Olympus and to Ethereum itself. This is a DAO. We can choose to do with ETH whatever the community agrees on. Have an idea? Propose it. Concerned with treasury diversification? Join the DAO or, as you're doing, push back in the forum. Ethereum is everywhere and is here to stay. Owning it plants a flag, makes a statement, and gets the creative juices of the community going.
A final note on TaaS. TaaS is not meant only for stable coin projects. Doing so would limit its potential. We're in agreement, TaaS is awesome. Why limit its reach and its benefit to all of Crypto?
I appreciate the debate! And even if your side doesn't "win," I hope you'll stick with the Ohmies to help Olympus succeed where our sovereigns have clearly failed.