lejimmy I like the concept but I feel like it introduces too many variables, volatility and smart contract risks by adding BED or index based tokens

      We should support the Ethereum ecosystem by introducing this bond type. The naked asset is most efficient to achieve acquisition and slowly introduce a new volatile asset.

      The timing and allocation is conservative.

      OM0811 Ha, I'm not! But I've been in DeFi for a while so I'm slowly turning into a self-taught defi-conomist... 🙂

        I think there's already a small ETH-OHM pool that we could take over (assuming there isn't utility from founding a new one), and maybe that would even help keep the price more accurate on coin gecko lol

        But I agree that naked bonds to start make the most sense from an acquisition point of view. Glad to see this other foot dropping.

        shadow I fully support this proposal, as DAI is now backed by up to 70% USDC (Circle..) in efforts to further decentralize the soil in which Olympus is growing on, ETH is an absolutely necessary asset to add to the treasury that isn't pegged.

          Brian33 Hey quick question, what would be the smart contract risk by adding eth? Don't we already have the smart contracts deployed for DAI? Wouldn't it be a basic swap in the contract to allow ETH? I'm not very technical so I could be way off. If it does propose a smart contract risk, could you provide some detail so I could better understand?

          Thanks!

              foks Since our RFV/OHM is greater than 1, we can utilize this to back the OHM minted by the ETH bond while still retaining our backed nature

                  Brian33 Would this strategy therefore be unsustainable if RFV/OHM is brought under 1? For example, what would happen when the buyback of OHM (the "floor") is moved up from $1 closer to the RFV? Currently RFV/OHM is ~ 20 so it's not an issue but I'm wondering if this might be a future problem.

                      This is what I proposed a couple of days ago in the main discord channel. I am all for it. Only thing to consider is, whether the bonds should be available only in specific price range or not.

                        shadow ETH would be assigned a risk free value of 0, meaning we wouldn’t mint against it
                        OHM will no longer be backed by just 1 unit of risk free value ($1), but also by the proportional amount of ETH in the treasury.

                        Awesome!

                          I’m so glad to see this is up for a vote! This is an important step away from the inherent risk associated with being backed by solely 1 asset. We’re moving at lightning speed here ohmies! Can’t wait to see btc added to the treasury in the future as well!

                          lejimmy I'm a fan of index, but considering the double dipping fees on both BED and DPI, as well as the scale Olympus is aiming for, I think we're better off either managing our own index or negotiating with index to lower the fees 🙂 For now I think we should be good with just BTC/ETH for a while.

                            Very much in favor of this proposal. High time the treasury starts taking in some ETH.

                            Shadow - can you elaborate on the idea of assigning ETH a risk free value of 0? We are targeting 5% of the Treasury’s risk free value to be ETH, but then we are going to be assigning said ETH a RFV of 0.

                            Is the rational that we don’t want to mint OHM from even an arbitrarily large amount of ETH?

                              hippopotamus presumably its because ETH is a volatile asset (vs. stables) and therefor attributing anything greater than zero would effectively remove the "RF" from "RFV".

                                  Madbreaks I think longer term we could hold RAI as a stable asset versus ETH. i.e. Exposure with much volatility.

                                    100% in favor. If we want to be the decentralized currency of DeFi this is a step we have to take. Although not minting OHM when bonding ETH, could have an effect on our runway, I believe this is a small price to pay for minimizing our risk of volatility. The proposed 5% max will help with this too. Great first step to accumulate ETH and to set us up to take even bolder steps in the future.