Hey all! As my username suggests, I'm Max from the BarnBridge core team; as the thread title suggests, I wanted to brief the OlympusDAO community on a new product we're launching in the coming week because it could serve an interesting role within your treasury strategy. We've got quite a few Ohmies among our ranks that have been clamoring for more collaboration, and so hopefully this could be a way forward on that.
Our SMART Alpha product allows you to deposit an asset into a pool that has two sides: one junior, one senior. If price goes up for a given period, senior positions hand over a fraction of their deposits to juniors. If price goes down for a given period, junior positions hand over a fraction of their deposit to seniors. As a result, seniors get absolute price protection and juniors gets cheap, liquidation-friendly leverage. At launch, time periods will be for a week long.
You can read more about SMART Alpha in the following three articles, and our simulator is now live.
So - what does this have to do with the OlympusDAO treasury? SMART Alpha effectively creates levered and dampened-volatility versions of existing ERC-20s, meaning that, for one, users can hedge their portfolios conveniently without wandering into options or perps land. One could imagine a scenario in which OlympusDAO allocates a few points of its ETH exposure to a senior ETHUSD position that essentially earns ETH-denominated yield whenever there is a down week. Moreover, as we expand the amount of pools, assets that may previously have been inappropriate to serve as treasury assets could prove to have senior versions that have an appropriate risk profile.
@ECAndre will be hosting me for a conversation later tonight at 5 PM EST for anyone that has questions, and deposits for our first epoch next Monday should be open by this Thursday.
