Summary: Seek authority from the community to whitelist LUSD native staking into Liquity Stability pool and stake up to 100% of our LUSD reserves.

Motivation: The treasury and policy teams at OlympusDAO have placed focus on acquiring both yield-generating governance and stable assets to bolster the risk free value of the treasury.

Depositing assets natively for yield generation into protocols will allow the treasury to grow in both RFV and governance tokens without additional material risk that is already inherent from the holding of those assets.

Risk Evaluation: The stability pool on Liquity is critical for the health of the protocol and the peg of the stablecoin. If the stability pool was to be exploited, the protocol could be impacted potentially to its entire value of each unit of LUSD. With Olympus staking it’s LUSD into the stability pool it helps to reinforce the resilience of the stablecoin and the DAO’s investment - as well as earning yield. 

Proposal: We propose to exempt LUSD from the allocation limits presented in the Treasury framework and allow the Treasury team to allocate up to 100% of Olympus LUSD reserves to the Liquity Stability Pool. 

Exempt LUSD from the treasury allocation limits.

This poll has ended.

    json yes please. This sounds great. Thank you for your hard work and persistence.

    The stability pool on Liquity is critical for the health of the protocol and the peg of the stablecoin

    Is the stability of the pool at risk?

    Perhaps I'm looking for subtext, but it almost seems like treasury is concerned about LUSD.

    No doubt staking 78m LUSD for 12%APR is nice

    • json replied to this.

      jesusfchrist No but the yield is nice and providing that much further reinforces the stability pool. So we will earn LQTY and ETH and then we can stake that LQTY for LUSD + ETH.

      In principal creating exemption categories to a framework, imo opens the door for uncontrolled risk allocation out of the oversight of the community. I would increase it, if necessary and if the risk assessment of the Liquity Pool was a success, but would not exempt any asset from the Framework. Alternatively, create a non-volatile Treasury Framework, or Amend the current framework. in this way we avoid opening the door and setting the precedent for exemptions. My vote is to reframe this. Not to vote for the exemption.

      10 days later

      json Yes please. I wish we were doing this already. Imagine how much cheap ETH we could have amassed over the past couple weeks. Thanks for posting this. Looking forward to it🙂

      2 months later
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