IceCream

  • Jul 5, 2022
  • Joined Jan 13, 2022
  • In TAP-11 Ribbon Finance Whitelist

    Would be a grave mistake to put any amount of treasury assets into Ribbon vaults.

    Ribbon sells weeklies a close % from market price, and their vaults have a reputation for blowing up often because an automated strategy like that has way too much exposure to tail events, which are all too common in crypto.

    Further, the APRs displayed on their UI are highly deceptive. Their BTC vault currently shows 23% APY, however their vault performance tells a different story—0.77% returns since September 12, or 1.3% annualised.

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    Let me repeat that—Their vault says it has a 23% APR, but their returns are actually 1.3% APR. That too before Ribbon's 2% TVL and 10% performance fees. Olympus would have lost money had it been in this vault for the past year.

    Ribbon's stETH vault is a similar story. 22% APR displayed, when in reality the yield is NEGATIVE!

    Image

    Even worse, all of Ribbon's automated put/call selling vaults blow up very frequently. Olympus would have lost over 20% had it deposited in Ribbon's ETH vault since early November.

    All in all, Ribbon runs strategies with a track record of blowing up, at best breaking even, and depositing any amount of treasury assets in Ribbon vaults would be a mistake. If you would like to learn more on why Ribbon's vaults are an extreme no-go, read this paper by Ledger Prime: https://www.research.ledgerprime.com/p/a-quantitative-analysis-of-defi-option?s=r

    Ledger Prime concludes that it is best if "parties don’t systematically sell the same weekly deep OTM covered calls", which is unfortunately EXACTLY what Ribbon does across ALL of its options vaults.

    • In OIP-74: Partnership with JonesDAO

      Summary

      Formalize a partnership to integrate and align JonesDAO and Olympus. JonesDAO will provide Olympus with 3.3% of its governance token at launch, which Olympus can use to stake, govern, and earn a share of protocol fees within JonesDAO. Olympus commits that it will not reduce its exposure to JonesDAO's governance token, and will provide advice and assistance to JonesDAO. JonesDAO will become an official treasury partner of Olympus, generating yield via safe, actively managed and sufficiently hedged options strategies deployed on a portion of treasury assets - subject to an appropriate risk managed pilot under a separate OIP.

      Background

      Options strategies are an incredible source of sustainable, non-inflationary yield, and the platforms that enable them have started to emerge. Platforms like Dopex are building excellent, user-friendly access to crypto options. However, deploying the right options strategies presents increasing complexity, even for sophisticated crypto natives and DAOs.

      JonesDAO eliminates this complexity. JonesDAO is a strategy, liquidity, and yield protocol for options. The protocol has four products:

      Jones Vaults: With 1 click, users will be able to access the best yields with actively managed, fully optimised, and hedged options strategies. The PnL of the vaults is denominated in the vault asset, with the goal being to accumulate more of the asset over time. Jones Vaults will seek to generate risk-averse and stable yields in all market conditions.

      jAssets: Fully composable yield-bearing asset tokens that unlock liquidity and capital efficiency for assets locked in options strategies. For example, a user may deposit 1 ETH in the ETH Jones Vault, and mint 1 jETH. jETH will accrue value as the vault generates yield. The user may lend/borrow jETH, or swap their jETH back to ETH, at any point in time.

      Auxiliary Jones Vaults: These cater to different risk profiles, and will deploy more directional/aggressive options strategies. These vaults have variables ratios of selling/buying options according to their risk profile. Auxiliary vaults cannot be used to mint jAssets.

      Treasury Management: JonesDAO helps DAOs generate risk-averse, sustainable yield on their treasury assets, by whitelisting them for Jones Vaults and devising bespoke options strategies when necessary.

      Tokenomics

      The JONES token is designed for a variety of use cases—governance, fee accrual, liquidity incentives, and superpowers.

      JONES emissions will be directed at jAsset/Asset liquidity pools, Jones Vaults, and lending pools to incentivise deep liquidity and protocol usage.

      Users will be able to lock JONES to receive veJONES, granting them superpowers within the protocol.

      • veJONES holders will be able to vote on gauge weights for Jones Vaults and jAsset pools. This aligns the usage of the platform with long-term JONES holders. For example, depositors in the ETH Jones Vault can purchase and lock JONES, to vote for greater JONES emissions for the ETH Jones Vault.

      • veJONES gauges on jAsset pools and Jones Vault allow the protocol to be incredibly efficient with incentives, as emissions are directed only at the Vaults and Pools that users actually use. As in, the protocol can avoid paying a high APR in JONES tokens to pools that aren't used much. Inflation is optimised.

      • Users can purchase and lock JONES for veJONES in order to earn a portion of protocol fees and additional JONES emissions.

      Distribution

      Max supply: 10,000,000

      Supply at launch: 2,440,000

      Digits: 18

      • Operational Allocation: 15%

        • This allocation is used to handle governance, incentivize community contributions and strategists, help grow the platform and recruit talent, and account for operating and growth costs.

      • Platform Rewards: 42%

        • These rewards will incentivize the use and upkeep of the Jones DAO protocol.

      • Team Allocation: 12%

        • Vested for 18 months distributed using a drip system via a smart contract.

      • Public Sale: 17%

      • Private Sale: 9.67%

        • 3 month cliff, and then vested over 6 months.

      • Airdrop: 1%

        • Split between guarded launch members and Dopex SSOV users.

      • Olympus: 3.3%

        • Proposed allocation for OlympusDAO to be held in perpetuity.

      Team

      Core Members:

      @FroyoFren

      @xenes1s

      @0x_ultra

      Advisors:

      @Halko500k

      @witherblock

      Motivation

      We are Olympus giga bulls. We also share the same values—integrity, decentralization, and empowerment. JonesDAO will help Olympus grow the strength of their treasury and hedge market risk.

      We believe in Olympus’ vision, and want it to succeed. As such, we are committed to devoting our expertise to the expansion, robustness, and growth of Olympus’ excess treasury reserves. In addition to treasury management for Olympus, JonesDAO will also have Jones Vaults for gOHM, bringing deep liquidity to the options market for gOHM and unlocking a new layer of yield for the Ohmies.

      Proposal

      We propose the following partnership between Jones DAO and Olympus:

      JonesDAO provides:

      • 3.33% of its governance token to Olympus, vested linearly over 12 months - so Olympus can take part in our governance - on the condition that Olympus retains and does not dispose of these tokens.

      • Whitelisting Olympus for all current and future Jones Vaults, and bespoke treasury management when needed, to generate safe, sustainable yield

      • gOHM Jones Vaults for Olympus and the Ohmies to earn yield on their gOHM.

      Olympus provides:

      • Recognition of JonesDAO as an official, aligned partner

      • Deposits of discretionary amounts of treasury assets to JonesDAO for management

      • Advisory, assistance, and consultation from its contributors to help with our roadmap and future growth

      • Participation in our governance

      • Recommendation of JonesDAO’s suitable products to appropriate partners and users accessing Olympus products

      • Consideration of integrating of JonesDAO products, including but not limited to the gOHM Jones Vault, to Olympus Pro front-end - provided they are suitably brand appropriate and mature

      Polling Period

      The temperature check process begins now and will run for at least 72 hours. After this, a Snapshot vote will be initiated and open for at least 48 hours.

    • In Request for comment - Partnership with JonesDAO

      Summary

      Formalize a partnership to integrate and align JonesDAO and Olympus. JonesDAO will provide Olympus with 3.3% of its governance token at launch, which Olympus can use to stake, govern, and earn a share of protocol fees within JonesDAO. Olympus commits that it will not reduce its exposure to JonesDAO's governance token, and will provide advisory, assistance, and endorsement to JonesDAO. JonesDAO will become an official treasury partner of Olympus, generating yield via safe, actively managed and sufficiently hedged options strategies deployed on a portion of treasury assets.

      Background

      Options strategies are an incredible source of sustainable, non-inflationary yield, and the platforms that enable them have started to emerge. Platforms like Dopex are building excellent, user-friendly access to crypto options. However, deploying the right options strategies presents increasing complexity, even for sophisticated crypto natives and DAOs.

      JonesDAO eliminates this complexity. JonesDAO is a strategy, liquidity, and yield protocol for options. The protocol has four products:

      Jones Vaults: With 1 click, users will be able to access the best yields with actively managed, fully optimised, and hedged options strategies. The PnL of the vaults is denominated in the vault asset, with the goal being to accumulate more of the asset over time. Jones Vaults will seek to generate risk-averse and stable yields in all market conditions.

      jAssets: Fully composable yield-bearing asset tokens that unlock liquidity and capital efficiency for assets locked in options strategies. For example, a user may deposit 1 ETH in the ETH Jones Vault, and mint 1 jETH. jETH will accrue value as the vault generates yield. The user may lend/borrow jETH, or swap their jETH back to ETH, at any point in time.

      Auxiliary Jones Vaults: These cater to different risk profiles, and will deploy more directional/aggressive options strategies. These vaults have variables ratios of selling/buying options according to their risk profile. Auxiliary vaults cannot be used to mint jAssets.

      Treasury Management: JonesDAO helps DAOs generate risk-averse, sustainable yield on their treasury assets, by whitelisting them for Jones Vaults and devising bespoke options strategies when necessary.

      Tokenomics

      The JONES token is designed for a variety of use cases—governance, fee accrual, liquidity incentives, and superpowers.

      JONES emissions will be directed at jAsset/Asset liquidity pools, Jones Vaults, and lending pools to incentivise deep liquidity and protocol usage.

      Users will be able to lock JONES to receive veJONES, granting them superpowers within the protocol.

      • veJONES holders will be able to vote on gauge weights for Jones Vaults and jAsset pools. This aligns the usage of the platform with long-term JONES holders. For example, depositors in the ETH Jones Vault can purchase and lock JONES, to vote for greater JONES emissions for the ETH Jones Vault.

      • veJONES gauges on jAsset pools and Jones Vault allow the protocol to be incredibly efficient with incentives, as emissions are directed only at the Vaults and Pools that users actually use. As in, the protocol can avoid paying a high APR in JONES tokens to pools that aren't used much. Inflation is optimised.

      • Users can purchase and lock JONES for veJONES in order to earn a portion of protocol fees and additional JONES emissions.

      Distribution

      Max supply: 10,000,000

      Supply at launch: 3,940,000

      Digits: 18

      • Operational Allocation: 15%

        • This allocation is used to handle governance, incentivize community contributions and strategists, help grow the platform and recruit talent, and account for operating and growth costs.

      • Platform Rewards: 45%

        • Distributed over a period of approximately 5 years. These rewards will incentivize the use and upkeep of the Jones DAO platform.

      • Founders and Advisors Allocation: 14%

        • 20% of Founders' Allocation initially staked in liquidity pools

        • 80% of Founders' Allocation and 100% of Advisors' Allocation vested for 1 year distributed using a drip system via a smart contract

      • Strategic Investors & Token Sale: 24%

        • Token Sale: 20%

        • Reserved for future strategic investors: 4%

      • Airdrop: 2%

        • Split between guarded launch members and Dopex SSOV users.

      Team

      Core Members:

      @FroyoFren

      @xenes1s

      @0x_ultra

      Advisors:

      @Halko500k

      @witherblock

      Motivation

      We are Olympus giga bulls. We also share the same values—integrity, decentralization, and empowerment. JonesDAO will help Olympus grow the strength of their treasury and hedge market risk.

      We believe in Olympus’ vision, and want it to succeed. As such, we are committed to devoting our expertise to the expansion, robustness, and growth of Olympus’ excess treasury reserves. In addition to treasury management for Olympus, JonesDAO will also have Jones Vaults for gOHM, bringing deep liquidity to the options market for gOHM and unlocking a new layer of yield for the Ohmies.

      Proposal

      We propose the following partnership between Jones DAO and Olympus:

      JonesDAO provides:

      • 3.33% of its governance token to Olympus, vested linearly over 12 months - so Olympus can take part in our governance - on the condition that Olympus retains and does not dispose of these tokens.

      • Whitelisting Olympus for all current and future Jones Vaults, and bespoke treasury management when needed, to generate safe, sustainable yield

      • gOHM Jones Vaults for Olympus and the Ohmies to earn yield on their gOHM.

      Olympus provides:

      • Recognition of JonesDAO as an official, aligned partner

      • Deposits of discretionary amounts of treasury assets to JonesDAO for management

      • Advisory, assistance, and consultation from its contributors to help with our roadmap and future growth

      • Participation in our governance

      • Recommendation of JonesDAO’s products to appropriate partners and users accessing Olympus products

      • Consideration of integrating of JonesDAO products, including but not limited to the gOHM Jones Vault, to Olympus Pro front-end - provided they are suitably brand appropriate and mature