Popoo

  • Sep 15, 2022
  • Joined Oct 29, 2021
  • In OIP-60: Hire a market maker

    gsr_nyc I think the assumption that OHM will be trading above 500 in 12 months time (let alone above 1000) is pretty questionable. What will GSR do if OHM is worth $140 in 12 months time (our strike's 9bln valuation) and you simply dont have enough inventory to provide liquidity on key centralized exchanges? What will you do if market cap is same as now with less than a million USD of OHM inventory? My guess is you would submit a proposal for another loan, resulting in more dilution for DAO. Our proposal is simply more realistic and shows understanding of where everything is most likely heading.

    I strongly believe we should be pushing for gOHM to be the main listed token everywhere and let OHM exist in the background, abstracted away by staking mechanics. It's true that exchanges are not going to be thrilled to list token with zero volume, but that's exactly where we, market makers, come in. Olympus is not an ordinary project and explaining to exchanges that listing gOHM would solve all their problems with regards to staking and rebases is much more realistic than expecting Binance or Coinbase to implement complex features.

    And finally on the topic of defi - how do you plan to provide liquidity across L2s without converting OHM into gOHM (thus breaking the promise not to stake)?

    • In Balancer Pool implementation & LBP funding approval - request for comment

      Summary

      The DAO proposes to seek authority from the community to launch an OHM-ETH-DAI (with proposed weights of 50%, 25%, 25% weighted) Balancer pool with funds from the DAO treasury with $25 million worth of OHM and $12.5 million each of DAI and ETH. Establishing this pool will make OHM a liquid asset in the Balancer protocol and therefore allow new protocols to use OHM for their fundraising using Balancer LBPs - see: Liquidity Bootstrapping Pool (LBP) LBP token launch auctions.

      This proposal would also seek authority for the DAO to carry out an LBP funding program, in appropriate circumstances. This would involve loaning treasury OHM to approved and vetted partners for the required non-native portion in commencing Balancer LBP pools for initial fundraising (pools would usually start with weights of 5%OHM- 95% governance-token). The loaned OHM will not be provided unless it is to an LBP pool being controlled at all times by a multisig with a majority of reputable signers - either individuals or organizations with a verifiable good reputation. A cap of no more than $10 million in OHM would be available to be loaned at any time. Olympus may charge the loaned projects a fee to be paid in the project's native token for the service.

      Motivation

      A number of protocols have approached the DAO concerning an intention to conduct their token public auctions in OHM and to date there has not been sufficient OHM liquidity on the Balancer platform in order to achieve this - establishing an OHM-ETH-DAI liquidity pool would enable this.

      The Balancer liquidity pool established by Olympus would increase the network effects of OHM across another trading venue and further increase volume exposure of OHM, generating pool trading fees.

      All tokens utilized for the liquidity pool will come from the DAO treasury. Currently the DAO holds a large amount of underutilized OHM. It is imperative that we utilize this OHM to bring value to the Olympus ecosystem - establishing an OHM-DAI-ETH liquidity pool on Balancer will allow projects to fundraise in OHM and will also earn Olympus pool trading fees. The liquidity pool will require up to $25 million of OHM, $12.5 million each of ETH and DAI from the treasury. At time of writing, the DAO treasury currently holds $38.5M ETH, $69M DAI and $462M OHM.

      While it is important to establish liquidity on Balancer so protocols can publicly raise in OHM - one service of further assistance we could provide to reputable and vetted projects, is an LBP funding program. This program would allow Olympus to help facilitate the raising in OHM by lending protocols the non-native pool share of their LBP for a very short period of time. For example, a project that:

      • Seeks to provide 5% of its total supply for LBP

      • launch with $100 million fully diluted valuation

      • have starting weights of 5%-95%

      Would need just $250,000 worth of OHM to commence its LBP pool.

      Providing LBP funding by loaning OHM, would be conditional upon the LBP pool being controlled at all times by a multisig with a majority of reputable signers. This would be either independent individuals or organizations with a verifiable good reputation. A cap of no more than $10 million in OHM would be available to be loaned at any time. Olympus may also charge the loaned projects a fee to be paid in the project's native token to be determined by the DAO. Projects must undergo strict due diligence, conducted by Olympus DAO contributors, prior to being accepted for the LBP funding program. This is in order to ensure that projects and their teams are of sufficient reputation and quality and have sufficient operational security - so there can be satisfaction that they will not pose a risk to Olympus’ reputation.

      Proposal

      Approve the DAO treasury to seed a $50 million Balancer pool with $25 million of OHM and $12.5 million of each of ETH and DAI (50%, 25%, 25% weighted) - in order to facilitate LBP token launches in fundraising in OHM. Authorize the DAO treasury management contributors to adjust pool size to decrease or increase the amount of the assets in the pool as necessary with a ceiling of$ 75 million in DAO owned pool value. Adjustment may be necessary in order for the pool to capture further trading revenue or if the assets are being underutilized to remove them back to the treasury to reduce risk. Additionally, the DAO requests pre-approval to conduct a migration of the Balancer pool to Curve v2 pool - once the Curve v2 pools launch - should the treasury management contributors consider it provides a better solution. The DAO must provide 5 days notice to the community prior to any pool migration.

      Also approve the DAO to carry out an LBP funding program. This would involve loaning treasury OHM to approved and vetted partners for the required non-native portion in commencing Balancer LBP pools for initial fundraising (pools would usually start with weights of 5%OHM- 95% governance-token). The loaned OHM will not be provided unless it is to an LBP pool being controlled at all times by a multisig with a majority of reputable signers - either independent individuals or organizations with a verifiable good reputation. A cap of no more than $10 million in OHM would be available to be loaned at any time. Olympus may charge the loaned projects a fee to be paid in the project's native token for the service. Projects must undergo strict due diligence, conducted by Olympus DAO contributors, prior to being accepted for the LBP funding program. This is in order to ensure that projects and their teams are of sufficient reputation and quality and have sufficient operational security - so there can be satisfaction that they will not pose a risk to Olympus’ reputation. All loaned OHM must be returned to the treasury upon the finalization of the LBP fundraising pool.

      Please let us know what you think!