anonohmous

biscuit well biscuit … with the vesting V2 (4,4) bonds.. assuming you're 3,3 and have the time / means to sell and snipe bonds.. you'd want to bond everytime the margin is > than the friction to sell and rebond right?

This to me finally delivers on a pseudo locked stake type mechanism for those longterm 3,3 ers giving them a straightforward enough means to gain share.. and compete with bondors as they exist today.. and cuts the sell pressure out of the equation while doing it

I'd see myself cutting my bag up into 3 sets of rolling 90 day expiring bonds… or eventually to a vault partner to manage such a strategy

Note: This post refers to a white paper that provides additional details about the strategy outlined below. (View the white paper as a PDF, View the white paper in Markdown.)

Over the last 10 months, Olympus has been optimized for hyper-growth. Bootstrapping efforts have been successful, leading to a Treasury valued at nearly $550 million and a 100,000+ Ohmie strong community across 5 chains. As we mature, mechanisms and structures that were previously unavailable to us (as a function of low capitalization or low participation, for example) become viable, and may be preferable.

In light of this, I propose a next step in the evolution of Olympus toward its vision of providing the digital world with its own currency:

Internal Bonds

The suggestion is that Olympus position itself toward a bond-emphasized model of token emissions and distribution: dubbed here as “Internal Bonds.” These Internal Bonds would be similar to the current "external" bonds. However, instead of providing a token such as DAI or ETH, bonders provide OHM.

For each 1 OHM provided, the depositor is given a note granting their claim to X OHM at Y date. Bonds set to expire at the same time would be tokenized as composable ERC20s. For example, a set of bonds that expire on September 15, 2022, or December 15 2022. At expiration, bond holders would be able to claim XX OHM.
These liquid markets would allow us to minimize and regulate bond yields (as they now trade in a two-way market), and maximize protocol benefit of token emissions.

Bond Vaults, Trading and Lending

To help facilitate the buying of OHM bonds, we would strongly encourage third party development of bond vaults. These vault applications would allow users to engage in automated bond strategies. We expect vaults to compete on strategies that will optimize yield for depositors. They may also serve as social groups akin to houses or clubs, creating new sub-communities within the larger Olympus community.

Those directly interacting with bonds would still expect to find liquidity because:

• Bonds may be traded: As standard ERC20 tokens, we can expect markets to emerge where participants can trade their bonds on DEXs for OHM before expiration at their fair value, as determined by the market.

• Bonds may be used as collateral: We can also anticipate that bond lending markets would emerge where individuals will be able to borrow other assets against their bonds, increasing capital efficiency while segmenting risk to the broader Olympus economy.

Implementation Overview

The intent is not to introduce this in the near term. If signaled to be pursued, we would aim to implement this in the coming twelve to eighteen months. Action items during that period include, but are not limited to:

• Research and development, especially with regard to automation and PID control.

• Extensive modeling around the proposed implementation to properly understand potential outcomes and our means to manifest intended behavior.

• Contract audits to ensure protocol safety.

• Encouragement, and possibly incubation, of vault protocols and other relevant supporting entities.

• Market maturity, to ensure participation and competition within the bond marketplace.

• Education and communication to thoroughly inform and prepare the Olympus community and all relevant partners and participants.

Signaling

This post seeks to determine whether the overall structure and design is worth pursuing in the eyes of the community. I believe it would strongly enhance our prospects of long term success following thorough preparation. There is a lot more in there than what is listed in this post, and I hope I can count on your help in dissecting, discussing, and communicating the ideas presented. This is the first of several papers I and others hope to publish in the coming weeks focused on determining and quantifying our long-term goals, designs and milestones in the development of this network. I am excited to dig in.

Please comment below whether you:

• Support the ideas presented

• Do not support the ideas presented

Link to the PDF or Markdown if you did not see it above.