memes and dreams @OlympusDAO
Joined December 2020
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- Following 493
- Followers 65,149
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Zeus Ω |3, 3| retweeted
Olympus DAO just swapped 50m DAI into FEI
Thanks to this and other protocol contractionary measures, the FEI peg is tighter than ever 💪
Protocol owned liquidity is so powerful. The Tribe and @OlympusDAO will make it through tough times stronger together 🤝
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Zeus Ω |3, 3| retweeted
Hey @ohmzeus I made this for you, and I’d be honored if you’d accept this gift. It’s already minted and ready to go, but my ego has made me tell you about it before I send it 😅
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Zeus Ω |3, 3| retweeted
Inverse Bonds have been deployed and are live!
Initially, the policy team has deployed Inverse Bonds with a capacity of $200k per day.
Check out Inverse Bonds here ohm.fyi/0sb
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GIF
building on this with OIP-93 (mint & sync), while protocol-provided liquidity falls from 17% supply to 10%, third parties might LP and bring that back up
the key there is that that is existing, circulating supply and not non-circulating (protocol-owned)
historically, 5-10% of the supply of OHM sat in liquidity pools. as of right now, 17% of supply is being provided in protocol-owned liquidity.
so, there's a deviation from the norm there
2/x
Show this thread
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Zeus Ω |3, 3| retweeted
Over the past few weeks I've been working with solidity devs on their protocols and had some thoughts about contract architecture. I've summarized these thoughts into this doc:
palm-cause-2bd.notion.site/T…
Here are the main points for a TL;DR:
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now, lets put the two of these together
if the proposal passes, it:
- reduces AMM bid/ask liquidity, pulling some assets back into reserves as a result
- provides bid liquidity by expending yield and some of those reserves
7/x
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no longer quite as crazy as it seemed. really, the net effect here is that of little change to bid-side liquidity and a reduction of ask-side liquidity
and that makes sense! there's already precedent of low bond activity as we sit at backing
8/x
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I think of the ask side of an xyk pool as an alternative means to bonds: the protocol is selling currently non-circulating tokens to the market on a bonding curve
all this really does is reduce the amount of supply (remember, a lot) available on the ask side
9/x
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now, i do draw issue in one place, and that is the language used to communicate the goals and carry out
the intent here should not be to pump the bag
the intent should be to make OHM the safest place to possibly go right now
10/x
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if you can't tell, things aren't looking too hot out there. liquidity has dried up across the board. nothing can catch a bid. its just a slow burn to zero on a lot of things (to date, OHM included)
11/x
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Olympus has the means to become very attractive in this environment. $200k per day means 0.05% of total supply gets bought and burn every single day
thats (as a % of supply) equivalent to 2x LFG's bitcoin stack every week, or 2x Macrostrategy's bitcoin stack every month
12/x
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this proposal is a success if it makes OHM an attractive safe-haven in this environment
this proposal is a failure if it pumps the token at the expense of the treasury
13/x
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with that, the proposed moving average should serve as an absolute cap on activity, not a target
the former is responsible, the latter is folly (as the length makes the metric arbitrary)
if that is upheld, I see the proposal as quite sensible
14/x
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as a final note, i'll just point out that there were single days back in September/October in which the treasury grew by $8-10m. seems a bit absurd to not be willing to expend that over a month at/near backing
as a wise man once said, scared money don't make money
fin
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as a TL;DR on the proposal, OIP-94 consists of two main components:
- a reduction of protocol-provided xyk liquidity
- the inception of protocol-provided bids (inverse bonds)
lets look at each independently
1/x
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historically, 5-10% of the supply of OHM sat in liquidity pools. as of right now, 17% of supply is being provided in protocol-owned liquidity.
so, there's a deviation from the norm there
2/x
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OIP-94 proposes reducing this by 7%, back to the historical 10% low (aka 20% liq/mc; LP has two sides)
i'll refrain from any comments here until we touch on point two
3/x
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the second component of the proposal is the initiation of what I will dub 'indiscriminate inverse bonds'. in short, this is an expense of treasury agnostic to backing per OHM token
4/x
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the proposal suggests $200k, or ~6 bps (0.06%) of the treasury, per day as a benchmark. on its own, this would deplete the treasury over the course of 1650 days or 4.52 years
5/x
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