Olympus Pro - Allocate funds for Olympus Pro

Summary

This is a forum post to discuss the pros and cons of a proposal to implement a bond program for Ooki DAO to own it’s liquidity using Olympus Pro.

Details

Protocol owned liquidity is the future of liquidity incentive programs. By implementing an OOKI-ETH bond program on Olympus Pro, OOKI DAO will be able to distribute OOKI tokens to more users, while accumulating it’s own liquidity.

The proposal to integrate with Olympus Pro would sell OOKI at a discount in exchange for OOKI/ETH SLP tokens. The bond discount rate is set by the market. Bond prices are decreased incrementally over time until a bond is purchased which then pushes up the price of the next bond.

Ooki DAO will be featured on Olympus Pro dashboard, a unified marketplace for bonds from a multitude of protocols. A presence on this interface will be invaluable in reaching new investors, much like the value of listing on an exchange.

Olympus Pro

Olympus Pro provides a service offering expertise in bond contract management to support DAO’s, such as OOKI DAO, who are interested in owning their own liquidity. This service includes providing the UI for bonds and maintaining bond control variables to balance emissions with liquidity accumulation.

In exchange for the implementation and community engagement, Olympus would take a 3.3% on all OOKI bonds sold. Olympus will use the OOKI earned as backing for the intrinsic value of OHM, which would act as a supply sink for OOKI.

OOKI bonds would be offered with a week-long vesting period, which helps prevent immediate price impact from discounted tokens. This aligns the goals of the protocol with those of bond participants. Typically, higher bond volume is seen when users expect the price of the token to increase during the vesting period.

Funding Requirements:

To participate in the OOKI Olympus Pro liquidity program, this proposal requests OOKI DAO approve allocating $1.5m of OOKI for SLP.

The $1.5m worth of OOKI Tokens would be used for protocol owned liquidity through the Olympus Pro bond offering. This would target $667k liquidity purchase per month over the next three months. Ooki would generate onchain revenue from LP fees generated as an owner of this liquidity.

Program Success Metrics:

• Discount rate < 10% on bonded OOKI

• Minimal impact on OOKI price

• Permanent liquidity source

• Increased treasury value from liquidity that also earns trading fees

• Exposure to paired asset in liquidity pool (ETH)

• Ooki DAO can stake its LP tokens to provide additional runway

If consensus is achieved to proceed following forum discussion this proposal will progress to Snapshot vote for offchain voting and if it passes then to onchain vote.

Update 3/7

This proposal has been submitted for onchain vote and was bundled with a few other governance proposals including:

3 Likes

I will support this proposal!

1 Like

I have some questions about:
How much will it impact to the price?
Will this release Chainlink feed?
And what are the benefits for holders? In short, medium and long term.

My knowledge is very basic about these matters:
Could the treasury do this for its own?

Thank you

The proposal is to diversify the treasury and increase DEX liquidity.
Increasing DEX liquidity will have the Chainlink price feed enabled.

Enabling the Chainlink price feed for Ooki will then lead to:

  1. Activation of the Ribbon Covered Call strategy.
  2. Borrowing and lending of the Ooki token.
  3. Enable activation and distribution of rewards to Ooki and Ooki/SLP liquidity token stakers.

So this proposal is beneficial for holders of the Ooki token and for the Ooki.com protocol in general.

2 Likes

Thank you Frank for the reply

1 Like

I’m not sure this is the best idea for us. Not ruling it out, but if we want sustainable liquidity, I think Tokemak is a much better bet and a much better model (no IL, no need for ETH - just give them OOKI and get equivalent TOKE in return and they will add it to pools).

They have an upcoming CORE voting event for the next reactors they add, sometime in the next few weeks.

Basically all of these options come to the same thing - the DAO is paying OOKI (in different ways) to someone to increase liquidity of the OOKI/ETH DEX pair.

This is fine - it’s important to have deep liquidity for OOKI/ETH on a DEX (since we mainly have liquidity on Binance right now) and we need a lot more liquidity to get a Chainlink price feed for OOKi which is needed for Ribbon Finance vaults and other things.

But I think the OHM POL liquidity method is overrated and far less flexible than the Tokemak version and more expensive.

It would probably be cheaper to just have a Curve factory pool for OOKI/ETH and pay bribes (although that would be renting liquidity instead of owning, which is why I prefer the Tokemak route).

The only reason to go for the Olympus Pro offering now is because Tokemak will take longer (and if we don’t get a CORE Reactor now, it will be even longer till permissionless Tokemak pools are ready).

Since there is plenty of Binance liquidity the only reason to do this urgently is to get enough OOKI/ETH liquidity to get a Chainlink price feed.

If that’s the only goal, why not just do a normal liquidity mining program till Tokemak is ready? We don’t need that much more liquidity to get the Chainlink feed.

If we do end up doing the Olympus Pro program, it should be strictly limited to whatever is needed to get us a Chainlink price feed - utter waste to do any more than that.

3 Likes

I’m in favor of just doing whatever is necessary to move this project forward ASAP — there is already too much delay and things are moving too slowly. Just do what we need to do to get chainlink feed ASAP and move forward with other things. In other words, let’s just MOVE

1 Like

I support this proposal

I don’t support this and I support BadriNat’s proposal

I will support this proposal.