Launch $OPIUM bonds on Olympus Pro to sell
$OPIUM at a discount for
Uniswap V2 DAI/OPIUM LP tokens.
- Amount: 60’000 OPIUM
- Period: 1 month (4 weeks)
- Vesting: 7 days
Olympus Pro is the new industry-standard platform to help protocols acquire their own liquidity. Protocols no longer need to pay out high incentives to rent liquidity, while also guaranteeing the permanence of liquidity to facilitate transactions.
Olympus Pro solves for liquidity problems by providing bonds-as-a-service for a small fee.
Instead of staking their LP (liquidity provider) tokens for farming rewards in a pool 2, users can exchange their LP tokens for the protocol’s governance tokens at a discounted rate. This is done through a process called Bonding. As the protocol never sells these LP tokens, the liquidity is effectively locked within its treasury.
Simply saying Olympus Pro allows DAOs to purchase LP tokens from liquidity providers in exchange for their native token at discount and become the owner of the token liquidity on DEXes.
Protocol Owned Liquidity guarantees users that there is always sufficient liquidity for normal market operation.
It may improve and replace in future the way that Liquidity Mining works. Current Liquidity Mining just gives away free $OPIUM tokens and doesn’t guarantee the sustainability of the liquidity on DEXes.
By selling $OPIUMLP tokens for LP tokens at discount, the protocol will reward those, who perform long-term contributions to DAO and permanently lock LP tokens in DAO’s treasury.
Paid out $OPIUM tokens will be vested over 7 days period, which will ensure discount buyers hold their positions.
Similar reason as the neighbor proposal for Liquidity Mining: to reduce the correlation of $OPIUM from the price of
1INCH and make it more sustainable to market fluctuations.
Olympus Pro supports bonds of ERC20 tokens, thus Uniswap V3 can not be used. Uniswap is the biggest DEX in terms of network effect and volumes, so this seems to be a rational choice to pick a battle-tested DEX.
- Purchased LP tokens increase DAO’s treasury
- DAO will own LP tokens and ensure long-term liquidity provision
- Sold $OPIUM tokens may cause short-term sell pressure
- Ask for Olympus DAO assistance in deploying of the Olympus Pro for Opium DAO
- Allocate 60’000 OPIUM to sell for LP tokens via Olympus Pro over 28 weeks period with 7 days vesting period
As the current proposal is only experimental, we can measure its effects and performance with time and propose additional allocations of $OPIUM tokens on the same or different conditions in the future.
Also in case of the experiment’s success after some time we can launch bonds for
G-UNI DAI/OPIUM (Uniswap V3)