[OHM] - OLYMPUS DAO Collateral Onboarding Application (MIP6)

Olympus DAO, as one of the largest DAI holders, is honored to submit the following application for the DAO to consider wsOHM as a collateral to be onboarded.

1. Who is the interested party for this collateral application?
Olympus DAO

2. Provide a brief high-level overview of the project, with a focus on the applying collateral token.
Olympus is a Decentralized Reserve Currency protocol based on the OHM token. Each OHM token is backed by a basket of assets (e.g. DAI, FRAX) in the Olympus treasury, giving it an intrinsic value that it cannot fall below. Olympus also introduces unique economic and game-theoretic dynamics into the market through staking and bonding.

At a high level Olympus DAO features a single token, OHM, which is both the system’s stable asset and its governance token. OHM primarily draws its value from its underlying basket of collateral, which at launch consisted solely of DAI and was then extended to hold FRAX and ETH. OHM can be staked in return for sOHM which allows OHM holders to accrue protocol profits as well as participate in Olympus DAO governance. When the Olympus DAO treasury distributes profits to the staking contract, stakers’ sOHM balances rebase up to match the new amount of OHM in the contract so 1 sOHM always equals 1 OHM. In this way stakers receive compounding yield without them manually harvesting and reinvesting their profits.

Users interacting with Olympus can i) buy OHM from Sushiswap with DAI, ii) buy OHM from Uniswap with FRAX iii) Bond DAI or FRAX for OHM at a market regulated discount.

Olympus pioneered the bonding concept for two main purposes.

  1. Reserve BOND.
    Bond offered to users that increases Olympus Reserves to back the intrinsic value of the token.

  2. Liquidity BOND
    A bonding mechanism that allowed the protocol to own 100% of its liquidity pools. LPs holders bond their shares, in exchange for OHM at discount.

  3. Olympus Pro

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 partners protocol’s governance tokens at a discounted rate.
Within a week of launching Olympus pro, has been able to secure 750K for its first 6 partners.
(More details will be provided in the Olympus Pro proposal)

Since launch in March 23, 2021, the protocol has accumulated 301 MM in net worth, distributed among treasury holdings and protocol owned liquidity of which as of August 31, 2021, 36.1MM DAI are in the [treasury]
and 99.5MM DAI in the OHM-DAI v2 pool in sushiswap making Olympus hold 136MM DAI, a top 8 holder. !

We strongly believe that there is a natural synergy between Olympus and Maker. Adding wsOHM (the wrapped Staked OHM) will allow DAI to extend reserves to one of their largest holders and promoters.

Our current OHM-DAI pool is Sushi has been top volume and liquidity for several weeks.

3. Provide a brief history of the project.

Olympus DAO was announced on February 1, 2021 and launched on March 23, 2021. The project was launched with an IDO (Initial DAO Offering) to all Discord active members that joined the community before March 3. An initial 360 members (Ohmies) participated of the IDO, investing 200,000 DAI.

Today our community is the most vibrant of all DeFI with 22K Members. In its short life Olympus growth has been explosive being the protocol with the highest revenue in the industry, with an annualized revenue of approximately 3.5B.

Even though at launch backing per OHM was 1:1 the growth in treasury and mainly DAI holdings increased backing almost 34 times.

More information can be found at

Dash Board

4. Link the whitepaper, documentation portals, and source code for the system(s) that interact with the proposed collateral, and all relevant Ethereum addresses. If the system is complex, schematic(s) are especially appreciated.

Olympus DAO Main Links

Web Site
Documentation
Github
What is Olympus DAO VideoMessari
LivetheLife.tv

Relevant ETH Address

OHM: 0x383518188c0c6d7730d91b2c03a03c837814a899
Frax/OHM: 0x2dcE0dDa1C2f98e0F171DE8333c3c6Fe1BbF4877
DAI/OHM: 0x34d7d7Aaf50AD4944B70B320aCB24C95fa2def7c
sOHM: 0x04F2694C8fcee23e8Fd0dfEA1d4f5Bb8c352111F
wsOHM: 0xCa76543Cf381ebBB277bE79574059e32108e3E65

Bonding/Staking

Dai Bond: 0x575409F8d77c12B05feD8B455815f0e547973
SLP Bond: 0x956c43998316b6a2F21f89a1539f73fB5B78c1
FRAX/OHM Bond: 0xc20CffF07076858a7e642E396180EC390E5A0
Frax Bond: 0x8510c8c2B6891E04864fa196693D44E6B6ec2
wETH Bond: 0xE6295201CD1ff13CeD5f063a5421c39A1D236
ETH Bond Deposits: 0x2B0Fbb411D355979005ab4F003d99D4AAdF33639
Staking: 0xFd31c7d00Ca47653c6Ce64Af53c1571f9C36566a
Staking WarmUp: 0x2882A5CD82AC49e06620382660f5ed932607c5f1
Staking Helper: 0xC8C436271f9A6F10a5B80c8b8eD7D0E8f37a612d
Distributor: 0xC58E923bf8A00E4361FE3f4275226a543D7D3ce6

DAO and Treasury

DAO: 0x245cc372C84B3645Bf0Ffe6538620B04a217988B
Treasury: 0x31F8Cc382c9898b273eff4e0b7626a6987C846E8

5. Link any available audits of the project. Both procedural and smart contract focused audits.

Audits:

Peckshield:

Omniscia:

6. Link to any active communities relating to your project.

Discord:
Medium:
Forum:
Twitter:

7. How is the applying collateral type currently used?

Currently the applying collateral is used to participate in Olympus and in the growing ecosystem of partnerships.

  1. The token allows user to be exposed to auto compounding APY in the DAO.
  2. User can participate in all DAO Decisions.
  3. User can post sOHM as collateral in Rari and take DAI loans.
  4. DAO is actively working with 33 potential partners.
  5. OHM is a fraction of Olympus DAO Treasury that allows user to participate in the protocol revenues by staking their OHM.

8. Does one organization bear legal responsibility for the collateral? What jurisdiction does that organization reside in?

Olympus is fully Decentralized.

9. Where does exchange for the asset occur?

Exchange occurs in Sushiswap, Uniswap, OlympusDAO.finance, Rarifuse Pool #18 and Pool6 (as collaterals)

10. (Optional) Describe whether there are any regulatory registrations for the token and provide related documentation (including an explanation of any past or existing interactions with any regulatory authorities, regardless of jurisdiction), if applicable.

The are no regulatory registration or interaction with regulatory authorities.

11. (Optional) List any possible oracle data sources for the proposed Collateral type.

Olympus is currently listed in chainlink as the pair OHM/ETH and OHM/USD in Matic.

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so dai will be partially backed by ohm, which is partially backed by dai…etc etc

i think its time the community stops treating olympus as anything but an intricate ponzi, this proposal if passed would be incredibly irresponsible for the entire defi ecosystem and would prevent me from further holding dai

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That’s like saying ETH is used as collateral for DAI and then people buy more ETH with it? I don’t see anything wrong with that, DeFi ecosystem is about collaborating and creating systems that work well together.

Olympus has supported MakerDAO since day one by prioritizing DAI over any other stable coins in the ecosystem. Our treasury is the 8th largest holder of DAI if you combine the DAI in the LP we own. This ponzi topic is getting a tad old now, not quite sure how else Olympus has to proof itself.

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eth isnt partially backed by dai tho

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It’s a systemic threat to the entire system, I am not willing to take that risk and I’m not alone with that opinion.

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Could you go more in depth on how it’s a threat to the entire system?

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I mean, I would love to answer any concerns but you haven’t really said any compelling reason as to why it would be a “systemic threat” to the entire DeFi ecosystem.

Would love to hear more of your reasonings!

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You made a claim that this proposal and OHM is a “systemic threat to the entire system”, but haven’t backed up that claim with any reasoning. Aside from it’s a threat because I said so.

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you imply Maker owe’s Ohm a listing, i don’t see that, bring reasons that make sense, i don’t have to bring reasons why to not.

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your incentives dry up one day, what happens then? you think people still pay 0.5% to mint then?

So because something may or may not happen in the indeterminant future this entire proposal is a waste of time and should be canned? That still doesn’t sound like solid reasoning to me.

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I mean DAI is better collateral than LUSD right? @MRKWHG and @excali these aren’t really a good arguments for not accepting it as collateral - only that the CR should be low.

Let’s try and understand your concerns at a specific level and see if they can be addressed. Saying things like “Could you go more in depth how it isn’t ?” aren’t helpful - if you have a concern say what it is

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I would never use Dai ever again, or any protocol accepting it as collateral, it’s that simple, because I’m not willed to accept the risk of those ponzinomics collapsing, there is only risk, no reward

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This does not an argument make. You are just making blanket statements. Let’s do some unpacking.

Who is “those ponzinomics”, please define what exactly ponzinomics is and how there is only risk and no reward.

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so maker is willing to loan “dai” against any of their “approved collateral assets” but is not willing to accept an entity that uses dai as part of their backing… so maker does not like itself or cannot accept anything that uses dai as a partial backing… this beckon’s the question, wut does maker see that is wrong with dai, that maker wont accept an entity that uses dia as a partial backing asset?

“I’m not willed to accept the risk of those ponzinomics collapsing,” does this mean maker is a ponzi?

any explanation to this conundrum?

smoove brain here, although i’m sure the explanation is simple right?

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