[ABIP-15] [RFC] - Flex or Sell that OHM?

Summary

Olympus DAO is moving towards a range based currency and reducing the APY significantly.

Proposal is to guage between options on what to do with the OHM Abachi holds. Discussion is encouraged.

Motivation

The treasury team feels the price will now stagnate for OHM and trade slightly below the backing which is currently around $11. This is because with the lower emissions OHM transitions into a much more of a stable model and risk adjusted this will range below $11 (currently its around 10.5).

This proposal is to gauge community advise on what to do moving forward since our base thesis for OHM was because of its rebasing nature.

OHM will still focus as the DEFI currency and we can still use it as that. There are some really good options for that also.

Overall Abachi is down in USD terms for OHM but we are up in terms of ETH

The options we have:

  1. Open an OIP with Olympus DAO to receive a flex loan against our OHM and launch an LP on mainnet for OHM/ABI. This will also require the bridge which we have already approved. 75% of gOHM will be used for a flex loan and 25% for inverse bonds.

Flex Loan:
A new product by Olympus DAO which allows us to loan 100% LTV against our OHM. So essentially we will be putting in 40gOHM and getting the equivalent amount of OHM back as a loan. This is a 0% interest loan with no risk of liquidation.

The loan is paid whenever we decide to (no interest) and the position accrues the base yields automatically (so its essentially repaying itself).

  1. Sell gOHM against ETH and launch an ABI/ETH pool. 25% will be used for inv bonds.

  2. Launch inverse bonds against gOHM. 100% gOHM used for inv bonds.

Methodology

  1. To launch an OHM/ABI pool on balancer, we will need to open an OIP with OHM which we suspect should pass without issues. We are using OHM as its intended use case. No other pairs will be launched until voted on later if demand increases. The only pair will be ABI/OHM.

  2. Second option is simple, the treasury team will try and sell gOHM for the best ETH price. This should net us slightly above 50 ETH.

  3. Inverse bonds will be launched to allow folks to bond back ABI for backing value.

  • OHM/ABI pool + Inv Bonds
  • ETH/ABI pool + Inv Bonds
  • Inverse Bonds Only

0 voters

Can the Flex Loan option be expanded on a little? It’s a loan from Olympus DAO whereby they provide OHM for a liquidity pool to be created on mainnet…so ABI/OHM, right?

What are the benefits of this option and the repayment terms etc.?

Made an edit to the rebasing. Its not eliminated but reduced to below 10%

1 Like

Added information around a flex loan.

1 Like

Yes to unv bonds, no to selling OHM. Loan is cool, but going to Eth with such low liq? I would just borrow more stables against gOHM

2 Likes

Current liquidity on polygon is ~100k also. We hope to be able to incentive the LP so more people stake LP.