Olympus DAO is reducing their APY significantly and moving to a range bound model with sustainable emissions. In line with this reduce APY and rebase the tokens at a 5% emission per year until staking nodes are launched for validators (6 months out).
- Remove 60% APY and replace with static 5%.
- Allow buy back for ABI with yields, inverse bonds & hold in treasury until backing price is achieved.
As previously passed in ABIP-13 we are ready to transition to mainnet. There are a few house keeping things that need to be done before this launched.
- Remove the APY and replace with static 5% rebasing.
We can no longer rely on the Olympus DAO rebasing since it is being moved down to roughly 7% per year. With v3 OHM release and range bound pricing, it would not make sense to rely on OHM increasing in market cap to allow emissions of ABI (which it was based on).
The transition will be to a static 5% per year for those who stake ABI as sABI or gABI. No token changes or app changes will be needed.
- Allow inverse bonds & Buy backs for ABI
Since ABI is currently trading below backing, the proposal is to allow buy back of ABI to bring closer to backing. For this yields will be used to buy back ABI and this ABI will be sent back to treasury. The current yields come from Balancer, CVX, MTA, GMX & Vesta.
As a second part to this also allow inverse bonds (which will take a couple of weeks to deploy at least). These bonds will allow anyone to bond back ABI and receive gOHM or ETH.
The proposal if passed aims to provide a stability to liquidity in the ABI pool and a methodology to more accurately represent the backing value of liquidity.
Buybacks and inverse bond ABI will sit in the treasury. We did some test buy backs you can see in the treasury contract. The DAO owns these and can decide in future what to do with these. They will not be counted as circulating. If we ever open up bonds again, these ABI will be used instead of minting new ones.
The reduction in APY will be performed by the policy team as previously. In this case the APY will drop to 5% in a 2 week period when / if passed.
The buy back for ABI via yields will be done at random days during the week during 12 - 1pm UTC. We are planning every Monday and Friday, however the team may alternate this as per market conditions and multi-sig availability.
Inverse bonds will be launched after testing to allow folks to bond back ABI for backing value. The backing value will be accurately calculated and displayed on our dashboard, for keen observers, they can look at the treasuries. Abachi acquired 48 ETH & 7 BTC recently and still holds 40gOHM. For reference, there is 161k ABI circulating with 50k of that currently in pool.