DIP-5 - Starting an Olympus Pro BOND program

Overview Olympus Pro is proposing a Partnership with DEUS Finance to pursue a bonding program, through which DEUS Finance can secure Protocol Owned Liquidity (POL). By launching bonds on Olympus Pro’s marketplace, DEUS Finance will allocate monthly $DEUS emissions to sell to community bonders at a dynamically priced ROI in exchange for principal assets ($DEI, $wFTM, $DEUS-$wFTM - to be voted on in this post). Through this Partnership, DEUS Finance and Olympus Pro believe we can reduce $DEUS token inflation, boost liquidity on key exchanges, generate additional revenue streams through trading fees,, and optimize $DEUS’s liquidity mining programs.

Context As currently constructed on Thu Apr 21, 2022, DEUS Finance’s liquidity mining program for $DEUS and $DEI has ~153.5M TVL locked in Beethoven-X and SpookySwap farms for $DEUS-$DEI, $DEUS-$wFTM, and $DEI-USDC liquidity. Stats below:

BEETS FARM (Two Gods) Current TVL- $13,752,675 Current APR - 84.52%

BEETS FARM (One God) Current TVL - $87,518,096.00 Current APR - 28.61%

SPOOKY DUES-wFTM Current TVL - $7,850,128.00 Current APR - 106.21%

SPOOKY USDC-DEI Current TVL - $44,431,000.00 Current APR - 28.23%

While $DEUS inflation is controlled by the buying/selling of $DEI, liquidity mining from these pools is creating ~28% annual token inflation. “Renting” liquidity with high emissions runs the risk of DEUS Finance funding mercenary capital who farms rewards to sell $DEUS and create downward pressure on token price. DEUS Finance is vulnerable to large liquidity exits and is not earning trading fees during times of high activity because they do not own this liquidity.

As a key step towards solving these challenges, Olympus Pro is proposing a 30-day pilot bonding program on Olympus Pro’s marketplace through which DEUS Finance will allocate $DEUS emissions in return for $wFTM, $DEUS-$wFTM, or $DEI provided by bonders on Fantom Network. $DEUS will be given to bonders, at a discount based on demand and a dynamic pricing calculation, in exchange for ERC-20 assets the DEUS Finance treasury looks to acquire. Through owning additional liquidity, DEUS Finance can reap benefits such as:

• Permanent liquidity/DAO control over liquidity
• Reduction in Token incentives on key pairs (inflation control)
• Trading fee accumulation
• Treasury accrues its own LP incentives
• Mitigation of mercenary capital taking advantage of liquidity mining program

Goals

• Increase the $DEUS liquidity owned by the DAO
• Establish deeper liquidity of key Pools ( SpookySwap, Beethoven-X - potentially others in the future)
• $DEUS Token inflation reduction (long-term)
• Consolidated liquidity strategy on key pools (long-term)
• Stability in token price (long-term)
• Liquidity mining cost reduction Rationale As mentioned above, a bonding program should mitigate the effects of mercenary LP’s taking advantage of liquidity incentives, reduce $DEUS inflation, give DEUS Finance control of its own liquidity, and generate additional revenue for the treasury. We seek to start the 30-day bonding program in May. Olympus Pro works with and has worked with leading FTM protocols such as SpiritSwap, SpookySwap, LiquidDriver, Scream and Tarot, and we are excited at the opportunity to partner with DEUS Finance.

Means $1M in $DEUS emissions over 30 days to support bonders and Olympus Pro’s 3.3% fee. The 3.3% fee is justified to support labor cost, contract development and deployment, onboarding and community engagement, and value provided to partners (POL ROI will far exceed fee).

Continuation and expansion of the bonding program after the 30-day period will be put to an additional, separate governance proposal and may affect other budget considerations (such as pulling from staking rewards from pools that are removed or disincentivized)