IQIP-8: Increasing Long Term Liquidity for the IQ Token on Arbitrum with Olympus Pro

Background

Ethereum L2 scaling solutions like Arbitrum are rapidly growing as Ethereum L1 gas costs continue to rise. Several leading DeFi protocols including AAVE, Sushiswap, and Curve are building on Arbitrum.

Arbitrum is EVM compatible and uses optimistic rollups for greater speed, scalability, and significantly lower transaction costs while still benefiting from Ethereum's excellent layer 1 security.

For the IQ token to continue to grow as a DeFi 2.0 token it's imperative for the IQ token to gain liquidity on leading Ethereum L2 scaling solutions like Arbitrum.

The IQ token has already gained over $500,000 in long term liquidity on Ethereum through selling IQ Bonds on Olympus Pro, the leading DeFi 2.0 solution for building long-term liquidity and was developed by Olympus DAO.

This proposal involves launching IQ Bonds on Olympus Pro so that the IQ token can develop long term IQ-FRAX liquidity on Arbitrum.

How it Works

If this proposal passes to integrate Olympus Pro, IQ holders will be able to get IQ at a discount through getting IQ Bonds on Arbitrum. To get IQ Bonds, IQ holders will trade FRAX on Arbitrum for IQ Bonds on Arbitrum. In return for giving a discounted price of IQ, the IQ Bonds will distribute IQ to bondholders over a 7 day period. To provide the IQ tokens to support the IQ Bond sales this proposal would issue 1m IQ/day.

The IQ protocol will then use a majority of the FRAX acquired from the IQ Bond sales on Arbitrum to get IQ and provide long term IQ-FRAX liquidity on Arbitrum. The remaining FRAX will accumulate in the IQ treasury.

For more information on how Olympus Pro works in general check out their docs+specs on their site.

Benefits

This proposal, if passed, would give IQ holders the opportunity to get IQ at a discount without the risk of impermanent loss.

It would also allow the IQ protocol to acquire IQ-FRAX liquidity on Arbitrum liquidity ensuring that the IQ token can rapidly expand on Arbitrum.

The IQ protocol will also earn trading fees from supplying IQ-FRAX liquidity on Arbitrum.

Through the co-marketing of IQ Bonds with Olympus DAO the IQ token will also be seen by the Olympus community of Ohmies which includes over 10,000 DeFi users who’ve turned OHM into a $3 billion plus dollar protocol.

Vote Options

YES, Initiate Olympus Pro on Arbitrum with 1m IQ/day emissions.

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