XIP007: Fight or Flight

This is a proposal to decide if Exodia’s members are willing to start the transition phase to our new model, moving away from the traditional OHM fork. Here is a summary of the changes:

Proposed changes to the model

Soft peg Exodia to its backing price

The treasury will act as a market maker to soft peg the market price to the treasury’s backing price using bonds, reverse bonds, and buybacks Expected results: • Reduced volatility on the downside and the upside. • EXOD will start to track the performance of the underlying assets like an index which can be attractive to a lot of investors. • The treasury will make profits by stabilizing the price which will be returned to the stakers via dividends.

The end of rebase APY

The treasury will now only mint and burn EXOD proportionally to the funds added to the treasury. This means that if we make 100$ from farming, the treasury will mint 100$ worth of EXOD and will distribute it to the stakers through dividends. Expected results: • Reduced sell pressure and APY • EXOD gets printed according to historical growth of treasury and not projected • Improve sustainability

Deploying 100% of the treasury

We will deploy 100% of the treasury into yield bearing strategies. Expected results: • Generate dividends • Adds more risk to the treasury • A PeckShield audit costing US$30k

Withdraw liquidity from the Monolith Pool

We will switch our liquidity to a new pool 80EXOD-20DAI on Beethoven. Expected results: • Reduce liquidity as it is currently 60% our market cap • Helps with buybacks • Reduce exposure to other tokens • Free capital to get more yields

Generic outcomes of the proposal if implemented:

• These changes would transform the current system into a sustainable one • Brings predictability and trust to EXOD and its price action • Exodia becomes closer to a farming as a service protocol

A call to action

These changes will require a significant amount of work to develop, require funds to audit, as well as significant help from the community for Exodia to obtain its blue chip status. Exodia cannot become a reserve currency if only a few people want to fight for it and the current model is currently unsustainable. Therefore, the community must decide if they will fight for Exodia and its future by contributing and implementing the changes or flight with the treasury.

The flight option is to redistribute the treasury and end the project. We are ready to build Exodia, but if users are not interested in using the product, there is no point in building it. For the treasury redistribution we will pull liquidity and burn tokens owned by the DAO/treasury and will redistribute the treasury to all EXOD holders at around 65$/EXOD.

Options:

Fight: Implement the changes in the proposal Flight: Burn EXOD in LP and in the DAO wallet and redistribute the treasury at backing price (currently around 65$). No hard feelings