OlympusDAO Partnership

Authors

Frax Finance Team

Summary

Co-incentivize FRAX-OHM Uni pool with OlympusDAO and purchase OHM bonds with FRAX

Background

OlympusDAO manages OHM, a floating algorithmic currency which has gained traction as a non-pegged stablecoin. OlympusDAO currently uses DAI as their reserve asset, and are open to partnering with Frax to include FRAX as a reserve asset in an incentivized FRAX-OHM pool. The OlympusDAO community currently has an active vote detailing their proposal here.

Purpose

The purpose of the OlympusDAO partnership is to foster cooperation between both communities as algorithmic stablecoins grow into defi as a whole.

The partnership would go as follows

FRAX-OHM pair

Incentivize the FRAX-OHM pair on Uniswap with 2000 FXS/day.

OHM Bond

Mint 500k FRAX through an AMO controller to be put in a $1m FRAX-OHM LP token bond, with the other half coming from OlympusDAO.

If adopted, this proposal seeks to:

1. Incentivize the FRAX-OHM pair with 2000 FXS/day
2. Purchase half of a $1m FRAX-OHM LP bond with OlympusDAO by minting 500k FRAX through an AMO controller

This benefits Frax as a whole by:

• Establishing a partnership with OlympusDAO