Vote 008: Increasing Olympus Pro bond allocation

For information and background, or to get involved with the conversation, please go to the Community post here: https://community.gro.xyz/t/vote-008-increasing-olympus-pro-bond-allocation/204

PROPOSAL TO INCREASE BOND ALLOCATION TO $500K GRO/month

Gro proposes that the DAO increases allocation from $250K/month to $500K/month for the GRO/PWRD Olympus Pro bond. This would effectively more than double the maximum bond size from 1,154 GRO to 2,620 GRO.

• Olympus Pro is a well-received liquidity management program with 25 partner protocols on Ethereum, Fantom, and Avalanche since its September launch.
• While the gas cost to bond would remain the same to the user, a larger maximum bond size would mean the gas cost would be a lower proportion of capital used for bonding.
• $500K/month would be in line with fellow Cohort 3 participants’ monthly allocation of $448K, $520K, and $550K. There is one protocol that allocated $1.2M/month to the program which would be advised to adjust downward.
• An additional $250K GRO represents a very small increase in circulating supply (<1%) and a even smaller portion of GRO allocated to the treasury (<0.3%); in the event that all bondholders sell their GRO tokens obtained in this program after the 14-day vesting period, it would have limited impact to GRO holders.

More details about the GRO/PWRD Olympus Pro bond (same as what was presented in Vote 4):

• GRO/PWRD is a new Uniswap v2 pool where there are no liquidity mining rewards offered at the moment; this provides a clean read of the bond’s performance in drawing in additional liquidity in the absence of GRO incentives.
• LP tokens obtained through this program will remain in the treasury to generate trading fee income while providing liquidity to the market.
• Bond price will be determined by market demand; higher demand for the bonds will increase the bond price and vice versa.
• The program duration is flexible; if the result is unfavourable (e.g., limited market appetite), Gro DAO can sunset the program by not renewing the allocation to the bond’s custom treasury contract.
• OlympusDAO will get 3.3% of total bonded value in Gro DAO tokens in return for providing the bond instruments and marketplace; as OlympusDAO has “skin in the game” through holding our governance tokens, it will have higher incentives to collaborate with us in growing Gro.

VOTING PROCESS

This vote was discussed in the Gro community forum for 14 days, together with discussions on Discord. The vote will run live for a further 7 days.

Yes: Support the proposal and grant the proposed increase Olympus Pro allocation to $500K/month

No: Do not support the proposal and do not grant the proposed increase Olympus Pro allocation to $500K/month