Vote 4: Olympus Pro

PROPOSAL SUMMARY

If executed, this proposal will:

Allocate $250k worth of Gro DAO Tokens (GRO) for an Olympus Pro bond on GRO/PWRD Uniswap v2 LP tokens to deepen protocol owned liquidity.

BACKGROUND

Since the launch of Gro DAO token (GRO), it has accumulated $20M liquidity ($34M total pool liquidity) across Uniswap v2 and Balancer in GRO/USDC, GRO/GVT, GRO/WETH, and GRO/PWRD pairs. The daily trading volume is now at $3-6M across these pools.

The community has provided feedback that the current liquidity level could be deepened to ensure price stability. This would allow larger transactions without causing unnecessary jump in token prices. At the same time, deeper liquidity would also improve user experience as the slippage or price impact would become smaller for each trade.

OlympusDAO is one of Gro’s first PWRD treasury users and this proposal is another step to deepen the collaboration and relationship between the two DAOs/protocols.

PROPOSAL TO INITIATE OLYMPUS PRO BOND WITH $250K GRO

Gro proposes that the DAO allocates $250K Gro DAO tokens (GRO) to initiate an Olympus Pro bond in its Cohort 3 launch on Friday 19th November. If this vote passes, the DAO treasury would offer GRO in exchange for protocol-owned GRO/PWRD liquidity.

• Olympus Pro is a well-received liquidity management program with 16 partner protocols on Ethereum and Fantom since its September launch.
• 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.
• $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 7- or 14-day vesting period, it would have limited impact to GRO holders.
• 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 $250K 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.

HOW WAS THIS PROPOSAL DISCUSSED?

This proposal was put together by early contributors behind the Gro protocol. It has been shared in the Gro governance forum: https://community.gro.xyz/t/snapshot-vote-4-olympus-pro/174

REFERENCES

Olympus Pro - Introduction article https://olympusdao.medium.com/introducing-olympus-pro-d8db3052fca5

Olympus Pro - Documentation https://docs.olympusdao.finance/pro