OIP-189: Olympus Strategic Deposits into Peapods Finance

Summary:

This RFC recommends Olympus strategically deploy liquidity into Peapods Finance across two Pods:

• $500,000 USDC into the pHOHMLONG Pod
• 4,800 OHM into the pHOHM Pod

These allocations target lending markets where utilization is currently at or near 100%, driving exceptionally high supply APRs. By deploying at size just above the kink point (92%), Olympus can capture strong yields, while also stabilizing funding markets for OHM-related strategies.

Motivation:

Attractive Yields: The pHOHMLONG Pod (USDC) is presently yielding 71.8% net supply APR at 96% utilization. Even after a $500k deployment, APR remains 70.9%.

pHOHM Pod (OHM) is at 55.2% net supply APR at 100% utilization. Adding 4,800 OHM supply lowers utilization to 92.25%, yielding 61.9% net supply APR.

Strategic Alignment:

Lending is collateralized by hOHM, which Olympus recognizes as pristine collateral equivalent to OHM. Deposits support OHM’s broader liquidity environment by relieving extreme utilization pressure.

Further engagement and evolution of our partnership with Peapods Finance. Their protocol receives continuous net revenue denominated in OHM and we have been working diligently with them to illustrate the value of Cooler Loans to draw liquidity and use of OHM to underwrite a treasuries balance sheet. Our engagement into the OHM side of their protocol supports those conversations as we align with their growing and cash positive business.

Risk-Aware Targeting:

Deployments are sized to keep utilization just above the kink rate (92%), balancing yield capture with market stability.

Hypernative monitoring will provide programmatic oversight of daily utilization, APRs, and risk metrics

Specification:

There are the following specifications for deployment:

Deposits:

• $500,000 USDC into the pHOHMLONG Pod.
• 4,800 OHM into the pHOHM Pod.

Monitoring:

Hypernative agent will check utilization and socialize the ratio of lend to borrow and APR daily.

Olympus Treasury will adjust positions if markets move materially below kink (to avoid inefficient capital) or above kink (to prevent runaway rates). As a safety measure, for launch we will place Not to Exceed caps of $1.5m in stables and 14,400 OHM on each market (3x the launch amounts). This can be adjusted with further governance.

Return Projections (linear, assuming kink management): pHOHMLONG Pod (USDC): APR 70–72% → 3-month return ≈ 17% | 6-month return ≈ 35%.

pHOHM Pod (OHM): APR 61–62% → 3-month return ≈ 15% | 6-month return ≈ 31%.

Rationale:

Current market conditions show sustained demand for hOHM leverage, both against OHM and USDC collaterals

Olympus can capture increased yields, socialized to all holders via backing, while reinforcing OHM’s utility and liquidity profile.

The requested deployments are modest relative to Treasury size, but impactful in supporting ecosystem health.

Snapshot note: full details including supporting models can be found in the linked forum post.