OIP-175: Olympus Q5 Launch Strategy

Summary:

Olympus has a vested interest in the success of Berachain, being both a pre-pre investor and having aligned communities with similar interest and direction. To further this engagement, we propose the following plan to solidify OHM as powerful infrastructure in the Bera ecosystem.

Background:

On March 18, 2022, OIP-87-Berachain Investment + Strategic Partnership requested the OlympusDAO community to approve an investment and strategic partnership in Berachain, a project led by DevBear and Smokey. The OIP was approved by snapshot on March 25th and seed funds transferred in three installments from 4/21/2022, 5/9/2022 and 6/2/2022.

While this investment secures Olympus an interest in the BERA supply, we recommend putting that supply to work as a catalyst for more meaningful and long term engagement with the chain.

Proposal:

BERA Vesting and Staking: During the RFC process, there have been deep conversations with both Infrared and THJ on the inner mechanics of their validator stack and their respective rewards cutting boards. Furthermore, during this time, there were material changes made by the Berachain Foundation which fundamentally shifted how validator rewards worked, reverting previous diligence and requiring rescoping.

On a personal note, working with both of these groups has been phenomenal and they have been incredibly professional, taking time to answer our questions and keep us in the loop as the launch landscape evolved.

With this in mind, we have arrived at the following splits that we recommend to the community for execution:

• 85% of our interest will be committed to Infrared and turned into their iBERA LST. iBERA will earn block fees, MEV, priority fees and boost from BGT delegation, all of which will auto compound back into iBERA.
• 15% of our interest will be committed to The Honey Jar (THJ) and turned into their fatBERA LST. Under the hood, the BERA in this LST will be split between the THJ Validator and the Beradrome/APDAO Validator.

We believe this ratio of stake will drive the maximal value to the Olympus Ecosystem and capitalize on first mover advantage of the early network rewards. It is worth noting that, at launch, there is no way to unstake BERA from a validator. This feature will be enabled by the foundation at a future time. As such, it is imperative that we structure the ratio correctly since it will be immutable for the foreseeable future.

In order to stay agile as these markets emerge, we recommend using Olympus Governance to steer ratios and amounts of the LST’s once unstaking has been enabled and weight changes are possible. Specifically, depending on performance, we can evaluate once we have data to consider. This includes, but is not limited to, introducing landBERA (BeraLands LST).

Furthermore, if any party is unable to accept stake from the custodians for whatever reason, we reserve the right to re-allocate proportions to the other option.

This was a difficult decision but we feel strongly that this composition is the right one for our stakeholders and community.

Lastly, a reminder that all of our vesting supply backing the creation of these LST’s is beholding to the same vesting terms set by the foundation. Specifically:

• Staked tokens remain locked for the same duration as the vesting terms specified by the Berachain Foundation.
• Only the yield portion can be removed from this lock.
• Staked tokens cannot be moved from the wallet as long as they are bound by vesting.

Liquid earnings from these efforts will flow back to the Olympus Treasury and be used to fund YRF, or whatever active strategy has been defined by governance.

Infrastructure:

• Deploy a full cross chain Olympus stack including, but not limited to:
• A Multisig on Berachain
• A Kernel deployed allowing the activation of the other core modules and policies (Bridge, Minter, Treasury, etc.)
• Deploy Olympus TRSRY (Treasury) Module on Berachain
• Deploy an Olympus Bridge on Berachain

This infrastructure will permit the flow of OHM to and from Berachain as well as the required contracts to establish more advanced structures within the ecosystem. The intent should be to utilize Berachain as our primary hOHM away from mainnet, with efforts to expand OHM functionality, utility and automation to debut here; cross-chain governance efforts for example, from both voting and contract management standpoints.

Liquidity:

Our goal at launch will be to establish OHM/Stable POL on Kodiak in a range from LB to Infinity. We recommend this pool be seeded with 250,000 OHM and enough stables in LP to hit the 12 - Infinity Range. This represents 25% of current liquidity, and should provide an adequate baseline of sticky liquidity for activity on the chain.

Past launch, we should make efforts to secure Proof-of-Liquidity Reward Vaults for (in order of priority):

hOHM-BERA OHM-hOHM hOHM-HONEY OHM-BERA OHM-HONEY

Once one or more of these gauges are secured, BGT voting power should be utilized to push emissions onto these vaults. Our goal is to have POL at least matched 1:1, ideally outnumbered >2:1 by user-owned BEX liquidity.

BGT / Governance:

Olympus will not directly participate in Berachain Governance via BGT but instead, align with partners who will be assembling BGT (Specifically Infrared, THJ, Etc.) and feeding that value back into their LST. If rewards are collected, they can be used to bribe existing liquidity markets (Like OHM/HONEY) but largely, we will not be tuned to accumulate BGT power but rather staying liquid and partnering with blue chip partners who will.

Post Launch Targets:

Though not ready at launch, the following goals will be pursued going forward with this base infrastructure completed.

• Launch native Funny Ooga Money Coolers (FOMC) aka Cooler V2
• Launch native Liquid Coolers, supporting borrows using OHM-HONEY liquidity positions
• Launch native Convertible Deposits and build out a liquid OHM options-chain using tokenized conversion terms
• As part of our diligence process, we found synergy in a potential Olympus THJ Product that we plan to explore more thoroughly and hopefully launch.

Genesis Partnerships (In No Order):

THJ

• Stake with THJ Validator via fatBERA LST
• Support THJ with HENLO (Future Discussions on Liquidity, Etc.)
• Continue to explore strategic engagements
• Core Proof of Liquidity Partner

Infrared

• Stake with Infrared Validator via iBERA LST
• Core Proof of Liquidity Partner

Origami

• Support and coordinate on bringing it hOHM
• Peapod Finance
• Support and coordinate on Berabased Pods

Kodiak

• Core Concentrated Liquidity Partner/DEX
• Liquid Cooler LP infrastructure

Beradrome

• Broker partnership (New Veal) with Beradrome to deposit LP and enable it for incentives.
• Define the amount of OHM Based Bribes Olympus will contribute to our LP
• Beradrome will match with an oBERO NFT burned into the MS with voting power for emissions.

BeraLand

• Coordinate Olympus socially through BeraLand
• Future exploration into landBERA when ready

Dolomite

• Integrate Cooler V2 for subsidized-interest borrows for OHM collateral users

Bend

• Seek OHM collateral listing + integrate Cooler V2 for subsidized-interest borrows for OHM collateral users

Gummi

• [Redacted]

Motivation:

At launch, contingent with BOYCO TVL, we expect Berachain to see a substantial inflow of capital, which creates an opportunity for OHM to extend its value layer into this nascent, exciting new market.

This will be a shorter OIP since time of the essence with Q5 fast approaching and which how much time was spent on diligence. Snapshot vote will be posted live early next week.