OIP-53: Execute DAO swap with Frax Finance

Summary

Execute a DAO swap with Frax Finance for $3m FXS at a 30-day time-weighted average price.

Motivation

Frax Finance needs no introduction to the Olympus community. Our partnership started back in May with FRAX bonds, and was further deepened by them joining our Olympus Pro pilot program as one of the first partners showing faith in our new product.

At the moment, the Olympus Treasury holds more than $48m in FRAX reserves and OHM-FRAX liquidity. We are already clearly aligned with the success of Frax and by executing a DAO swap for FXS we would have a larger say in the governance as well.

Proposal

Execute a DAO swap with Frax Finance for $3m FXS at a 30-day time-weighted average price. The 30-day TWAP is what Olympus uses for all its DAO swaps, so that we don’t seem opportunistic or trying to time it based on short-term price action. The reference date for the price would be the end of their Snapshot vote - Nov 30, 2021, 20:00 UTC (so 30-day TWAP from that point).

The intended usage of the FXS is to lock as veFXS to maximize participation in Frax's governance.

The community has already given the DAO permissions to pursue (but not execute) DAO swaps with Frax Finance, as per OIP-19.

Vote

For: Execute DAO swap

Against: Don't execute DAO swap

Forum post for additional discussion and context: https://forum.olympusdao.finance/d/506-oip-53-execute-dao-swap-with-frax-finance