OIP-145: Bridge Loans Pre-Cooler

Note: this is a time sensitive proposal. The governance timeline is compressed accordingly.

Summary

Create a short term loan facility on Vendor V1 (on mainnet) with enough capacity to accommodate current borrowers on Rari. This gives Ohmie borrowers the opportunity to take a bridge loan between now and Cooler deployment, with better terms than what's available now. It also keeps costs in the Olympus ecosystem, instead of fees leaking to external parties.

Previous discussions related to Vendor Finance can be found here: https://forum.olympusdao.finance/d/2047-tap-21-pilot-clearing-house-deposits https://forum.olympusdao.finance/d/3337-tap-26-expansion-of-vendor-finance-partnership/

Motivation

Soft landing: It's clear that there is excess demand for borrowing that the Treasury can help fill while Cooler is being implemented. Rari borrowers can rehypothecate into a "soft landing" bridge loan until Cooler arrives. We propose to deposit enough DAI into the market to be able to service all gOHM collateral in Rari at a 50% LTV.

Capture revenue: Ohmies are paying high interest on their gOHM-collateralized loans, which largely exits the ecosystem. This was a main motivator for Cooler, but we can address the value leak now with a short term Vendor market. This allows the Olympus Treasury to keep fees in the ecosystem, bringing value back to OHM holders.

Definitive backing: Vendor markets have specific closure dates, with repayment required prior to that date. The vast majority of current gOHM-collateralized loans don't have a definite payback date, including those written by Rari. It's not certain when the Treasury could expect that money back. This makes it difficult to consider those assets as backing for Cooler loans. Using a Vendor market instead makes it possible to take those assets into account for the Cooler-mandated backing calculation.

Stay the course on consolidation: one alternative is to put FRAX into Fraxlend. This backtracks on the current Treasury mandate to prepare for Cooler by consolidating into DAI. Vendor accepts DAI markets and allows the DAO to maintain course on asset consolidation.

Proposed terms

• 1,000,000 DAI deposited into Vendor (bringing total DAI deposited in Vendor V1 to 1.5M)
• 30 September 2023 expiry date
• 3.5% annualized rate
• 1,415 DAI lent per gOHM collateralized (~50% LTV)