OIP-37: Launch OHM-ETH Liquidity Bonds

Summary

We are in a period of strong demand for OHM, as evidenced both by price appreciation and the treasury’s rapid accumulation of reserve and liquidity assets. Given current market conditions, and looking to the future of OHM as a trading pair, the Policy team believes that it’s the perfect time to launch an OHM-ETH liquidity pool and bond, which will allow us to capture additional volume and fees.

Proposal

• Match $2.5M worth of DAO OHM with $2.5M worth of Treasury ETH ($5m total liquidity) for the initial LP position to bootstrap the pool. At current prices we have $7,255,000 of ETH in the Treasury. This wouldn't affect treasury RFV in any way. The alternative to this would be paying out OHM incentives to liquidity providers to launch the pool, which would just increase the cost to the protocol.

• Launch an OHM-ETH bond

• Target an initial $100m in liquidity accumulated over a minimum of 4 weeks. Depending on market conditions the Policy team would speed up or slow down this process, but the target would not be reached before 4 weeks.

• After that, maintain 20% of our total liquidity in the OHM-ETH pool

• The ETH portion of this pool would be in addition to the targets for ETH as a reserve asset in treasury, which has a separate allocation target, outlined by OIP-15 (and its amendments)

Additional context, explanation and discussion of this proposal can be found on the forum:

https://forum.olympusdao.finance/d/193-oip-37-launch-ohm-eth-liquidity-bonds

Vote

Option (1): Bootstrap OHM-ETH pool as proposed and launch OHM-ETH bond Option (2): Don't bootstrap OHM-ETH pool, but launch OHM-ETH bond. In this case we'd have to pay OHM incentives to LPs to launch the pool. Option (3): Do nothing