RFC: Implement AI for OGV Buybacks Using Autonolas (OLAS)?

Summary:

This proposal aims to gauge interest in building an Autonolas agent to make OGV buybacks more impactful. Instead of bi-weekly buybacks, an AI agent could be used to dynamically buy back OGV based on market conditions. There are two main reasons to pursue this:

1. The Origin DeFi DAO could earn substantial OLAS rewards.
2. Autonolas could increase the effectiveness of OGV buybacks, leading to stronger performance.

Background:

Autonolas introduced autonomous agents to blockchain, allowing DAOs to decentralize off-chain processes. With integrations like GPT-4, Autonolas enables the use of artificial intelligence and can intelligently execute transactions based on defined parameters.

Autonolas has also introduced a unique incentive mechanism called the (Code, Capital) flywheel. This mechanism allows python developers to create protocol-owned services on multiple networks, including Ethereum. Service agents that prove useful are rewarded with the OLAS token, which has appreciated more than 1,000% in the past 6 months.

Motivation:

1. The Origin DeFi DAO could earn substantial OLAS rewards.

Autonolas distributed over $2 million in OLAS to developers during Epoch 7 (each Epoch lasts 2 months). These rewards were split between just 17 contributing developers, and I believe that Origin could be a top contender for OLAS incentives. If the Origin DeFi DAO were to earn the average reward during the Epoch 7, this would result in $117,000 in new revenue for the DAO.

Postmint’s Root Deployer earned some of the most OLAS incentives in Epoch 5, which you can read about here: https://twitter.com/postmint_xyz. To view a list of other projects that received OLAS incentives, you can read through some qualifiers here: https://twitter.com/autonolas/status/1703797959488659863?s=20. Based on Origin DeFi’s high TVL, reputable team, and novel use case, there is potential for the DAO to earn significant OLAS rewards.

Earning OLAS could accelerate the pace of OGV buybacks and help us accumulate DAO-owned flywheel tokens. If this proposal passes and an agent is created, there will be a separate proposal to decide how the DAO will utilize its OLAS incentives.

2. Autonolas could make OGV Buybacks more impactful.

Our current buyback process does not take market conditions or liquidity into account. If the DAO used an AI service agent to optimize buybacks, each buyback could become more impactful.

Furthermore, an Autonolas agent could account for the amount of fees earned by the Origin DeFi DAO and predict how much buying power is needed to impact OGV price. This means that OGV buybacks could be dynamic – the agent may deem it’s most impactful for the DAO to accrue more buying power over longer periods of time, or do more frequent buybacks depending on which choice leads to the best outcome.

Details/Scope:

Given sufficient interest, the Origin team should allocate up to $10,000 in OGV from its treasury to hire an experienced Autonolas developer to create an AI agent for OGV buybacks.

The AI-service agent should be able to receive inputs such as depth of liquidity and historical price action. With this information, the agent should conduct OGV buybacks under favorable conditions, enabling buybacks to maximize their impact on OGV price.

The Autonolas agent should be designed to scale to other projects. This will help the Origin DeFi DAO earn OLAS rewards, as the agent could be utilized for other protocols that conduct token buybacks.

Next Steps:

Given this proposal receives sufficient “yes” votes, the Origin team should create an application process to source a developer from the Autonolas community. The Origin DeFi DAO should be prepared to spend up to $10,000 in OGV to create the service agent.

About Autonolas:

Autonolas is an ecosystem of autonomous services, created by developers to decentralize off-chain processes via agent services. Agents can plug into off-chain data, allowing protocols to harness machine learning algorithms like GPT-4. Notable protocols that have leveraged Autonolas include Balancer and CoW Swap.

Resources:

SMPKit Docs: https://docs.autonolas.network/product/smpkit/

Code, Capital Flywheel: https://www.autonolas.network/blog/code-capital-attracting-code-via-developer-rewards

Autonolas Twitter Thread: https://twitter.com/autonolas/status/1703797959488659863?s=20

Autonolas blog: https://www.autonolas.network/learn#what-is-autonolas