Operation Thecosomata (FINAL) [RIP-1]

For more information, go to : https://commonwealth.im/redacted-cartel/discussion/3309-operation-thecosomata-final-rip1

Summary

A bilateral agreement between REDACTED CARTEL & Olympus DAO to increase liquidity of the OHM:BTRFLY liquidity pair on Sushiswap. Our initial seed of our Sushiswap OHM:BTRFLY LP pool did not account for the speed at which we are currently growing. We would like to take an interest-free OHM loan from Olympus secured by our sOHM to pair with minted BTRFLY (by redirecting current LP bond emissions) to further bootstrap our LP pool. This would allow us to grow our LP position at around twice the speed.

Initial Discussion

For some background into the initial discussion, please view our Request For Feedback Paper, which covers RIP-1 & RCA-1. RIP-1 is the proposal to use Olympus’s debt facility to borrow OHM on our sOHM, using BTRFLY minted directly from the treasury. It operates on the assumption that RCA-1 will pass.

RFF : https://commonwealth.im/redacted-cartel/discussion/3229-rff-thecosomata-treaty

Changes Since The RFF

Thecosomata.sol will be designed to inject OHM gained as bond revenue directly into LP as well as staking said bond revenue and borrowing against it. The Olympus Core Team have stated they would like to receive fees, as a charge for us using their lending service, these will be implemented much like current “tithe” fees paid to Olympus on LP bonds. However, fees will not be levied on REDACTED initially - with the fee being set to zero. Provisions will be made in Thecosomata.sol to differentiate LP funded using borrowing and pre-held funds.

Technical Aspects of Thecosomata

Thecosomata will receive BTRFLY every epoch via the staking distributor, which is being used as a tool by the DAO to manage the distribution of BTRFLY to automated LP programmes. However, Thecosomata will be directly interacting with the REDACTED treasury to withdraw sOHM & OHM, for the purpose of sourcing capital to front collateral and liquidity.

The internal policy team will be managing the “reward rate” given to Thecosomata, alongside the staking rewards given to (w)xBTRFLY holders.

Actions

For - Allow Thecosomata.sol [to use REDACTED’s sOHM as collateral to borrow OHM from Olympus and to receive minted BTRFLY - to add LP]

Against - Do nothing

This is an ordinary proposal requiring 50% of participating capital in favour of the proposal - with a 2.5% quorum.