RIP-5: Bootstrap RSC/ETH Liquidity with Permissionless Olympus Pro

SUMMARY: Currently, there is low liquidity to purchase or sell ResearchCoin (RSC) on a decentralized exchange (DEX). This provides a barrier of usability for RSC. To incentivize people to provide liquidity for RSC, we propose to leverage the new Permissionless Olympus Pro (OIP-104: Deploy Permissionless Olympus Pro as Bond Protocol) recently rebranded as Bond Protocol. This will help bootstrap protocol owned liquidity for RSC and allow for participants of the ResearchHub platform to convert assets into/out of RSC with significantly reduced slippage in price.

RSC Contract Address: 0xD101dCC414F310268c37eEb4cD376CcFA507F571

MOTIVATION: Currently, there is limited liquidity to buy or sell RSC on Uniswap. This results in very shallow liquidity and thus high slippage. Users can provide liquidity for RSC on their own; however, this exposes them to risks such as impermanent loss. Additionally, the protocol runs the risk of temporary liquidity whereby those providing liquidity can remove this liquidity at their own discretion. Permissionless Olympus Pro will allow anyone to take their RSC/ETH LP and bond it into the Community Treasury in return for discounted RSC. This will effectively allow the Community Treasury to own its own liquidity ensuring that liquidity remains no matter the market conditions.

PROPOSAL: We propose to leverage the Permissionless Olympus Pro bonding system to bootstrap liquidity for the Uniswap V2 RSC/ETH LP.

Pros:

1. Helps provide permanent floor liquidity (implication: swap RSC/ETH with less price impact)
2. Removes risk of transient liquidity (implication: liquidity will never be removed from RSC/ETH pool)
3. Removes risk of impermanent loss for LPs (implication: less downside price risk for the liquidity provider)
4. Provides opportunity for community to get RSC at a discount (implication: if you bond RSC/ETH, you will earn RSC at a discount)

Cons:

1. Olympus Pro Fee: 3.3% (subject to change with rebrand to Bond Protocol)

Additionally, there may be consideration in adding an ETH bond whereby users can bond standalone ETH in return for discounted RSC. This will be secondary to the RSC/ETH LP bond, but would help the ResearchHub Community Treasury acquire non-RSC assets (i.e. ETH).

ACTION: Contingent upon the successful auditing and launch of the appropriate contracts from OlympusDAO/Bond Protocol, we will begin by opening up an RSC/ETH LP (Uniswap V2) Bond. We will begin with setting a maximum bond at 0.05% of RSC supply (i.e. 500,000 RSC, which remains inline with the RIP-2 maximum allocation for liquidity of 25% of the Q2 2022 budget) and a vesting period of 7 days. We will work closely with the Bond Protocol team to fine tune any parameters for the bonding.

Learn more about Olympus Pro: https://docs.olympusdao.finance/pro/#benefits-of-olympus-pro-for-protocols