Summary:
Proposal to add OHM/wstETH to the Balancer Gauge Controller. Pool deployed here. Gauge deployed here.
References/Useful links:
Link to:
• Website
• App
• Documentation
• Github
• Discord
Protocol Description:
Olympus is a protocol on the Ethereum blockchain with the goal of establishing OHM as a crypto-native reserve currency. It conducts autonomous and dynamic monetary policy, with market operations supported by the protocol-owned Olympus Treasury.
OHM serves a need in the market gap between fiat stablecoins and volatile crypto assets, providing relative stability and scalability underpinned by the protocol’s Range Bound Stability (“RBS”) system. RBS is the flagship system of Olympus’ autonomous monetary policy and has resulted in low volatility and stability for OHM since its launch.
Motivation:
Olympus currently has two large pools on Balancer, an OHM/ETH pool with $35m in TVL and an OHM/DAI pool with $31m in TVL. Both pools drive significant value to veBAL holders, both through fees earned as well as third parties pairing against OHM to route into these pools (e.g. BTRFLY, FDT, BOND). It is our intention to keep growing the number and size of OHM pools with new partners and we want to continue to host these pools on Balancer.
As part of a new product launch, Olympus DAO would like to request a gauge for the recently deployed OHM/wstETH pool.
The newly launched product is a novel liquidity solution that allows for effective scaling of select LSDs and stablecoins in an OHM pair. In a nutshell, this liquidity vault accepts third party deposits of LSDs or stablecoins and mints an equivalent amount of protocol-owned OHM against this as a counter asset. The OHM side of the LP does not accrue any rewards, so it cuts down the incentivization costs by half for partners.
The first liquidity vault will be launched in collaboration with Lido to create a OHM/wstETH pool.
Specifications:
- Governance:
- OlympusDAO is currently using snapshot for governance: Link to Snapshot
- DAO multisig 4 of 8: Holds DAO funds, executes governance proposals
- Policy multisig 3 of 5: Changes to policy (reward rate adjustments, turn on/off bond markets)
- Oracles:
- The core protocol uses the Chainlink OHM oracle to record the OHM moving average price on chain for RBS operations (see here).
- Other core protocol functions do not require oracles.
- The newly launched liquidity vault product uses the Chainlink (w)stETH oracle in order to prevent attack vectors in which deposits/withdrawals of the OHM/wstETH pool would result in highly skewed pool prices in comparison to the oracle price.
- Audits:
- Centralization vectors:
- No centralization vectors
- Market History & Value:
- The current OHM POL pools on Balancer, OHM/DAI and OHM/ETH, are some of the highest volume and fee driving pools for veBAL holders. On top, there are also partner pools for OHM/BTRFLY and OHM/BOND.
- We expect the new OHM/wstETH pool to significantly contribute as well due to the protocol fee on yield assets as well as arbing between the different OHM pools.
- If this new liquidity product proves to be successful, our intention is to launch other LSD/stablecoin OHM pools in the Balancer ecosystem that will continue to drive value to both the protocol and veBAL holders.
Please note: the OHM/wstETH pool has been deployed with the Olympus DAO multisig as the pool owner. Since this pool will be the first deployment for the new liquidity product described earlier, there might be a need - depending on the performance of the pool - to experiment with different fee setting to ensure optimal results for both the pool and the liquidity product.
Contracts:
Specification
#1
The DAO Multisig 0x10A19e7eE7d7F8a52822f6817de8ea18204F2e4f will initiate a transaction to the Authorizer 0xA331D84eC860Bf466b4CdCcFb4aC09a1B43F3aE6 calling grantRole with the following arguments:
role: 0xf49d7ffb5922642adc9f29cfb52b2214e81e0b0e54e9cd1e9f70439f0011f368
This corresponds with the role for calling add_gauge on the gaugeController as seen here.
account: 0x10A19e7eE7d7F8a52822f6817de8ea18204F2e4f
This allows the DAO Multisig to directly add gauges to the controller.
#2
The DAO Multisig 0x10A19e7eE7d7F8a52822f6817de8ea18204F2e4f will interact with the AuthorizerAdaptor at 0x8F42aDBbA1B16EaAE3BB5754915E0D06059aDd75 and call performAction with the GaugeController at 0xC128468b7Ce63eA702C1f104D55A2566b13D3ABD for the target(address) argument and using 0x3a04f900 followed by the gauge address 0xE879f17910E77c01952b97E4A098B0ED15B6295c and the corresponding gauge type for the data(bytes) argument.
data(bytes) : 0x3a04f900000000000000000000000000e879f17910e77c01952b97e4a098b0ed15b6295c0000000000000000000000000000000000000000000000000000000000000002
#3
The DAO Multisig 0x10A19e7eE7d7F8a52822f6817de8ea18204F2e4f will initiate a transaction to the Authorizer 0xA331D84eC860Bf466b4CdCcFb4aC09a1B43F3aE6 calling renounceRole with the following arguments:
role: 0xf49d7ffb5922642adc9f29cfb52b2214e81e0b0e54e9cd1e9f70439f0011f368
This corresponds with the role for calling add_gauge on the gaugeController as seen here.
account: 0x10A19e7eE7d7F8a52822f6817de8ea18204F2e4f
This removes the ability for the DAO Multisig to directly add gauges to the controller.