PR with Payload
Summary:
Proposal to add OHM/LUSD 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 multiple large pools on Balancer, most notably the OHM/ETH and OHM/DAI pools on Mainnet and OHM/ETH and OHM/USDC pools on Arbitrum. These 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, PAL). 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.
A few months ago, Olympus DAO launched a new product launch, and deployed a OHM/wstETH pool on Balancer in cooperation with Lido. 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 has shown promising results and so this gauge request is for the second launch of the product, an OHM/LUSD pool in cooperation with Liquity.
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 oracles in order to prevent attack vectors in which deposits/withdrawals of a 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. Finally, the OHM/wstETH has been live for a few months and contributes to the protocol due to the fee on yield assets, incentives for the pool, and additional arbing between the different OHM pools.
Please note: the OHM/LUSD pool has been deployed with the Olympus DAO multisig as the pool owner. Since this pool will be one of the first deployments 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:
Link to pool
Link to gauge.
Specification:
The Balancer Maxi LM Multisig eth:0xc38c5f97B34E175FFd35407fc91a937300E33860 will interact with the GaugeAdderv4 at 0x5DbAd78818D4c8958EfF2d5b95b28385A22113Cd and call the addGauge function with the following arguments:
gauge(address): 0xd8191A3496a1520c2B5C81D04B26F8556Fc62d7b which corresponds to the uncapped gauge for this pool
gaugeType(string): Ethereum