Autonolas

Background

Olas aims to grow a self-sustaining ecosystem of autonomous services. The scarcest resource in this ecosystem is software developers who, by contributing code, enable the composition of autonomous services.

Olas uses bonding as a primary way to capitalize the protocol (the other mechanism being protocol-owned services). This capital - called protocol-owned liquidity - and in particular its yield, can be used to eventually replace Olas emissions to developers and bonders.

Swaap Earn is a decentralized protocol that supercharges any DeFi strategy with market-making revenue streams. More details can be found in the announcement post.

This proposal aims at both developing the Swaap codebase on Olas and improving Olas protocol capitalization using Swaap Earn.

Proposal

Deploying Swaap’s code on Olas

Swaap plans to integrate part of its off-chain system with Olas, using it to deploy an agent. This agent will manage a crucial security feature—the pause function—which halts all deposits and withdrawals if it detects unusual activities.

Generating Yield for the Olas protocol

• Asset Transfer: Users will be able to deposit USDC/ETH into Swaap, receive an LP token (ERC 4626, an enriched version of ERC20 compatible with the existing bonding programs), and bridge it to the Ethereum mainnet via Wormhole to be deposited into the Olas treasury.

• Yield Collection: Yields and Swaap token rewards are automatically compiled in the vault. LP token holders - in this case the Olas DAO - can withdraw their initial deposits along with any accumulated yields or token rewards at any time.

• Allocation Selection: The allocation size is based on the success of the bonding program tranches. The 1st tranche is proposed to be $1 million. Subsequent tranches will be subject to additional DAO approval. Allocation options include 100% in the ETH vault, 100% in the USDC vault, or a 50/50 split between both.

Implications

This proposed partnership will have many benefits, including:

• Developing useful code on Olas
• Facilitate bonding through a new Path
• Earning substantial return on the protocol’s capital while minimizing risks
• Enable a use case for the future development of an Go extension for the Olas Stack which will be useful for any protocols written in Go to build agents on the Olas Stack.

If accepted, the proposal would mean that technical teams will move forward with the deployment of the Swaap Pause agent on the Olas Stack and the Olas Protocol will open a new bonding path on Swaap Earn vaults.

The below indicative roadmap will be followed:

• Specify the Swaap Pause agent to be deployed on the Olas Stack
• Launch the Bonding Path
• Develop and deploy the Pause agent

Conclusion

In conclusion, this proposal offers significant benefits for Olas by enhancing its ecosystem through the integration of Swaap Earn. By deploying the Swaap Pause agent, Olas will improve its useful code base - the scarcest resource in the ecosystem. Furthermore, opening a new bonding path on Swaap Earn will capitalize on lucrative yield opportunities, helping to sustain and grow Olas’ protocol-owned liquidity.

This strategic collaboration is designed to strengthen Olas’ financial foundation and foster long-term growth within its autonomous service ecosystem.

To vote, select one of the below options (expressing your sub-choice in comments): For: 100% ETH bonding path For: 50/50 ETH/USDC bonding path For: 100% USDC bonding path Abstain Against