Olympus DAO

Summary Umami Finance is asking for OlympusDAO’s support for a proposed partnership to accelerate gOHM liquidity on the Arbitrum network and establish OHM as the dominant reserve currency for Arbitrum’s growing ecosystem.

Umami Finance is an Arbitrum-native protocol that provides a suite of infrastructure for scaling liquidity on Arbitrum, including wholly-owned treasury assets, market-making LP deployments, and affiliated DeFi projects.

You can read more about what we are trying to build here.

Motivation Umami Finance seeks to support the focus of Olympus being the core reserve currency of DeFi by attracting additional liquidity and adoption on the Arbitrum chain. $UMAMI is not another reserve currency, nor is it fighting for liquidity or market share with Olympus. Where Olympus seeks risk-free value to back its treasury, Umami Finance takes a market-making approach to its treasury strategy, in addition to supporting protocols and infrastructure that do not currently exist on Arbitrum.

Arbitrum is an Optimistic rollup built on the security and decentralization of the Ethereum network. It has attracted more than $2.5 billion in TVL in a short few months since launch. The Arbitrum network is poised to see a dramatic uptick in TVL and usage as it rolls out its planned Nitro upgrade, which will lower its gas fees even further and position it as a leader among L2 scaling networks for Ethereum.

You can read more about Arbitrum here.

By bonding gOHM and gOHM-paired LPs, Umami is well positioned to lock gOHM liquidity brought to Arbitrum, ensuring deep and lasting OHM liquidity on the network. Umami can also accelerate migration of gOHM liquidity to Arbitrum through its bond issuances and its partnerships with interoperability protocols.

What Umami Needs From OHMies The faster OlympusDAO can help Umami scale cross-liquidity between UMAMI and gOHM, the faster the Umami team can help establish gOHM liquidity on Arbitrum. The first step for an OlympusDAO and Umami Finance partnership would involve establishing a large UMAMI-gOHM trading pool on an Arbitrum exchange.

Umami will take $1 million equivalent of UMAMI tokens from its treasury and provide that to the OHM treasury. In turn, OHM would need to devote $1 million equivalent in gOHM to pair with the UMAMI to build an UMAMI-gOHM LP on Arbitrum.

Umami’s Value Add Umami is preparing to offer a variety of gOHM-paired LP bonds that it will utilize to support OHM’s growth on Arbitrum.

Umami will commit to keeping >25% of its treasury composed of gOHM and gOHM pairs. It will build liquidity pairs to support gOHM trading liquidity across multiple assets, including gOHM-ETH.

Umami will provide $1 million in UMAMI tokens to OlympusDAO for it to use to build a gOHM-UMAMI trading pool on SushiSwap. The OlympusDAO treasury will hold the SLP tokens from this pool, giving it upside from exchange fees and UMAMI token appreciation.

Umami will swap its current primary UMAMI-MIM LP for UMAMI-gOHM once gOHM-ETH has $20M in liquidity on Arbitrum. The MIM in the UMAMI-MIM LP at the time of writing is worth approximately $1.5M. To assist in reaching that target, Umami will adjust its BCVs to make gOHM-ETH its second highest bonding priority after the UMAMI token LP itself. Umami will achieve this swap by market buying gOHM using the route MIM → ETH on Arbitrum and then executing an OTC ETH → gOHM swap with OlympusDAO.

Through its relationship with Arbi’s Finance, Umami is developing and launching other DeFi protocols on Arbitrum to generate new use cases for gOHM on the network and help attract more liquidity to Arbitrum. When Umami rolls out its collateralized lending protocol by January, it will position gOHM as the protocol’s primary collateral asset.

Vote:

For: Engage in partnership with Umami Finance Against: Don’t do anything