Olympus DAO

Summary: Open a liquidity pool on Fraxswap to enable TWAMMs, strengthen alignment with Frax, and prepare for Atlantis.

Background: Olympus has a liquidity presence on Sushiswap, Uniswap, Balancer, and Curve. The protocol provides more than $140m in liquidity across pairs. The recently passed OIP-93 enables “Mint & Sync”, which removes opportunity cost for LPs on XYK AMM pairs and allows third parties to participate as liquidity providers.

Fraxswap is a new AMM infrastructure created by Frax protocol. It features a consolidated router for xyk pools and stableswap, concentrated liquidity pools (both not yet live). It is the first AMM to introduce the Time Weighted AMM (TWAMM), a tool to smoothly execute large orders over time directly on the pool. Fraxswap will serve as the infrastructure for Atlantis, an upcoming DEX that is strongly aligned with the Olympus mission and vision; any pool deployed onto Fraxswap today can be added to Atlantis in the future with no further action.

Motivation: Align closer with entities (Frax, Atlantis) seeking to strengthen and further the mission of Olympus. Expand the liquidity presence of OHM. Enable new policy tools and use cases with the availability of the TWAMM. Retain capital by escaping sushiswap fees.

Considerations: Migration of liquidity from a DAI pair on Sushiswap to a FRAX pair on Fraxswap. Short term liquidity fragmentation.

Implementation Details:

Remove 9.5m DAI and equivalent OHM from DAI-OHM pool, and add 9.5m FRAX and equivalent OHM to FRAX-OHM pool on Fraxswap. Remove (now redundant) FRAX-OHM pool on Uniswap V3.