Summary

Request for community approval to swap some (up to you, minimum $1M) of $sDAI treasury remainder (after cooler loan allocation) to mint StakeUp’s $stTBY, and receive free volatile token allocation, which could be airdropped to holders.

Motivation

Olympus is at a stage where the treasury is focused on providing liquidity to holders through cooler loans, but the un-allocated remainder could also be put to use to benefit holders. Rationally, the DAO has been holding sDAI to capitalize on the high interest rate environment. stTBY presents a de-risked, community-driven alternative to sDAI. sDAI currently yields 5% and is dependent on the % of DAI supply staked in the savings rate contract as well as subject to MakerDAO governance (the savings rate has been lowered before), stTBY offers a more robust design with rates that are directly linked to US treasury bills, currently yielding 4.7%. At the same time stTBY also offers token supply ownership at no cost, with exponential potential for growth. In exchange for seeding stTBY liquidity, the DAO will receive 0.25% token supply / $M supplied. At $10M supplied, this would equal 2.5% of total $SUP volatile token supply. The DAO could contribute as little as $2M or as much as $20M to be eligible, at the same terms ($SUP allocation adjusts respectively).

Airdrop to OHM Holders?

Instead of retaining the $SUP allocation in the treasury, the tokens could be airdropped to Ohm holders. The DAO would end up achieving the same goal of providing cooler liquidity to holders while now also offering asymmetrical upside.

Put simply

$stTBY is designed to reinvent the Circle/Tether model in a fully decentralized way that shares all value with its users. This proposal allows OlympusDAO to own a significant piece of that without taking additional economic risk, simply mint and hold the stablecoin while still earning treasury yield.

How stTBY works

stTBY is a rolling yield vault, 1:1 mint/redeemable for USDC, which generates yield from Bloom TBYs. Bloom TBYs (docs.bloom.garden) are economically equivalent to treasury bills, as they produce yield by lending over-collateralized against treasury bill tokens. This means that yield and the stablecoin itself is ultimately secured by the value of the treasury token collateral. Unlike other RWA protocols, due to the loan structure, there are no KYC requirements or transfer restrictions. Therefore, the method of yield production is similar to that of MakerDAO, however, the risk is much more isolated as there is only one collateral asset. Further, the contracts are non-upgradeable and uncensorable, whereas sDAI could be censored in the future or risky collateral added to the system. stTBY presents a clean, safe yield opportunity for treasury management.

How $SUP Works

$SUP is the yield-bearing utility token for the StakeUp ecosystem. $stTBY charges three fees: Mint fee (1bps), Redeem Fee (50bps), and Performance Fee (10% yield). Rather than being hoarded by a DAO treasury, 100% of fees go directly to $SUP stakers. Staking $SUP does not require a time lockup. As an early holder of a significant amount of circulating supply, OlympusDAO (or Ohm holders if Airdrop to holders route is preferred) would receive a high share of these fees during the startup phase. Then of course, the price of $SUP should change with the stTBY’s TVL, which will be heavily incentivized.

Where is the treasury collateral ultimately held?

The tokenized treasuries are issued by Swiss RWA token issuer Backed. Backed’s DLT program registration guarantees that even in the case of an exploit, value can be recovered through the Swiss courts. This process has been tested and verified by the StakeUp team. Custodian info for ib01 can be found at Backed.fi.

$SUP Tokenomics

49% of the supply is allocated to the team, investors, and launch partners including deals like this. 51% of the supply will be distributed to the community programmatically in support of mint volumes and deep curve pool liquidity.

OlympusDAO Treasury

OlympusDAO Treasurywill have the option but NOT the obligation to provide stTBY or DAI as liquidity on Curve to earn additional $SUP, $CRV rewards and trading fees.

Basic Revenue Model

Revenue Model

Data Sources Supporting the thesis

StakeUp Docs

Here is a basic model showing how much you would make vs treasuries if the $SUP tokens stayed at launch/raise FDV

The v1 of Bloom did a test launch with $2.2M TVL without the stablecoin model. Users gave feedback that they would mint much more if it were a stablecoin.

Project recently raised a $2M round led by $1.5b US Fund White Star Capital, previously backed by Chainlink Labs, BitScale VC (Lido), and angels from top DeFi teams.