Olympus DAO

Note: This Snapshot is being reposted with the correct amount of OHM required to seed the reactor

Summary: Olympus has been awarded a Tokemak liquidity reactor as a result of the C.o.R.E voting event, which will initially provide up to $18 million in additional liquidity to OHM. Given that most OHM holders will prefer to remain staked in sOHM rather than LP in the tOHM reactor, the protocol should seed the reactor with OHM from the DAO treasury.

Motivation: Following the C.o.R.E event, Olympus executed a DAO token swap with Tokemak. Tokemak will use the OHM as a reserve for tOHM. Olympus will use the TOKE to serve as a liquidity director by staking it in the tOHM reactor. This will allow Olympus to initially direct up to $18 million in liquidity (e.g., OHM-ETH), though this amount will expand quickly. The OHM in the tOHM reactor will earn TOKE rewards that, while attractive, will likely lag behind OHM staking rewards at scale. As such, most OHM holders will prefer to remain staked in sOHM. The Olympus DAO treasury holds approximately 800,000 OHM as of the time of this writing. Utilizing DAO OHM holdings to seed the reactor would require a de minimis contribution with an outsized impact: the DAO would provide incremental liquidity to OHM while earning more TOKE.

Proposal:

Utilize ~9000 OHM from the DAO (~1.1% of the DAO OHM balance) to seed the tOHM reactor Monitor reactor capacity and add OHM from the DAO as appropriate