Olympus DAO

Summary: We can launch bonds using DAI instead of SLP as payment to increase supply production efficiency.

Background: We launched liquidity bonds two weeks ago with the intent of accumulating and locking SLP tokens. Since then, we have accumulated over half the pool valued at nearly $7m. While we should not replace LP bonds by any means, we should think about supplementing them with DAI bonds to increase the rate of supply production.

Abstract: Due to the way the treasury has to value LP tokens (using the Risk-Free Value equation), they are quite inefficient at producing supply. The treasury treats every $1 of liquidity as 3c for the purposes of backing tokens. With DAI bonds, every $1 given will be treated as $1. This means we can double the rate of supply production by diverting a mere 3% of bond demand. DAI bonds will also offer an alternative to smaller bonders or those who do not want to spend gas adding liquidity.

Motivation: Increase the rate of supply production, build up bond market with a second (more constrained) option. LP and DAI bonds can and should be played against each other.

Additional Context: Medium post on DAI bonds: https://olympusdao.medium.com/dai-bonds-a-more-effective-sales-mechanism-c9a57586f1f7 What is SalesLite: A contract we have been running for the past week which sells 4.2 OHM into the pool each epoch and mints new OHM (~ 10k per day) for stakers and the DAO. The downside of this approach is they are direct sales into the market.

For: Add DAI bonds and remove SalesLite For: Add DAI bonds and phase out SalesLite For: Add DAI bonds and keep SalesLite Against: Do not add DAI bonds