PieDAO

Should PieDAO partner with OlympusDAO to acquire liquidity positions for our protocol?

“Invest in the future of your favorite protocol.” -Olympus

Over 20 DAOs have partnered with Olympus PRO to list bonding opportunities on the Olympus PRO Bond Marketplace. Protocols have the opportunity to select a LP token that yield farmers can bond [sell to the DAO] at a discount, receiving a governance token in return. For example, PieDAO could offer DOUGH in exchange for yield farmers bonding their DOUGH/ETH LP token from Sushi. As a result, PieDAO would add a revenue-generating LP position to the treasury and the yield farmer would acquire a discounted token from a protocol that that is now stronger financially as a result of the bonding.

Here is an example of a DAO that has acquired liquidity via OlympusDAO: BanklessDAO has acquired over $588,000 in the BANK/ETH LP token in the last couple months. If a yield farmer was to sell their position to Bankless DAO today, they would receive a 8.5% ROI [In the form of discounted BANKLESS DAO tokens] on their bonded capital.

"The problem with existing yield farms:

Liquidity leaves farms at an alarming rate. 42% of yield farmers that enter a farm on the day it launches exit within 24 hours. Around 16% leave within 48 hours, and by the third day, 70% of these users would have withdrawn from the contract.

The Olympus Pro Solution:

Bonds vest over a period of days set by the protocol and you are free to claim any pro-rata share. When users purchase Bonds through Olympus Pro, it allows Protocols to accumulate liquidity to secure longevity and price stability for everyone involved. This makes bonds a mutually beneficial exchange."

-Olympus

Resources: https://www.olympusdao.finance/pro