Say bye to high APY👋
🧵
🧵
First, let’s address the elephant in the room. The APY.
While it was certainly a useful tool to:
> Bootstrap community
> Initialize token supply
> Initialize core mechanisms
The narrative became confusing and the “why” of APY was not communicated well.
(2/X)
While it was certainly a useful tool to:
> Bootstrap community
> Initialize token supply
> Initialize core mechanisms
The narrative became confusing and the “why” of APY was not communicated well.
(2/X)
We learned that if Olympus is to create sustainable growth, clarity should go hand-in-hand with that.
That's the core of the new Olympus.
(3/X)
That's the core of the new Olympus.
(3/X)
The new Olympus will focus on:
1. Stability
2. Sustainable Growth
3. Adoption
All our future efforts will be inline with those 3 values.
(4/X)
1. Stability
2. Sustainable Growth
3. Adoption
All our future efforts will be inline with those 3 values.
(4/X)
In this thread we’ll focus on the reward rate reduction which is now in effect after the recent governance approval of OIP-119.
If you want to view the OIP-119 contents click here:
snapshot.org
(5/X)
If you want to view the OIP-119 contents click here:
snapshot.org
(5/X)
At the protocol’s inception, the (3,3) meme took Twitter by storm, but this incentivized a passive approach toward interacting with the protocol.
A lower rate incentivizes Ohmies, protocols, and DAOs alike, to actively participate in the network.
(6/X)
A lower rate incentivizes Ohmies, protocols, and DAOs alike, to actively participate in the network.
(6/X)
Before the reward rate reduction, we have changed “APY” to “BR”.
BR (Base Rate) is the minimum annual rate at which $OHM supply expands. This rate, expressed as staking rewards, will be distributed to stakers at a new rate of 7.35%.
(7/X)
BR (Base Rate) is the minimum annual rate at which $OHM supply expands. This rate, expressed as staking rewards, will be distributed to stakers at a new rate of 7.35%.
(7/X)
This rate is derived from a 5% spread above the current 1-year stablecoin rate of return ( $DAI and $USDC average ), which results in the 7.35% Base Rate.
(8/X)
(8/X)
Having a lower BR gives Ohmies opportunities to be active protocol users through initiatives such as $OHM Bonds & efficient LP, which will be explored further down this thread.
Most importantly, it will allow for better alignment between the supply and demand of $OHM.
(9/X)
Most importantly, it will allow for better alignment between the supply and demand of $OHM.
(9/X)
You may be asking, “How do I make the most of my $OHM with this new structure?”
Let’s explore a couple of options:
(10/X)
Let’s explore a couple of options:
(10/X)
With $OHM Bonds, you will be able to provide the Olympus Treasury $OHM, for a bond denominated in vested $OHM w/ a higher BR.
This can help stabilize price by removing supply off the market and enhance the effectiveness of RBS treasury actions.
(11/X)
This can help stabilize price by removing supply off the market and enhance the effectiveness of RBS treasury actions.
(11/X)
As part of OIP-114, the Olympus community requested a testing period for $OHM Bonds known as Tantalus.
Round 1, using a Gnosis Auction, will soon be live to seek for an accurate market value of each bond type; 14 day & 28 day.
(12/X)
Round 1, using a Gnosis Auction, will soon be live to seek for an accurate market value of each bond type; 14 day & 28 day.
(12/X)
Providing liquidity also becomes more attractive.
With a low BR, providing liquidity can actually yield you more tokens rather than simply staking your OHM.
(13/X)
With a low BR, providing liquidity can actually yield you more tokens rather than simply staking your OHM.
(13/X)
As a protocol, having more liquidity helps facilitate a healthy econohmy, plus Ohmies get the benefit of added rewards with limited impermanent loss.
(14/X)
(14/X)
That’s just the tip of the iceberg.
There are countless use cases in development that we are not able to share yet.
With the launch of Olympus V3 next month, you’ll see these brand new innovations & realize the ways Ohmies can participate in this renewed Olympus.
(15/X)
There are countless use cases in development that we are not able to share yet.
With the launch of Olympus V3 next month, you’ll see these brand new innovations & realize the ways Ohmies can participate in this renewed Olympus.
(15/X)
We hope this explains the vision we’re heading towards with a reduced reward rate.
If you still feel lost / have questions regarding all of these new updates, please pop into the Discord; we’re ready to address any doubts you might have.
discord.gg
(16/X)
If you still feel lost / have questions regarding all of these new updates, please pop into the Discord; we’re ready to address any doubts you might have.
discord.gg
(16/X)
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