Snapshot vote 4: Olympus Pro

This post is for input ahead of a proposed Snapshot vote using GRO (this will include vesting GRO and locked GRO).

After receiving community feedback here and making any necessary amendments, we aim to propose a formal vote to the DAO on https://vote.gro.xyz.

Background

Since the launch of Gro DAO token (GRO), it has accumulated $20M liquidity ($34M total pool liquidity) across Uniswap v2 and Balancer in GRO/USDC, GRO/GVT, GRO/WETH, and GRO/PWRD pairs. The daily trading volume is now at $3-6M across these pools.

The community has provided feedback that the current liquidity level could be deepened to ensure price stability. This would allow larger transactions to take place without causing unnecessary jump in token prices. At the same time, a deeper liquidity would also improve user experience as the slippage or price impact would become smaller for each trade.

OlympusDAO is one of the Gro’s first PWRD treasury users and this proposal is another step to deepen the collaboration and relationship between the two DAOs/protocols.

Proposal to initiate Olympus Pro bond with $250K GRO

Gro proposes that the DAO allocates $250K Gro DAO tokens (GRO) to initiate an Olympus Pro bond in its Cohort 3 launch on Friday 19th November. If this vote passes, the DAO treasury would offer GRO in exchange for protocol-owned GRO/PWRD liquidity.

  • Olympus Pro is a well-received liquidity management program with 16 partner protocols on Ethereum and Fantom since its September launch.
  • GRO/PWRD is a new Uniswap v2 pool where there are no liquidity mining rewards offered at the moment; this provides a clean read of the bond’s performance in drawing in additional liquidity in the absence of GRO incentives.
  • LP tokens obtained through this program will remain in the treasury to generate trading fee income while providing liquidity to the market.
  • $250K GRO represents a very small increase in circulating supply (<1%) and a even smaller portion of GRO allocated to the treasury (<0.3%); in the event that all bondholders sell their GRO tokens obtained in this program after the 7- or 14-day vesting period, it would have limited impact to GRO holders.
  • Bond price will be determined by market demand; higher demand for the bonds will increase the bond price and vice versa.
  • The program duration is flexible; if the result is unfavourable (e.g., limited market appetite), Gro DAO can sunset the program by not renewing the $250K allocation to the bond’s custom treasury contract.
  • OlympusDAO will get 3.3% of total bonded value in Gro DAO tokens in return for providing the bond instruments and marketplace; as OlympusDAO has “skin in the game” through holding our governance tokens, it will have higher incentives to collaborate with us in growing Gro.

Summary

We see the Olympus Pro program as an opportunity to deepen GRO liquidity and strengthen our working relationship with OlympusDAO.

Please add your suggestions, objections and support in the comments below. Let’s get governing :purple heart:

Reference

Olympus Pro - introduction article

Olympus Pro - documentation

2 Likes

I am ready to support this proposal, new partnerships will benefit our project and allow it to be more flexible in any situations

2 Likes

Another proposal that I’m fully supportive of. The Olympus team along with their community is vibrant, well-known and performing highly effectively in terms of both the success of their protocol to date and community engagement, granted that it’s only been half a year or so since they launched. Having an Olympus Pro collaboration is a small marketing exposure indicating that Gro is a serious play in the upcoming DeFi space. And the self-owned liquidity will be important to grow treasury revenue through fees, and implicitly also through some PWRD rebases (PWRD as our own treasury allocation woot)!

There are several things I think should be considered:

  1. We would need to make it clear to the community that Olympus bond system is a very active strategy to take advantage of. Users would need to provide into LP, then stake, then claim (perhaps multiple times if they so wish). With the current gas environment, which we don’t know when it will end, it may be hard to do for a large number of our users. It’s just unfortunately the case and I don’t think Olympus Pro is available in Avalanche anytime soon, just Fantom

  2. I would consider to increase the maximum GRO to be sold through bonds to be around $400k - $500k GRO, 1.6 - 2 x the planned $250k. Taking into account current $GRO price sitting around $10 - $11 and seeing the top GRO holders besides the first 6 (they are Gro protocol’s related contracts it seems), the next 6 highest holder holds around 11k - 21k GRO each. It will be a shame if the bond allocation is used up all by the top holders, which is possible given how Olympus bonds work and a deep enough discount. It may be inevitable since bonding is an active approach, but I think we should try and make the most out of initiatives that give whales a leg up. By increasing the maximum limit at the very least it makes it more unlikely that any market participant as of currently will be able to take all the bonds available without doing at least the following:

    • Buy more PWRD, which increases PWRD’s TVL growing protocol growth a bit
    • Buy more GRO, creating a bit of initial buy pressure and to try and offset potential sell pressure on a dump
2 Likes

Thank you Slacking! Sorry I haven’t replied earlier!

On your points:

  1. Good point! Gas fees notwithstanding, we need to continue communicating with our community in how to take advantage of the Bond program. The first step is the Thursday AMA at OlympusDAO discord where all Cohort 3 members will join Olympus to talk about the bonds, but we should also go beyond the AMA to help everyone understand how it works. I’m hopeful that our new G-force members could step in to help, but will also think more about how to engage & enable the community in this.

  2. We can up the bond size after the initial phase! To make sure this doesn’t only benefit the whale holders, we can also lower the max amount each transaction could bond in any given day. I agree with you that it would be beneficial to our community to make sure the bond is more spread out and motivating participants to acquire PWRD and GRO in order to bond!

Update from our Snapshot vote:

It passed with 88.45% votes for the proposal. The team has confirmed our go-ahead with OlympusDAO to launch the GRO/PWRD bond on 19th November.