[Proposal] Engage Olympus Pro To Purchase Protocol-Owned Liquidity With NDX

Proposals
#22

In a few days, I will move this proposal to a Snapshot vote for NDX holders under these specific terms:

“Adjust amount of NDX to be transferred from the Treasury to the liquidity mining Masterchef via Governor Alpha from 900,000 to 200,000 for now, and reserve 100,000 NDX of the withheld amount to purchase equal amounts of DEFI5-WETH and FFF-WETH liquidity through Olympus Pro.”

It’ll be a straight up or down vote.

This leaves to the side entirely the matter of ‘when do we actually engage’ and ‘what do we do with the remaining 600,000 that hasn’t been allocated’, but rather is a statement of intent.

I’ll post the link to the Snapshot when it’s up.

1 Like
#23

Thought it’d be useful - for context - to see the dates at which point we’re expecting to hit various ‘tokens emitted’ milestones. This should help visualise where we ‘are’ in terms of considering early termination and/or potential reallocation of tokens.

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This is sourced from here.

‘Removing’ 100,000 NDX from the liquidity mining scheme would involve pulling back the end of the scheme by five months (the curve fairly rapidly degrades towards the end).

2 Likes
#24

I had to read this proposal and the posts a few times to fully understand, and i think @Glueeater summed up best.

I certainly have been enjoying the current LP token rewards, but I can see that an alternative is needed. Shifting 100,000 NDX for the test case seems relatively low risk and will inform whether a more significant shift of the NDX emissions to this approach is warranted.

#25

Following on from a fairly active thread, a Snapshot is now live that proposes that the DAO engage with the above on slightly modified terms:

https://gov.indexed.finance/#/proposal/QmVXeD5uobhDNPUEdkyep4q9K2LN1FGBxMmXG1BQWjosQ5

Specifically, the decision about what liquidity to acquire (in terms of what index products), as well as discount, vesting period etc. are all to be dealt with at a later stage.

#26

Since dNDX isn’t proxied to snapshot I’m recording my YES vote with 1156 NDX here instead.

https://gov.indexed.finance/#/proposal/QmVXeD5uobhDNPUEdkyep4q9K2LN1FGBxMmXG1BQWjosQ5

#27

I’m too late for this but still replying to spread some awareness.

It is a great idea, but why don’t we wait for the results of this audit before taking any action. Emphasize the risks more in discussion. The past two audits of Olympus had some questionable observations. The third audit is still on-going.

Since we’re spending a lot of NDX to purchase liquidity held on their platform we are exposing ourselves to twice the risk. Which IMHO is downplayed to ‘relatively low’ earlier in this thread.

Reducing token emission as a source to fund the purchase of DAO-owned liquidity on other platforms doesn’t resonate with me at all. This is (negatively) impacting my $NDX yield prospects, even if just by a little. There’s no guarantee it won’t happen again…

I think we should discuss the source of this funding. How are we going to deal with this in the future, when new proposals will template this one. Which options do we have, what justifies this option.

#28

More discussion is certainly needed and expected, this first step is to authorize use of 100,000 NDX only.

I agree that we should inspect the results of the Olympus Audit carefully.

With respect to ongoing risk due to Olympus Pro protocol, the way I understand it is that once the LP bond is vested (7-days) using Olympus Pro the liquidity is fully owned by the Indexed treasury, Olympus has no ongoing involvement except that they retain 3% of the NDX that was issued in their treasury.

#29

Disclosure: After doing research related to this proposal I opened a speculative position in OHM as I see the possibility of broad appeal of protocol owned liquidity. Olympus could become a diversified holder of participant Protocol tokens if they are successful with Olympus Pro.

#30

The liquidity won’t be held on their platform. It’ll be held by our own DAO treasury.

Does that change your analysis at all?

#31

Yes I think I didn’t understand

#32

Following on from the unanimous Snapshot vote in favour of engaging with Olympus Pro, the DAO must now decide what asset to purchase liquidity for.

I have set up a Snapshot vote [set to go live at midnight UTC on the 15th of October] here:

https://gov.indexed.finance/#/proposal/QmWgPwu7W1xRgyNqBnuP2WGjEFaFQYTdXQ1RatCk6sXdEn

Choices are:

  • DEFI5-ETH
  • DEGEN-ETH
  • CC10-ETH
  • NFTP-ETH
  • FFF-ETH
  • ORCL5-ETH
  • NDX-ETH

You can select and rank as many of these options as you wish in your vote.

If you are currently within an NDX timelock, your tokens are delegated back to you, and you can vote on this. If you are not, you need to delegate to yourself or someone else within the next day if you haven’t already (use Tally’s Delegate Vote functionality if you’re unfamiliar with the process) in order for your NDX tokens to be eligible.

In the interests of keeping as many parameters fixed as possible - and having spoken to Olympus - a 30 day bond program is likely best - asking for longer requires more weekly emissions (and hence more NDX to be put up to be bonded) in order to be gas efficient.

This vote will run for one week, following which a Governor Alpha vote will be put forward to transfer the 100,000 NDX from the Treasury to a contract deployed by Olympus for this purpose.

See you at the polls!