Proposal to add gOHM

Governance
#1

Proposal to add gOHM

Proposal to add gOHM as a capped collateral to Interest Protocol.

Overview

Governance OHM is a token representing governance ownership and rights to control Olympus DAO along with its associated treasury. Olympus DAO controls over $200M of assets, making it one of the wealthiest DAOs in DeFi. gOHM is used rather than OHM as it possesses governance rights (currently snapshot governance). Once Olympus DAO launches on-chain governance, it may be possible to make use of Interest Protocol’s ability to retain collateral voting rights.

Parameters

Token Address: 0x0ab87046fBb341D058F17CBC4c1133F25a20a52f

LTV: 65%

Liquidation incentive: 10%

Cap: 1K (~$2.5m)

Oracle Address: 0x9a72298ae3886221820B1c878d12D872087D3a23

Primary oracle: Chainlink (note this is the oracle for OHM, and should be converted using the OHM->gOHM index)

Secondary oracle: Uniswap v3 gOHM-ETH or Uniswap v3 gOHM-DAI (once a Balancer oracle wrapper is available Balancer should be used as a secondary oracle, as Uni v3 oracles are not as secure due to lack of full range liquidity)

Liquidity

MCAP: $224m

Balancer Liquidity: $60m

Coingecko 7-day avg 24hr volume: $573k

Notable exchanges: Balancer, Uniswap

Technical risks

  • Type of contract: governance token

  • Underlying asset: governance token

  • Time: 387 days

  • Value: control of staked OHM, control over Olympus DAO and Treasury

  • Privileges:

    • The gOHM contract can mint new gOHM in exchange for OHM
    • The OlympusDAO multisig can mint new OHM

  • Upgradability: No

Volatility Data

Prior to Jan 2022, gOHM traded at a huge premium to treasury value. This premium largely disappeared, and now gOHM trades ~15% below treasury value.

1 Like
#2

I am generally against OHM and all of the Olympus type contracts.

Olympus or OHM v1 basically destroyed people who bought it. OHM v2 is doing the same thing along with gOHM.

These Olympus protocols dilute so heavily that you basically have to ‘play the dilution game’ (i.e. vest or whatever is required to get those huge APRs) just to try to stay even. They are great for the insiders and OGs but terrible for those who come in later and later.

It doesn’t matter if you earn 400% APR/APY if the price of your holding drops to 10% the value in 12 months.

Everything you need to know about OHM is in the following from the olympusdao.finance page.

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Fully diluted OHM market cap (from etherscan 0x64aa3364f17a4d01c6f1751fd97c2bd3d7e7f1d5 ) is:

289.2M, treasury listed on the Olympus website above is 63.6M which means ‘at best’ $1 worth of OHM is backed by $.22 of treasury assets.

I suggest people take a look at the links at the bottom of the CMC page.

OHM v1 was suggested to Maker. Here is the discussion thread.

While some of the issues were addressed many others aged pretty well. In particular @PaperImperium comments for the most part have aged pretty well.

1 Like
#3

These Olympus protocols dilute so heavily that you basically have to ‘play the dilution game’ (i.e. vest or whatever is required to get those huge APRs) just to try to stay even.

There never were any long locks required to get big APRs. At worst you could argue that the high APRs were misleading marketing designed to attract retail to buy something they didn’t understand. Those high APRs are over now. As of today the annualized rebase APR is 7.3%. gOHM is a liquid token with no vesting that automatically receives all rebase rewards.

289.2M, treasury listed on the Olympus website above is 63.6M which means ‘at best’ $1 worth of OHM is backed by $.22 of treasury assets.

When it comes to the 63.6M treasury comment, I think you are mistaken. According to Olympus’ website, they have at least $166M of stablecoins with a $244M total treasury. Napkin math tells me that we should subtract $30M from that figure as it includes OHM held in the treasury. That puts the treasury value at $214M, which puts the backing per $1 of OHM at ~$0.95.