​​​​​​​The Agora Dispatch — Olympus Community Weekly Newsletter — Wednesday 27 October 2021

Welcome to the Agora Dispatch — an Olympus community run newsletter — made by Ohmies, for Ohmies!

Summary

  • Editorial — Olympus DAO
  • Olympus Pro — Cohort 2 launch
  • More information on V2 migration
  • Lower LTV for sOHM on Rari Fuse pools
  • OHM-WETH SLP bond goes live
  • Scammers are out in full force again
  • Klima Updates — Bonds launch and negative discount
  • Proposals — Funding of Tokemak Reactor and Liquity whitelisting
  • Range Protocol — A new surprise from Zeus
  • From the Frontlines — with Sherpa DC (3,3)
  • Twitter thread — Unbanksy on growth
  • Ohmie of the Week — Zap
  • Numbers at a glance — $600 million Treasury, $10 million in LP Fees
  • Meme of the Week — Age of Ohmpires (credit Jawz)
  • State of the DAO — Weekly update
  • Opportunities to contribute — join us
  • Agora’s Learning ancient-Greek mythology series — Hercules pt. 4: The Twelve Labors (Labors 10–12) & Later Life

Editorial — Olympus DAO

We watched a twitter drama play out this Monday last. What made this particular drama noteworthy was that it highlighted the importance of having a decentralized protocol.

Decentralization means that when emotions get the better of people — the collective interest will prevail.

We have mentioned it before, but building a DAO operation is very, very difficult and our operations team (coordinated by Dudemyguy) has, and continues to, put in the work to see it built.

Our DAO is now a well-oiled machine primed to deliver consistently over the coming months and years.

OHM will continue to command a premium because of the potential & results of our DAO.

And our DAO is backed by every Ohmie.

https://twitter.com/OlympusAgora/status/1452966835985346566

Olympus Pro — Cohort 2 launch

Olympus Pro is expanding at a fast pace. It launched humbly with seven partners at first, and collectively, they have now generated more than $300K in revenue for Olympus. Apparently, the benefits of POL have caught on with other protocols — the partners for Cohort 2 were announced on 27 October, including:

With more than 30K members in the Community Discord, the Olympus team is aware of the pressing need for better communication with the community. An AMA session will be organized in the Discord on 30 October, 5 PM UTC to field any questions you may have about Olympus Pro. Be sure to mark your calendar and get ready to learn all about the benefits of Olympus Pro.

https://twitter.com/NourHaridy/status/1453065747471781900

More information on V2 migration

Updates for each stakeholder in the Olympus community who will be affected by the upcoming V2 migration (don’t panic, there are still several weeks before anyone has to do anything):

i. Stakers

For now, you don’t have to do anything. When the migration is live, the Olympus front-end will be updated to allow the migration of v1 OHM tokens (i.e. OHM, sOHM, and wsOHM) to gOHM. As usual, there will be two transactions involved: “Approve” and “Execute”.

ii. Bonders

For now, you don’t have to do anything. During the migration, existing bonders will continue to earn bond rewards. However, when liquidity pools are migrated, new LP bonds will only accept V2 OHM. So, if you have existing OHM that you want to bond with, you should consider migrating.

iii. Treasury

Funds from the protocol’s V1 treasury contract will be migrated to the V2 treasury contract.

iv. Borrowing platforms

For now, you don’t have to do anything. In a few weeks when migration goes live — borrowing platforms such as Rari Fuse Pools & Abracadabra will start to accept gOHM. Existing deposits that use V1 OHM will not be affected — we understand there is some work being conducted on a loan migration tool.

v. LP (liquidity provider) pools

Existing liquidity will be removed from the LP pools that use V1 OHM to new LP pools using v2 OHM.

Lower LTV for sOHM on Rari Fuse pools

This information is only relevant for holders who are borrowing against their sOHM in the Rari Fuse Pools — Fraximalist Money Market or Tetranode’s Locker.

Please consider rebalancing your debt as the LTV (loan-to-value) ratio for sOHM in these pools are expected to be lowered to 50% and 66% respectively by 28 October 2021:

https://twitter.com/fraxfinance/status/1452478728315957250

Why is this important? With a lower LTV, you get a higher liquidation threshold. Consider the following scenario:

LTV: 76%

Borrowed amount: $1000

Deposited sOHM: 3

To calculate the liquidation threshold, simply divide the borrowed amount by the LTV ratio:

Liq. threshold = $1000 / 0.76

= $1315.79

For you to get liquidated, the price of OHM will need to drop below the liquidation price, calculated as follows:
Liq. price = Liq. threshold / deposited sOHM

= $1315.79 / 3

= $438.60

Now, consider a second scenario with a lower LTV, say 66%, while keeping the rest of the variables constant:

Liq. threshold = $1000 / 0.66

= $1515.15

Liq. price = $1515.15 / 3

= $505.05

As you can see, a lower LTV translates to a higher liquidation price, which means you can get liquidated more easily.

So please, keep your loan amount low — you don’t want to be anywhere close to the LTV ratio — and repay your debt if necessary.

OHM-WETH SLP bond goes live

You may have spotted some new bond offerings in the form of OHM-WETH SLP which rolled out on 27 October. Users can start adding OHM-WETH liquidity on Sushiswap and trade the LP tokens for discounted OHM on the Olympus website.

In spectacular fashion — within 9 hours of launch, the treasury has already amassed about $5M in liquidity. As Olympus starts building up its OHM-WETH liquidity, it is expected that users will incur less slippage when they are trading OHM tokens — WETH is the primary pair base token in many DEXes, so it enables more route options for trading between OHM and other tokens.

In the meantime, Zeus muses about the impact of this on Olympus and the whole Ethereum ecosystem:

https://twitter.com/ohmzeus/status/1453102272725069829

We guess only time will tell.

Scammers are out in full force again

With over 45K Ohmies — Olympus seems to be attracting more and more attention from scammers seeking to dupe unsuspecting Ohmies out of their hard earned OHM.

The most recent scam appears to be a fake website that tricks users into giving away their private keys:

Agora would like to remind Ohmies that you should NEVER share your wallet seed phrases or private keys with anyone. Always practice good opsec (operational security) when it comes to securing your wallet assets. You can learn more about the topic in this YouTube video posted by our friends over at Alchemist DAO.

Klima Updates — Bonds launch and negative discount

KlimaDAO launched its first bonds, BCT/KLIMA and BCT/USDC LP bonds on 20 October and has secured more than 6000 tonne of carbon in its treasury since:

https://dapp.klimadao.finance/#/bonds

Due to the unusually high demand, the first day of the launch saw the bond discount turn negative quickly, meaning users would have to pay more to bond. As many users were unfamiliar with the bonds mechanism, people continued to buy up bonds, causing the discount rate to drop even further.

Please DO NOT purchase bonds when the bond discount is negative. Instead, you should purchase KLIMA tokens directly from the market (i.e. Sushiswap on Polygon) or wait for the bond discount to turn positive when the demand cools off.

As an aside, here are some of the useful resources created by the Klimates:

Proposals — Funding of Tokemak Reactor & Liquity whitelisting

We saw a few updates to proposals this week:

OIP-39

Following a successful C.o.R.E voting event, Olympus seeks to fund the tOHM Tokemak Reactor with OHM tokens from the DAO.

Rather than incentivizing Ohmies to provide OHM liquidity, the author proposes to use the DAO holding — it is anticipated that most Ohmies wouldn’t want to miss out on the high staking rewards offered by Olympus.

Due to a typo in the proposal, the current Snapshot will be annulled. You don’t need to vote for this proposal until the amended version is uploaded again.

You can read the full details of OIP-39 on the Olympus forum.

TAP-5

The proposal to whitelist Liquity’s Stability Pool and allow Olympus to stake the LQTY tokens has been approved with more than 99% votes.

As a result, the LUSD stablecoins in the treasury will become a productive asset in the Liquity Stability Pool to farm LQTY tokens and earn any liquidation fees.

Range Protocol — A new surprise from Zeus

Zeus descended from his mountain to unveil an experiment he has been working on.

If you have used Curve or Uniswap to swap between stablecoins, you should be familiar with the underlying mechanism — the pool automatically rebalances to ensure the value of both tokens in the pool remain in proportion. The LPs (liquidity providers) charge a fee for each trade to offset any IL (impermanent loss) risk — though the risk is minimal as the price of stablecoin experiences less fluctuation.

Zeus asked the question: Is the pricing curve model of these pools redundant? What if we could substitute it with a range model such that irrespective of the token price, users can always trade between stablecoins at a 1:1 ratio, as long as a proportion of each token stays within a certain range?

We are excited about how this might play out in practice. Note that the protocol is still unaudited and experimental, but if you are an advanced user you can start interacting with the contract via Etherscan.

https://mobile.twitter.com/ohmzeus/status/1452765658232590342

From the Frontlines — with Sherpa DC (3,3)

Each week we check in with DC (3,3) to see what were the most asked questions on Discord. This week’s questions were:

1. Why has the APY been going up?

APY rises a bit when the number of stakers decreases; and it lowers slightly when that number increases. The recent launch of the LUSD-OHM crucible rewards and the Tokemak Reactor means there is less sOHM receiving rewards, and hence a higher APY.

2. When will Olympus Pro add more partners to its Bonds Marketplace ?

Well friends, the wait is over. Synapse Protocol, Thorstarter, PoolTogether, Inverse Finance,

and Barnbridge are included in Olympus Pro Cohort 2. Their bonds should be available throughout the week, so keep an eye on the Bonds Marketplace if you plan to grab some of their tokens at a discount.

3. I bought wsOHM on Avalanche or Arbitrum. Where can I stake it to earn rebase rewards ?

It is earning rewards already — while although wsOHM does not rebase — it does accrue rebase rewards in the form of an increased sOHM balance when you unwrap it at a later time.

4. What is the difference between Risk-Free Value (RFV) vs Market Value (MV) ?

RFV vs MV are different metrics for pricing the backing of OHM.

MV backing uses the market value of LP tokens while in RFV backing, these LP tokens are marked down to a very conservative value, or RFV. You can learn more about the rationale behind this in this Olympus Medium post.

5. What is Olympus Playgrounds ?

Olympus Playgrounds is a place to learn and experiment with numbers regarding your OHM investment. For example, you can compare various bonding strategies to see if they beat the simple hold-and-stake strategy of (3, 3).

Note that this tool is strictly intended for educational purposes only. The simulation results and other information displayed on the website should not be construed as financial advice.

Twitter thread — Unbanksy on growth

This week Unbanksy digs into his thesis on growing from something small to something great. What is the secret?

https://twitter.com/unbanksyETH/status/1453166228961333254

The thread argues that to get past a $500 million market cap a project needs the following:

  • Brilliant founders and idea
  • Good community culture
  • Hard work from the DAO

If you have a brilliant idea, you need the support from the community who can provide solidarity and help you iron out issues on all fronts (e.g. marketing, partner relations). Acting alone is like rolling a boulder up a hill — a Sisyphean task. At a certain point, a project might reach a plateau where new innovations are needed to attract more capital.

For us that’s the DAO- they continue to buidl and innovate through Olympus’ highs and lows — think 3,3 Together, Olympus Pro partner expansion, and a host of other new initiatives brewing in the DAO.

More to come!

Ohmie of the Week — Zap

This week’s Ohmie of the Week is Zap — he is a big brain Ohmie that has a deep understanding of the ins and outs of all the Olympus mechanics — the Ohmie the Sherpas go to when stumped in #questions. He is also an active contributor over in the DAO — cooking up the goods in data and metrics.

A long time member of the Olympus community and unfailingly kind to his fellow Ohmie — we are proud to call him Ohmie of the Week!!

Numbers at a glance — $600 million Treasury, $10 million in LP Fees

As we do each week, we returned to Delphi to gather up the latest breakdown of the treasury numbers and protocol statistics (you can access it yourself here if you crave). Please read on for this week’s numbers at a glance:

1. Number of Ohmies: 44,780(+7,852)

  • October 12: 29,707
  • October 19: 36,928
  • October 26: 44,780

Welcome to all the new Ohmies! Keep a lookout for them in the Discord and show them the hospitality of Olympus!

2. Market Value of Treasury Assets: $619,413,551 429,497,796

  • 7-day change: +$189,915,755 (+44.2%)
  • 30-day change: +$413,294,236 (+200.5%)

The Market Value of Treasury Assets shows the current market rate of all of the assets held within the Treasury.

3. Risk Free Value of Treasury Assets: $123,488,422

  • 7-day change: +$25,138,243 (+20.4%)
  • 30-day change: +$90,101,533 (+154.0%)
  • RFV Per OHM: $46.14
  • Based on current circulating supply of 3,245,001

As a reminder, when the supply growth of OHM outpaces the revenue inflow, RFV per OHM will drop — this is part of the motivation behind OIP-18 as covered in the August 18th edition of the newsletter.

4. Olympus Pro Treasury Holdings: $306,694

  • 7-day change ($): +$134,889
  • 7-day change (%): +78.5%
  • The Olympus Pro Treasury holds the tokens of partner protocols who are utilizing the Olympus Pro platform. The tokens are generated via a 3.3% fee charged for use of the platform.
  • While relatively small currently, the mutual benefit received by both Olympus and the partner protocols far exceeds the amount of fees received.

5. Protocol Revenue:

  • Protocol Revenue (past week): $113,994,755
  • Week-over-week growth of +55.2%
  • Month-over-month growth of +187.5%
  • Annualized rate (using 7-day MA): $5,944,012,225

6. Liquidity Provider Fees

  • Total LP Fees Generated: $10,939,812
  • $1,559,471 in fees generated in one week!
  • Week-over-week growth of +16.6%

Via: Dune Dashboard

Olympus has taken in over $10.93M in LP fees to date. It is worth noting that these LP fees are collected in both OHM and the stable asset (either DAI or FRAX) at 0.25% per trade on Sushiswap and 0.30% on Uniswap.

7. Current Runway: 404 days

At the current reward rate of 0.297%, Olympus can continue to distribute OHM rewards for 404 days even if it stops bringing in revenue. That’s over a year of runway and a +5 day increase over the past week!

If you need a recap on what runway is, check out this twitter thread from @xh3b4sd.

8. Current Index: 26.725 OHM

Current Index measures your current OHM balance if you had one OHM staked since the first epoch.

The following table compares the difference in your current OHM balance based on your staking date:

The price of OHM on 15 June was about $204.28. If you staked one OHM since then, you would have more than quintupled your stack now to 5.809 OHM! OHM’s price today is around $1,131.57. Let’s find out what is your ROI:

  • Principal: $204.28
  • Return on 26 October: 5.809 * $1131.57 = $6573.29
  • Principal gain = $6573.29 — $204.28 = $6369.01
  • ROI = ($6369.01 / $204.28)*100% = 3117.784%

Investing in OHM back in the middle of June would give you about 31x return today. Don’t underestimate the power of compounding.

9. Macro numbers from around the cryptoverse:

Meme of the Week — Age of Ohmpires (credit Jawz)

This week’s Meme of the Week comes from Jawz himself — reflecting on OHM’s rapid rise up the chart rankings — could we flippen the king?

Age of Ohmpires

State of the DAO — Weekly update

The DAO is a like a soaring eagle!

We highlight some of the updates that happened in the DAO over the past week:

Community and Content

Do you know we have a YouTube channel called Olympus Agora? We upload recordings for some of our products such as Agora Podcast and Agora TV regularly to target YouTube audiences. Recently, one of our new contributors took the initiative to produce an audio visualizer for our Podcast episode with Girth Brooks. We think it is cool and want to give a shout-out to donmijoo for his effort.

Also, the glOHMal team has created a new Medium publication dedicated to French Ohmies. We heard another Medium publication is in the works too, this time offering French translation for just the Agora Dispatch newsletter. As Olympus extends its reach to other countries, expect more of these translation efforts in the future.

Marketing and Design

As we anticipate the launch of more Cohort 2 partners this week, the Marketing team has all hands on desk as they need to confirm all the launch details and ensure the accuracy of tweet copy.

Operations

tip.cc has always been the go-to choice for OlympusDAO to distribute payout to contributors. The gasless tipping feature is cool, but it has its fair share of problems too: delay in fund deposit and inability to locate certain Discord members are some of them. The Operations team has been setting up Coordinape as a new way to allocate payout to team members. Barring a few contributors who have yet to sign up for the tool, the team is ready to test out Coordinape some time soon.

Engineering

Though all the deployed contracts in Olympus have gone through audits, it doesn’t mean the protocol is exploit-proof. The Solidity engineers are well aware of the hidden danger present in the blockchain space, and no amount of safety is safe. Consequently, they have been writing unit tests to make sure the contracts are behaving as intended, such as this test which covers the staking contract.

Policy

During the market downturn last week, the Policy team adjusted the bond capacities to take in more OHM-DAI and OHM-LUSD bonds. This allowed the pools to support larger trade sizes with little price impact.

The members also drafted two proposals to introduce new bond types: WBTC bonds and OHM-WETH bonds. Both proposals were posted on Snapshot subsequently with the majority voting in favor for both.

Partnership

In anticipation of Cohort 2 launch, the Partnership team has been getting in touch with the partners involved to schedule launch time and get all the necessary information (e.g. multisig address, emission rate). Not only that, they had to manage the internal logistics within the DAO so that each team is aware of their responsibilities and be able to coordinate with each other.

Opportunities to contribute — join us

To get involved with what is happening atop Mount Olympus, join the DAO Discord.

Once you are in, head to the #dao-start-here channel and read the instruction carefully so that you can get assigned a role.

Have any questions? Just ask in the #general-dao channel and a helpful Ohmie will appear to guide you along your path.

Keep it (3,3), till next week Ohmies — with love from the Agora Dispatch team.

Agora’s Learning ancient-Greek mythology series — Hercules pt. 4: The Twelve Labours (Labours 10–12) & Later Life

Preface: This is a continuation of the story of Hercules following last week’s coverage of Labours 5–9. If you missed it, you can find it in the October 19th edition of the Agora Dispatch HERE (near the bottom of the document).

Tenth Labour: Steal the cattle of the monster Geryon

Hercules’ tenth labour was to take the cattle of the 3-headed giant Geryon and return them to Eurystheus. To reach Erytheia (where Geryon resided), Hercules had to cross the large, sprawling Libyan desert. Frustrated and impatient, Hercules got so angry at the heat of the desert that he shot an arrow towards the sun. Helios, the Sun God, was surprisingly impressed with Hercules and gave him a golden cup with which he was able to sail across the sea and reach his destination.

Hercules then arrived in Erytheia, where his first opponent was Orthus, Geryon’s two-headed dog. A single blow with his deadly club was enough to kill the dog. When Geryon heard what happened, he swiftly took his three shields, three spears and three helmets and went after Hercules. However, Hercules, having smeared the blood of the Lernaean Hydra on the tips of his arrows, shot an arrow against the giant and killed him by piercing through his skull. Hercules secured the cattle and returned to Eurystheus.

Eleventh Labour: Steal the Hesperidean Apples

The eleventh Labour was one that Eurystheus believed was truly impossible to complete, even for Hercules: steal 3 Golden Apples from the garden of the Hesperides. The Hesperides were nymphs who protected the garden and were disciples of Hera, giving the garden a divine protection. When Hercules arrived at the garden, he encountered Atlas holding up the heavens on his shoulders. Hercules persuaded Atlas to get the three golden Apples for him by offering to hold up the heavens in his place for a little while. Atlas was able to retrieve the apples successfully as he was a relative of the Hesperides.

When Atlas returned, he decided that he did not want to take the heavens back, and instead offered to deliver the apples to Eurystheus himself, but Hercules tricked him by agreeing to remain in place of Atlas on the condition that Atlas relieve him temporarily while Hercules adjusted his cloak. Atlas agreed, but Hercules reneged and walked away with the apples.

Twelfth Labour: Capture Cerberus, Guardian of the Underworld

The last — and, thus, most difficult — of the Twelve Labours of Hercules was bringing Cerberus up from the Underworld. Cerberus was the massive, three-headed dog guardian of the underworld owned by Hades. Hercules was granted access to the underworld by the gods and was able to convince Hades to let him battle Cerberus. Hades allowed it, but only on the condition that Hercules managed to do it without using any weapon.

Even though he was bitten by Cerberus’ serpent-tail, Hercules managed to put the dog in a stranglehold and persevere long enough until Cerberus finally passed out. After this, Hercules chained and dragged the hound to Eurystheus, who was so horrified by the sight of the beast that he instantly hid in his great jar (as he did with the Cretan Bull). From the safety of his jar, Eurystheus begged Hercules to take Cerberus back to the underworld and promised that he would not have to complete any additional labours.

Other Exploits

Even after completing the twelve labours (which granted him immortality), Hercules did not rest and continued to purge the world of evil. Although it is nearly impossible to list all of Hercules’ exploits in a short summation of his story, we can highlight several of the most notable:

Killing Prometheus’ Eagle

On his journey to steal the Hesperidean Apples, Hercules stumbled upon the chained Prometheus (whose story we covered in a previous edition of the Dispatch). Having a common love for mortals, Hercules killed the Eagle that tortured Prometheus and freed him from his prison.

Freeing Theseus from Hades

During his twelfth labour in the Underworld, Hercules came across Theseus and Pirithous, who had both been eternally trapped in the Underworld while trying to rescue Persephone (also covered in a previous edition of the Dispatch). While Hercules managed to save Theseus, Pirithous was left behind as Hades would not allow him to return to the mortal plane.

Fighting Apollo

Finally, after killing his former Archery teacher Iphitus for not letting him marry his daughter, Hercules was afflicted with a terrible disease and sought out the Oracle of Delphi once again to get some advice on what to do. When he received no answer, he grabbed the tripod of the Oracle and would have broken it if Apollo hadn’t intervened; a fight broke out between the two and Zeus had to throw a thunderbolt from the top of Mount Olympus to break them up.

OlympusDAO community run media — by Ohmies, for Ohmies