The Agora Dispatch — Weekly Newsletter — 1 February 2023
Welcome to the Agora Dispatch — news and views from around the econOHMy
Summary:
- Editorial —Steady as she goes
- Marco round-up
- Around the econOHMy
- RFC — New Council Framework
- TAP-20 — $33M FRAXbp deposit
- Wartull Thread — Inverse profits
- Q4 Report drops — Ah transparency
- Potted Thoughts — Visiting Family
Editorial —Steady as she goes
We saw another move up on the OHM front — now sitting at $10.08 with the lower cushion at $10.13.
If you bought OHM on 27 November 2022 you would have paid just $7.80 which is 23% below the current price without including rebasing.
What a marvelous asset.
Marco round-up
- 25bps is a lock for tomorrow's FOMC meeting — the question now is whether this is the last hike and then how long before we see cuts — the consensus is still 25bps tomorrow and 25 in March and then wait and see
- Goldman are expecting as much as 50bps cut in the second half of 2023 and more in 2024
- The curve ball in the puzzle could be an unexpected bout of deflation as trader Hal Press from North Rock Digital argued this week on Blockwork’s Empire podcast
- Meanwhile, we see China continuing to ease
Around the econOHMy
- Frax founder Sam Kazemian announced on the BlockCrunch podcast that the FRAX stablecoin will move to a fully backed model this year — doing away with the partial algorithmic backing with the FXS token. We could see an increase in Olympus’ appetite for the FRAX stable if this comes to fruition
- Jones DAO launches their jUSDC/jGLP product — with a whopping $12.5M locked out of the gate — well-done!
- The Redacted Cartel launched their GMX/GLP Pirex compounding product on Arbitrum
- We saw the first new OrionFi OHM fork is a straight copy pasta — not even bothering to change the Olympus docs — aaaand between writing this and publication time they rugged for $304K — discord and socials deleted
RFC — New DAO Council Framework
The DAO Council put forward a new mechanism for selecting and confirming its validity by OHM holders.
The new framework proposes that once a year in February, the holders take a vote of confidence in the Council. If the vote passes the Council continues. If the vote fails new elections from within the DAO are called and a new proposed Council is put forward to OHM holders to ratify — if not ratified the process continues until a new Council is accepted.
The Council will also reduce its size from 7 to 5 — losing Indigo and Zeus who will continue in the DAO without being on Council.
The Council will also have updated reporting requirements — reporting to the community every other month.
A Q&A with the Council on the proposed changes will happen in the Discord on Thursday 2nd February at 7 pm UTC.
Wartull Thread — Inverse profit
Wartull hit us up with some fresh knowledge on Twitter — setting out the benefits the inverse bonds have had on us, regular holders. We are better off by nearly $3M since the launch of RBS.
Pretty slick!
TAP-20 — FRAX to the Basepool
JaLa came from the heavens to drop this sorely needed proposal to deposit our idle $33M FRAX straight to the FRAXbasepool and earn the approx 4%apy on offer.
This one is a bit of a no-brainer in our opinion — the FRAXbp is effectively the DAI Saving Rate of FRAX.
The Frax Basepool is a pool on the Curve decentralized exchange that only contains FRAX-USDC. It is the main pool housing several hundred million dollars of Frax’s protocol-owned liquidity — if there is an exploit of this pool it will impact all FRAX holders. Given this, if we would otherwise just hold naked FRAX, the opportunity risk of deploying into the basepool is low.
It will also pull us in a cool $1.5M in value if we deposit the full amount — the vote is currently ongoing here.
Q4 Report Drops — Ah transparency
The Q4 Report was released late last week and it included much better data visualizations — thanks!
The most significant data in our opinion was how we tracked over the last quarter — this saw the DAO keep within a healthy outflow range of about $1.2M.
Among other interesting data was the Policy team update which included a table setting out the recent OHM bond returns. Will be keen to see a more detailed analysis in the near future.
Potted Thoughts — Visiting Family
A man once returned to the family of his childhood for a yearly holiday weekend of eating, drinking, and celebrating. Those attending knew this man from his youth and had watched him grow up.
He arrived and went to his grandfather who said to him “When you were young, you wanted to be a police officer. How sad for you that you never became one.” The man took a breath and explained to his grandfather that he had exceeded his dream and was a member of the special forces where he had received numerous medals for bravery. His grandfather shook his head and said “You’re not a police officer. How sad.”
Next visit was with his aunt who said to him “When you were young, you were so much more fun. You stayed up late drinking and dancing and you did extreme sports.” The man took a breath and explained to his aunt that the abundance of energy he had when he was young no longer needed to be burned off with wild activities but he still had the same spirit of adventure. His aunt shook her head and said “You’re not fun anymore. How sad.”
Dispirited, he walked over to his cousin, hoping to find a more comfortable conversation. But his cousin said to him “When you were young, people said you were taking steroids and that’s how you did so well in sports.” The man took a breath and explained to his cousin that the type of steroids he had been taking were for a skin condition and are different from anabolic steroids, which are performance enhancing. His cousin shook his head and said “Then why are they the same word? How sad.”
Looking for a more neutral party, the man struck up a conversation with his sister-in-law. Unfortunately, she turned to him and said “My husband has gone bald and it all started the first time I met you.” The man took a breath and explained to his sister-in-law that hair loss is genetic. His sister-in-law shook her head and said “He had perfect hair when I first met you. How sad.”
Till next week Ohmies!
