Olympus Pro x Unslashed Finance kick-off

I am personally beyond excited that Unslashed Finance is finally an Olympus Pro partner along some great projects in this 4th cohort!

This is the result of a few months of relentless work conducted by @Mainbrain with contributions from several community members (special mentions to @franklin, @TaeKwonKrypto and @arzra!) and a smooth collaboration with the Olympus Team!

Joining the Olympus program means we will be in a position to have the protocol own the USF/ETH liquidity, which also means that the total USF token emissions and inflation will be reduced significantly: about 40%+ reduction!

This is a great news on multiple levels:

  1. It allows to protect the DAO Treasury
  2. It aligns interests and allows the DAO to gain new revenue streams
  3. It strengthens the partnership we put in place with the OlympusDAO to provide them with an insurance policy

The next step is to have a community controlled multisig set up in order to manage the SC deployments and launch the program. The multisig will be ideally a 4/6 with active community members and some Unslashed partners as signers.

The official launch date for the USF bond was scheduled for Friday this week with the Olympus team so we will probably need to have a 24 hours period to let interested parties nominate themselves then have governance vote for the ones they want to see as signers.

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The next step is to have a community controlled multisig set up in order to manage the SC deployments and launch the program. The multisig will be ideally a 4/6 with active community members and some Unslashed partners as signers.

I volunteer myself as tribute!

I’ll expand a bit for added context. During some of the discussions with Olympus, Olympus had requested that certain things be changed on USFs end to standardize and match up to their existing processes. In order for USF to do that, they need to setup a multisig and long story short, this is how this new proposal came to be.

As a reminder, Olympus Pro Bonds has been discussed here and here as well as on discord, but its a lot to read, so i’ll provide a recap.

In its most basic form, Olympus Pro bonds is designed to pay out USF in return for ETH + USF LP tokens. This is because, Olympus has designed a mechanism that is built around giving end users a discount (more USF) in exchange for LP tokens.

Two questions should pop into your mind after reading the above.

  1. What does Unslashed have to gain from this?
  2. What do users have to gain from this?

1 - Unslashed gains Liquidity Provider (LP) positions, where consist of Ethereum + USF tokens. This translates into USF owning the uniswap market, otherwise known as Protocol Controlled Liquidity or Protocol Owned Liquidity.
2 - Users will see that they can trade their Uniswap LP positions and make a profit. Depending on what the ratio is, determines the profit. meaning if you trade $9.5k LP position for $10k USF, you made $500 on the swap. How much profit you make is determined by how much the last few traders swapped. By default, its designed to slowly increase the reward for users. So lets say its at 3% bonus at 4pm, it might be 5% at 8pm and it will slowly keep going up until someone takes it, in which the counter resets to a lower number depending on how much was purchased.
2a - Once this goes live, USF is expecting to shut off liquidity mining incentives, which will push those users into giving up their positions into one last hurrah.
2b - By shutting off mining, you dramatically lower the mercenary capital who was farming and dumping every epoch. This becomes a huge win for hodlers of USF.

Why wouldnt users just keep the LP tokens forever?
Nothing is stopping them from doing so. But if you had an opportunity where you knew you could trade $10k of your LP position for $11k of USF, you’d probably take it since that would mean a month or two of farming rewards normally.

A future question once its live is the approximate point at where we as a community will stop offering USF in return for LP positions. But thats an issue for later. Right now, we need to focus on this proposal of finding volunteers for the multisig.

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congratulations and put me to work!

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Hey guys, Mona from Enzyme here. Great to see the progress here :slight_smile: I’d be happy to nominate myself for the multi-sig!

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Franklin here. Great to see this initiative kick off and would be happy to be a signer for the multisig

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Hey Mounir founder of ParaSwap here, I would be happy to nominate myself for the multisig!

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