1hive to Diversify/Build it's Reserve

If 1hive decided to use olympusPro to buy some liquidity in exchange for honey at a discount.

The OlympusPro mechanism uses a Dutch Auction style set price for the discount. The user, 1hive in this case, holds full custody of assets being deposited and can remove at any time. 1hive would select the asset it wants exchange for honey at a discount decided by the community. 1hive also decides the length that the honey is vested so you could in theory require a year vested period (released linearly). This of course could result in significant discounts but may also ensure only true long term investors are taking advantage of this, Lastly if 100 HNY is deposited and used by the bond incentive 3.3% or 3.3 HNY goes to Olympus Pro DAO. Learn more here

Olympus Pro is not on xDAI. I had a call with them discussing deploying on xdai and in order for Olympus to prioritize xdai they need ~4 projects deploying at the same time. I think this is possible

What asset should1hive add to its reserve?
  • Single Token such as wETH, xDAI, etc
  • An LP such as wETH-HNY, wETH-xDAI, USDC-xDAI
  • An Interest bearing token from agave such as agWETH
  • Other

0 voters

Should we try this / How much to test this idea with?
  • 50 HNY /mo for 2 month trial
  • 100 HNY /mo for 2 month trial
  • No don’t do this 0 HNY
  • More

0 voters

How long should the vesting period be (when user can fully redeem the HNY)
  • default 7 days
  • 30 days (we could see large discounts but it might incentivize only holders to buy)
  • 120 days (we could see large discounts but it might incentivize only holders to buy)
  • Longer (we could see large discounts but it might incentivize only holders to buy)

0 voters

9 Likes

For people who may not understand the olympus pro system. this video does a great breakdown into understanding the product. Olympus DAO: Innovative app or a bubble ready to burst? - YouTube

2 Likes

Olympus DAO OHM is not long term sustainable (and that is my nice way of putting this). If supporting this means supporting Olympus DAO I am completely against this. Take HNY and invest in liquidity pools yes, but don’t put it in Olympus anything.

I honestly would say put LP in the Symmetric pools as those will earn 1%/week and Symmetric is far more sustainable project to earn return from than Olympus or Olympus Pro…

2 Likes

This has very little to do with Olympus DAO. It is simply using a protocol that allows you to exchange 1 asset for HNY at a discount with a predefined vesting period.

Out of ethical practice we are not forking the protocol but using their protocol which means we are giving them 3.3% and in return they set up the frontend and contracts for us which arguably may result in some mild exposure outside of xdai and 1hive. For the work at 200HNY that is only 6.6HNY, I don’t know that we could pay someone that little to do this in house.

Not a bad idea to propose 1hive have the asset being exchanged for honey be an LP on symmetry but I thought this would be asking a lot in 1 proposal and maybe as a separate proposal we could move the LP over to symmetry if we wanted to acquire more assets. It does look like the majority are voting for some kind of LP to acquire.

Given the majority requested LP, which LP should we go with?
  • wETH-xDAI
  • xDAI-USDC
  • HNY-xDAI
  • HNY-wETH
  • other

0 voters

Which dex should we use?
  • Honeyswap
  • Symmetry (we could accumulate Symm reward)
  • Other (swpr, sushiswap, curve if stable pair 20% APY rn, etc.)

0 voters

3 Likes

Yeah still mixed on giving Olympus anything here. I do not believe that project is sustainable at all and paying them to port to xDAI is basically setting everyone on xDAI up for the pump and inevitable dump from that project.

As to what LPs you have to decide which project to farm.

Symmetric is going to pay the highest returns in the
SYMM-stable (or other) pairs. xDAI-USDC on symmetric isn’t going to earn much return but it is ‘stable’ value.

wETH-xDAI will have IL but basically invests in ETH (L1) and will earn decently in Symmetric (1%/week give to take depending on SYMM price even at current 6.5 it is around .8%/week)).

As to which exchange. I have LP across the board, sushi, honeyswap, and symmetric. returns vary from 20% to as high as 180% (Celo wETH-cEUR pair) but I expect the high side of these to trend down with 20-40% being the rough sustainable point (if you can call what happens there ‘sustainable’).

2 Likes

True to what you said Olympus isn’t a sustainable project… but I believe we can go on with the testing…

Can you go into more detail on what you think is unsustainable about Olympus? My understanding of Olympus Pro doesn’t involve 1Hive taking on any OHM price risk. Is there any issue with how bonding system itself works?

I broadly like the idea of 1Hive holding LPs for key pairs, and also for partner pairs like with Shapeshift, and then using those to generate stables which would eventually fund proposals alongside HNY.

4 Likes

I’ll watch the video, and maybe I misread, but I thought I saw something about paying someone to use their protocol so that 1Hive could buy Honey at a discount?

1 Like