[Passed] Olympus & Vesta Partnership Formalisation

Partnership
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Summary

This proposal aims to outline the relationship between Olympus DAO and Vesta and a potential token swap to formalize the partnership.

Olympus aims to be the future Decentralized Reserve Currency, a community-owned, decentralized, and censorship-resistant reserve currency that is asset-backed, deeply liquid, and widely used across Web3. Vesta sees a bright future in this vision and believes that our current alignment could be expanded to continue to enable utility and efficiency on gOHM and the ecosystem.

Motivation

OlympusDAO has supported Vesta since the beginning of the protocol, with gOHM remaining the major backing token of $VST at the time of this proposal. In the initial tokenomics proposal for Vesta, a total 6% ownership of OlympusDAO was outlined. Given the market development and level of support provided, both Vesta and the OlympusDAO team propose to the community an adjustment of these terms.

Proposal for Partnership

To formalize the partnership, Vesta and Olympus propose $250,000 USD worth of $gOHM at a 30-day TWAP at the time of transfer for 1,000,000 $VSTA at $0.25 USD, which was the price for the angel round—resulting in Olympus owning a total of 1% of $VSTA’s total supply.

To support Vesta’s ongoing governance initiatives, Olympus will participate in Vesta’s governance program. Furthermore, Vesta will also actively participate in governance and collaborate with Olympus on deploying more productive positions for both parties when such an opportunity arises on Arbitrum and elsewhere.

Feedback Period

The Curia vote + feedback process has ended. The Snapshot vote is has started Aug 4, 2022, 1:00 PM PT and will go on for 72 hours, ending on Aug 7, 2022, 1:00 PM PT.

UPDATE 08.08.2022: The Proposal has passed for an Unvested Token Swap. Please see the result here on Snapshot.

  • For: Token swap will be executed within 30 days if this proposal is accepted.
  • Against: Token swap will not be executed and renegotiated if this proposal is rejected.

0 voters

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this is a pretty sweet deal in favor of Olympus imo, i am happy to give them this deal but i do think there should be certain measures in place so that the olympus dao wont propose and vote to dump this as soon as price goes up

i would propose to implement in the agreement a 4year period before they can make proposals to sell any tokens

3 Likes
3

A few questions:

  1. OlympusDAO’s initial allocation is 6%. It’s now 1%. What was the reason for the reduction?
  2. What will happen to the 5% that OlympusDAO has given up?
  3. Will they still be subjected to a 6 month cliff, starting from when they first acquire the tokens? Or will they be free to sell at any time?
  4. Likewise, will the gOHM provided to us come with any vesting schedule barring Vesta from selling?
2 Likes
4

Thank for going over the RFC!

  1. The main reason for the reductions is that not all deliverables from Olympus side were kept, and therefore, a more healthy distribution was achieved with this proposal.
  2. The 5% of the remaining Tokens will be moved into the reserve for Strategic Raises and Partnerships in the Future.
  3. They would be subject to the same Vesting terms as the other Strategic Partners - so the six months cliff started from the TGE - since they have also supported Vesta since pre-launch. On the selling possibility - it’s nothing we can control - with Olympus, we have a strong partner who is highly aligned.
  4. On the gOHM side - there are much more attractive initiatives Vesta can partake of (such as Flex Debt) than selling.
1 Like
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To add onto what Semidio mentioned, here’s a proposed vesting schedule:

  • $VSTA 6 Months from TGE - linear over 18 months
  • $gOHM with a 30 Days TWAP to the first Vesting Date (9th of August 2022) linear over 18 months
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To align with Olympus on this token swap - I’d like to propose removing the vesting for both parties for the following reasons:

  • It increases the circulating supply of $VSTA

  • Olympus and Vesta can commit not to utilize the tokens swapped for financial purposes but solely for governance purposes and commit to holding it for a minimum of 2 years

  • The unvested gOHM enables Vesta to utilize the full spectrum of offerings of Olympus, including Flex Loans, allowing Vesta to borrow OHM at 100% LTV against gOHM and use it to create a new LP (e.g. OHM/VSTA).

Downsides:

  • Taking out vesting would expose both parties to tokens potentially being sold, but we believe that both parties would act with the highest integrity and uphold the promise, all the while taking advantage of the said benefits of having the token in unvested manner
1 Like
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Sounds good to me. I believe both protocols will act in their mutual best interest and when staking goes live, Olympus will able to generate revenue for their treasury. As for the OHM/VSTA pair, may I suggest making the pool on Sushi and asking for $SUSHI rewards.

1 Like
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Removing the vesting period would be advantageous to us. No reason to disagree. However, may i propose that the pair be gOHM/VSTA instead of OHM/VSTA? What you pair your token against is highly important. If your major LP pair is OHM/VSTA, and OHM underperforms, then VSTA price will still be dragged down even if not a single person is selling VSTA.

OHM is a highly dilutive token. It’s not suitable to be used in an LP pair and would be a drag on VSTA pricing. gOHM would be much better for the purpose of LP.

2 Likes
9

You are asuming things that are not true. I think that you dont understand what is Mint and Sync. It is the same as pairing with gohm. For the deal I think is huge deal for us. We recieve 250k$ worth of gohm that is even backed by more dollars. That is free 500k$ worth of POL liquidity that we Wont need to incentivice and could pull at any moment if sth goes wrong. Thats nearly all the liquidity we now have but will be POL and we could reduce our expenses on the eth lp (at the moment 356k$ worth of vsta). In terms of being paired with ohm(with M&S) we assume there is a close floor on price as they would buy back if neeeded as much as market participants want, though if ohm achieves being relatively stable and having slow growth with coming implementation price of vsta perform well if there is no bids and asks. Id rather have right know an ohm(M&S) pair than eth pair, as Arcrenciel explain our price action will be affected depending what are the depth and the pairs of our pools. The downside giving VSTA tokens, which ohm is not going to dump so it will help increasing FDV and circulating tokens. Another main one is ohm liquidity right now only on mainnet and gohm arbitrum lp only poorly incentivice so something important to consider. Do we want an lp in mainnet and keep our eth lp on arbitrum or are we are looking for full arbitrum liquidity.

1 Like