Summary: OlympusDAO proposes a token swap between OHM and SUSHI to further diversify our treasuries and strengthen our inter-protocol relationship.
Background: Olympus is currently the largest single liquidity provider on SushiSwap (as far as we can tell), with over $58m provided to the OHM-DAI pool. OHM-DAI is the 13th largest pool, and makes up 1.5%-4% daily platform volume on average.
SUSHI is currently the 6th largest holding in the Olympus treasury, with 49,000 xSUSHI acquired over the past 5 months through the Onsen reward program.This swap would have Olympus just shy of the top 25 holders of xSUSHI.
Abstract: We view SushiSwap as a valued infrastructural partner and, as an intended power user of new Trident features, want to deepen both our relationship and our exposure through a strategic token swap. This swap will provide Olympus with additional Sushi not acquired through Onsen, and give the Sushi community exposure to OHM beyond the passive fee revenue currently being contributed. The swap carries with it an expectation that neither side trades or reduces their exposure without a governance vote, which the other party can participate in through their respective holdings.
Motivation: Deepen bonds between our communities, diversify our treasuries, and provide governance power in each other’s protocols (which we intend to utilize for Onsen gauges when available).
Execution at current 30-day moving average prices with no discount.
OHM 30-Day MA = $345.78
SUSHI 30-Day MA = $11.58
$3,300,000 notional value, paid in xSUSHI and sOHM.
242,736 xSUSHI <> 9544 sOHM
For: Execute swap with OlympusDAO
Against: Do not execute swap with OlympusDAO