Conduct token swap with OlympusDAO

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


I’ll let community members discuss this matter, I don’t have any opinions on treasury as it stands right now while we complete the Kanpai implementation in the coming months.

I would quickly add any token swap should be with vesting to align both sides.

OlympusDAO is a great project with a vibrant community that was launched and used Sushi from the start.

Adding a poll for the sentiment (I assume zeus doesn’t have the trust level to create one!)

  • FOR

0 voters


In favor.

I hold both sushi and ohm. Two of the best, most unique, and wholesome DeFi communities IMO. Forming a stronger bond through a treasury swap is a win/win.


Good proposal for future community strength. I agree with 0xMaki’s view as well, IMO both the treasuries should have respective tokens vested/locked by default. If/when they choose to sell some of the tokens, it should be through a governance vote.


Absolutely! What a great proposal.

This coming from die-hard (3,3)er alpha OHMie as well as a signer on Sushi’s multi-sig.


100% support this proposal! As 0xMaki said, vesting would be a good idea as well.

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Great proposal. This seems like a win-win & in alignment with cooperation yielding positive expected value results.


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May I ask what you foresee to be the synergy between the two protocols that makes sense for the protocols to do a token swap?

One that is obvious to me is that OHM will be used to bootstrap liquidity for new pairs on sushiswap.
OHM wants to be a reserve currency, Sushi is a marketplace, which is what a currency needs to work. Creating more OHM pairs on SUSHI gives its marketplace more liquidity which is what a healthy market needs. Synergy. This swap just solidifies this partnership.

Not really a strong case of synergy to justify a token swap. Many projects create pairs and bootstrap liquidity on sushiswap. If that was reason enough Sushi should be doing token swaps with every project listing pairs/bootstraping liquidity.

I am not against this idea in theory. But would like to hear a good justification for it.

PS I like OHM, and nothing against the protocol, also aware teams and even communities have good relations. But would like to ensure swap makes business sense for both parties.

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I can see OHMs bonds as a tool used to increase liquidity as well as create safer pools on Sushi. The OHM-DAI pool is the 13th largest pool on Sushi and is almost in complete ownership of the OHM treasury.
As OHM builds trust, other projects can secure their liquidity through OHM in this way. This benefits SUSHI because its pools become more secure and deeper. OHM wants Sushi to be the platform it provides this liquidity through. When OHM sells bonds Sushi wins, when Sushi earns fees OHM wins.

I think this token swap will incentivize both teams to help each other both directly and indirectly towards this goal.

It would be good to hear other benefits this swap could bring though.


So this is a thing that I’d like to hear more of. To me this has legs and makes sense, Something I’d like to dive deeper into. Appreciate your thoughts, would like to hear more from others as well if they can contribute to to how they foresee the synergy.


Adding some more detail to the original proposal:

We will include an 18 month mutual lockup, with the sole caveat that either party can utilize their tokens to create a liquidity pool (something that we may do, especially when the Trident multi-token AMM is live).

With regard to where the value of this swap lies, 0xplanet touches on it quite well. We intend to create many more pools than the current OHM-DAI. OHM-DAI should serve as a central liquidity depo around which we want to build a network of pairings. We, of course, intend to pursue these plans on Sushiswap. This swap will 1) provide us with (if/when it goes live) greater oSushi voting power which may prove important in bootstrapping new pools, 2) provide us with additional upside if we are successful in increasing TVL and volumes on the platform, and 3) greater incentivize the Sushi community to remain aligned and cooperative with us as we pursue that goal.

An additional benefit to the Sushi community is you all can be part of these decisions by utilizing the governance power that sOHM provides. This governance power could also be used down the line to, as an example, propose SUSHI or OHM-SUSHI bonds, which would have quite direct benefits.


Currently, if you want to increase your voting power I assume you needed to sell your OHM from the treasury and buy sushi. This puts sell pressure on your token and I gather you want to avoid this. As such you prefer to gather voting power through a token swap. But in doing so sushi loses the buy pressure that comes from a project which wants that increased voting power (seeing as OHM is forgoing buying sushi on the open market when we do the swap). To me, basically this nullifies one of the biggest benefits of sushi community voting for Osushi (the buy pressure on sushi).

That doesn’t necessarily mean it’s a bad deal for sushi but the additional benefits should be strong enough where it makes that loss worth it.

So far the benefits to sushi that seem to carry some weight imo:

  1. increased TVL
  2. increased Volume
  3. fees shared from bond sales with sushi (which will be an OHM holder) - assuming OHM has some fee sharing mechanism for its holders.

Is there anything else? If not then, I guess we have our pros and cons list here so people can make a decision.

PS please feel free to correct me if my understanding is wrong. I am not intimately familiar with OHM (outside of general overview) and still wrapping my head around this deal.


100% FOR - (sOHM, xSushi)

Hey frens, I am super excited about the collaboration between Sushi and Olympus. We want to work for the greater good of all of us. In that light I believe that “skin in the game” is making our bond just stronger and provides both projects with strong benefits in the future.

Towards the buy pressure issue, Olympus could just have launched a xSUSHI reserve bond to acquire governance rights to the extend of absurd amounts without asking anyone. We could have created this buy pressure without permission and mutual benefits. There are just a bunch of problems involved with that.

  • The first issue would be that buy pressure in that regard can be taken advantage of by anyone dumping xSUSHI to make a quick buck. Then all buy pressure is gone again without having achieved much for the greater good. In that case we would not owe you anything turning such an alternative reality just into a more adversarial environment.
  • Another problem would have been that it may look like a vampire attack or act of piracy which would make our efforts quickly appear to be vicious making the DeFi ecosystem once more an even more adversarial place.
  • And then, there would not be a mutually beneficial partnership that we both agree on in good faith. We value a lot how Sushi supported us from day one and so, not communicating would have come at the highest possible cost.

Moving forward we want to drive more value to Sushi because we think your community and your platform is one of the strongest partners we can have in DeFi. A mutually beneficial partnership caters immensely to our future vision and moving together towards this future in an open and transparent way while having skin in the game on both sides is honestly the best that could ever happen to the both of our projects. Now, moving forward we can still create buy pressure by creating reserve and liquidity bonds for Olympus and Sushi relevant trading pairs. With the DAO swap the both of us become more able to bootstrap and ensure such initiatives exactly because we share more voting rights. In short, this here is just the beginning of something really big.

Maybe another fun fact from the top of my head why synergy between the both of us can be very valuable in the future. Olympus bootstrapped Odyssey, an NFT ecosystem. Sushi’s Miso and Olympus’ Odyssey can drive value to one another in the future on the basis of good faith of the Sushi and Olympus partnership proposed here, bringing utility to our NFTs and our NFTs to your marketplace.


I’m interested in the topic, interested to see how something like this would work (i.e. the process), but I am not comfortable enough with treasuries and protocol token swaps to provide any opinion or insight on the matter.

Communities are strongly aligned so in that regard: YES - any additional collaboration is a net positive and I have confidence that this would make sense.

That said, I would like to know more about process and how it would work in detail.


Am in favour. Though first thought was that the price needed to more appreciate current evaluations.
Not to play the undervalued game.

At the weekly forum call, Zeus spoke about locking in liquidity, which is compromise I could support.

Deepening the cross-pollination between Sushi and other protocols, along with treasury diversification, is critical to the long-term viability of Sushi as a one-stop-shop DeFi marketplace. I am concerned, however, around OlympusDAO’s potential influence on Sushi liquidity acquisition efforts.

Case in point, I note that the existing OHM/DAI pool appears to be heavily incentivised relative to some other pools. My concern is that giving OlympusDAO more influence could potentially hamstring our ability to diversify our market place, potentially even restricting our ability to capture trading liquidity from people transitioning into the crypto market from CeFi (who may not know or trust OHM as a reserve asset).

I am cautiously in favour of this proposal, but I think we need to vote for this with both eyes open and our minds on our long-term growth avenues.

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