CVI x Olympus Pro AMA Recap

10 min readFeb 28, 2022

The AMA was held in the CVI Discord server on February 28nd, at 2pm UTC.

We were honored to host the Olympus Pro team for an amazing AMA.
The community asked us amazing and very interesting questions, which our team and the Olympus Pro team, were more than happy to answer.

Bar:

this AMA is aimed to answer and clarify all your questions in relation to our upcoming vote regarding implementing the Olympus Pro Bonding Program

So, before we begin, and for all the new members of this channel. Yoni, Could you please explain what is the purpose of this partnership, and what CVI is trying to achieve with this proposal?

Yoni CVI:

Sure. The goal of CVI with the Olympus Pro partnership is to implement a bond program for the GOVI DAO to own its liquidity.

The program would be implemented for the GOVI-ETH liquidity pools in different networks.

Instead of staking the LP (liquidity provider) tokens for farming and getting rewards, users can exchange their LP tokens through the Olympus Pro platform for the protocol’s governance tokens at a discounted rate. This is done through a process called “Bonding”.

Bar CVI:

Interesting, thanks.

We will be hosting today @bigfishjoe , Head of Olympus Pro Program and Partnerships and Partner Sucess, and @tex @devoltaire , General Manager and Head of Product. Guys, feel free to introduce yourselves to the community!

Bigfishjoe:

Hi everyone! Thanks so much for having us, we are very excited to begin the CVI & Olympus Pro Partnership. My name is Joe — as mentioned I am a Partnerships & Partner Success lead at Olympus Pro. My background is in engineering and B2B Tech Business Development and I’ve been at Olympus DAO for 6+ months now working with our 50+ Partners and growing. @devoltaire want to do a quick intro?

Devoltaire:

Hi ! I run the onboarding program so most protocols would be receiving communication from me initially and also I handled most of the queries. My background is in Investment Banking and have been in the DAO since last Oct, working in Partnerships and Incubator.

Bar CVI:

Thanks, it’s a real pleasure to be hosting you 🙂

Could you please give an overview of what is Olympus Pro to our community?

Bigfishjoe:

Sure thing! Taking a step back and more broadly about Olympus DAO — we are a DAO seeking to make $OHM the reserve currency of DeFi (decentralized finance). More details on $OHM here. But in order to create ubiquity of our currency and amass a treasury to back $OHM, Olympus DAO created its novel “bonding mechanism” about a year ago. Through bonding, our community would provide principal assets (DAI, ETH, OHM-DAI/OHM-ETH LP) in exchange for dynamically discounted OHM. This allowed Olympus DAO to own its own liquidity and reap a number of benefits which I’ll discuss later. Around August, we decided to offer bonds-as-a-service (a Dao-to-DAO, or B2B type offering) to Partners who were also looking to acquire their own liquidity or Strategic Assets. Olympus Pro is our Marketplace that hosts partner bond contracts where LP’s and community members can choose from any number of Partner bonds.

Details on Ohm → https://www.olympusdao.finance/

Bar CVI:

Very interesting protocol indeed!

We understand you have huge plans for the future, can you maybe share with us your next steps?

Bigfishjoe:

Yes! Absolutely. Specific to Olympus Pro, we’re focusing on two core concepts. The first is Permissionless Olympus Pro. Currently all Partner bonding programs are hosted on the Olympus Pro marketplace (https://pro.olympusdao.finance/#/bond). Through Permissionless OP, our Partners will be able to create, deploy, and host their own bond program within their core products and apps without the involvement of our team (though we will of course help with guidance). The second concept we’ll be focusing on is Tokenomics Consulting and Partner Success. Bonding programs aren’t a silver bullet to solve all liquidity needs, and they have to be implemented correctly. So we’re being much more hands-on with partners providing guidance, support, and advice on how to optimize their tokenomics (inclusive of bonding program)

Olympus Pro — Bond marketplace for protocol owned liquidity

Explore a new way to invest in the future of your favourite protocol

Ah third one too — more chains! We currently support ETH mainnet, Polygon, Avalanche, Arbitrum, Fantom but will soon roll out Optimism, other L2’s, Terra and Solana

for Olympus Pro

Bar CVI:

Wow.. very interesting!!!

And Last question before moving into our CVI >< Olympus Pro partnership — Could you please explain the Olympus Pro tokenomics? 🔥

Bigfishjoe:

Absolutely. From the context of $OHM tokenomics, Olympus Pro fees from Partners are taken into the Olympus treasury and used to back emission of $OHM. Olympus will not sell Partner assets from our treasury. Within the context of GOVI and the CVI Partnership, CVI will allocate GOVI emissions to reward bonders providing GOVI-WETH LP Tokens (down the road, potentially other principal assets as well). Bonders will see a dynamically calculated ROI on Olympus Pro for GOVI-WETH and other bonds , and receive GOVI as payout vested linearly over 7 days at the displayed ROI/discount.

^vesting period flexible and TBD, but 7 days generally recommended

Bar CVI:

Beautiful!

Entering now to the CVI >< Olympus Pro proposal that will be put to vote later today, could you please explain to the CVI community what is the Olympus Pro Bonding Program?

Bigfishjoe:

Sure thing. Olympus Pro (https://pro.olympusdao.finance/#/bond) offers Olympus DAO’s “bonding” mechanism as a service to Partners to secure protocol owned liquidity (POL). Through a bonding program, Partners purchase liquidity (commonly LP tokens, but can be any strategic treasury asset) from community members and liquidity providers. In exchange, the bonder receives a payout asset (Partner governance token) at a discount, vested linearly over the payout period. The discount and bonding ROI is determined dynamically based on market price, outstanding debt (bond demand) and time decay. 8–10% discounts are the benchmark that we set for Partners and we monitor Partners’ bond programs to ensure that there is healthy activity, community awareness and reasonable discounts.

CVI is always in control of the funds and not Olympus

and CVI owns the contracts that we create and provide

and then hands over to CVI multisig who will then take over

Bar CVI:

Great answer! 🔥 🔥 🔥

Kind of following what you mentioned above, why CVI is collaborating with Olympus pro? In your opinion how will the bonding program help the CVI and the GOVI token?

Bigfishjoe:

Great question. Through owning additional liquidity through a bonding program, the CVI community can reap benefits such as:

● Permanent liquidity/DAO control over GOVI liquidity

● Reduction in Token incentives on key GOVI pairs (inflation control)

● Trading fee accumulation

● CVI treasury accrues its own LP incentives

● Mitigation of mercenary capital taking advantage of GOVI liquidity mining program

devoltaire:

so in times of distress, the liquidity is still there since the protocol now owns it

Bigfishjoe:

As I mentioned earlier — Olympus Pro and POL are part of a holistic Tokenomics strategy and aren’t a “set and forget” silver bullet to increase GOVI token price. In addition to the core bonding program (contracts provided to CVI, onboarding onto the Olympus Pro Marketplace), Olympus Pro is also proposing a Tokenomics Consulting offering to provide dedicated resources and to ensure the success of CVI’s bonding program. Through this offering, if agreed to, Olympus Pro will provide these deliverables:

● Token Incentives & Liquidity Analysis (Audit)

● GOVI Liquidity Mining Roadmap & Recommendations (0–45 day)

● Audited smart contracts & hosted bond on OP Marketplace

● Onboarding guides & knowledge transfer

● Community educational seminar & AMA

● Bond alerts via Bond Bot

● Bi-weekly bond audits

● GOVI Liquidity Mining Roadmap & Recommendations (45–90 day)

● Weekly Business Reviews

Bar CVI:

That’s actually pretty amazing!

What will I get if I provide liquidity and bond my GOVI-ETH LP Token?

Bigfishjoe:

Bonding GOVI-ETH on the Olympus Pro Marketplace will provide GOVI as a payout asset, at an ROI determined by Olympus DAO’s dynamic pricing mechanism. Details on how ROI is calculated can be found here: https://docs.olympusdao.finance/pro/olympus-pro-users/other-frequently-asked-questions#how-is-the-bond-price-discount-determined. As mentioned above, we target 8–10% discount/ROI for bonds, though it can drift higher based on outstanding debt/demand, market price and time decay. Implementing our bond bot will alert the CVI community of ROI in real-time in Discord.

Bonders will need GOVI-ETH to exchange for GOVI and gas to cover necessary transactions.

Make sure also that when you bond, the ROI is positive! In times of high demand, outstanding debt to bonders can cause ROI to drift “negative” into a premium. If that happens, you’ll just need to wait a bit for it to return positive. You can in theory bond with negative ROI but then you end up paying a premium…we provide notifications to let you know of this

Bar CVI:

I see.. Very interesting 🧐

When do I get my GOVI reward for bonding?📖 📕 📚

Bigfishjoe:

Bonds vest linearly over a 7 day payout period (or a payout period that CVI and Olympus Pro agree to), and can be claimed at any point during that period from the Olympus Pro Marketplace. GOVI will remain for bonders until claimed. Once GOVI is claimed, bonders are free to do whatever they please with it (LP → re-bond, stake, hold, sell).

Bar CVI:

Is everyone able to purchase bonds?

Bigfishjoe:

Yes, provided they have GOVI-ETH to purchase a bond and gas to pay for the transactions. Bonders need to understand that gas cost can impact ROI. Please account for three transactions: (1) approval for GOVI-ETH, (2) Depositing GOVI-ETH, (3+) claiming GOVI after vesting.

Bar CVI:

Thanks for answering our questions, this is really interesting. Now we are going to open the chat to let our community ask some more questions.

There you go!

fireflight:

Will there be a correlation on the bonded tokens with the $OHM token? Meaning, is there any risk for GOVI if the OHM price (and thus the Olympus treasury) would crash? Or is it completely uncorrelated?

devoltaire:

It is completely unrelated if you are not bonding to OHM

Rasatsu:

Is there any mechanism for unwinding an Olympus Pro liquidity pool if the requirements of the project change?

bigfishjoe:

Yes. Bonding programs will last a minimum of 30 days, during which we are monitoring and analyzing bonding activity. After the initial bonding program, Partners can choose to pause the program or adjust their emissions/POL targets (decrease emissions, increase) OR launch new bonds.

Yaarforever:

What does it mean negative ROI?

bigfishjoe:

https://docs.olympusdao.finance/pro/olympus-pro-users/other-frequently-asked-questions#why-is-the-bond-roi-negative From our docs → At times, you’ll see that the bond discount turns negative, meaning you’d pay a premium from the market in order to bond. You should not bond during this time, as you can buy the same tokens but at a cheaper price from the market. As time goes on, the discount will slowly increase, until it reaches a positive discount again. The negative discount can be caused by different factors:

High demands for bonds: Bonds offer users the ability to purchase tokens at a market discount. However, this price is dependent on the demands of bonds. When there is a high demand, the bond price goes up, and vice versa. The demand may be so high that it may cause the bond price to inflate above the market price.

Sharp decreases in price: At times, when a token experiences a sharp decrease in price, it takes time for the bond price to decrease to match the new token price. This causes a temporary negative discount, until the bond price matches the market value again.

CoNoonti:

I have my GOVI on polygon.. how do i bond?

Bigfishjoe:

Bonds haven’t launched yet for GOVI, we still need to pass governance with your community after which we’ll plan the official launch date. There should be announcements to let you know when that will be (we can launch w/in 24 hours)

Then they’ll be on the Olympus Pro marketplace

fireflight:

So how would the bonding process work? I still need to provide liquidity on an exchange (ex. uniswap) so I get my LP tokens and then use those LP tokens to bond it through the Olympus platform? And will I be able to withdraw the LP token again to get back my liquidity (with some possible impermanent loss)? Or do we generate the liquidity pair (and thus the LP tokens) directly on the olympus platform?

devoltaire:

You can think of it this way > you buy the LP token, then provide it and wait say 7 days and receive discounted $GOVI in exchange

bigfishjoe:

^Adding onto devoltaire’s point — you are providing the LP tokens to CVI in exchange for GOVI at a discount. CVI is effectively buying your LP from you. So you don’t withdraw the LP tokens; you claim GOVI in return for them.

rasatsu:

What is the mechanism that disincentivize people from getting more GOVI-ETH LP to bond for discounts after the program is active?

devoltaire:

the bond pricing is dynamic in that it is demand driven. if too many people buys the bond, the ROI/ discount will drop until it becomes negative

Bar CVI:

Thank you very much guys for joining us for this great AMA!

And for providing such important and useful information

And the voting has officially started https://vote.cvi.finance/#/ 🔥

more info: https://cviofficial.medium.com/cvi-launches-govi-vote-for-olympus-pro-bond-program-232b28f701bf

For all of our updates and to join the conversation, be sure to check out CVI channels:

Website: https://cvi.finance

Whitepaper: https://cvi.finance/files/cvi-white-paper.pdf