Olympus Pro Bonds
“Olympus Pro is the new industry-standard platform to help protocols acquire their own liquidity. Protocols no longer need to pay out high incentives to rent liquidity, while also guaranteeing the permanence of liquidity to facilitate transactions.” -Olympus DAO
Olympus Pro allows users to buy discounted INV tokens in exchange for assets in a process called bonding. The bond contract essentially sells a token (ex: INV) at a discount in exchange for assets (e.g. INV/DOLA LP tokens). Bonds operate by initializing the price for LP tokens above market price and then applying a discount function that decrements price until a bond is purchased, which pushes the bond price back up. This mechanism allows the market to determine the optimal price for bonds. Olympus Pro takes a 3.3% fee for providing this bonding service to protocols such as Inverse Finance.
If you want to read more about Olympus Pro, you can read their documentation here.
Inverse Finance’s bonds will have a 7-day vesting period to ensure that discount buyers don’t immediately sell into the market. This helps align the goals of bond participants with the goals of the protocol. In addition to purchasing INV at a discount, bonders know that they are providing permanent liquidity to the Inverse Finance treasury. An additional benefit of bond programs is that they eliminate impermanent loss inherent in traditional liquidity mining and the discount is locked in at the point of purchase.
INV-DOLA is the main source of liquidity for the INV token, deepening this liquidity and stabilizing price fluctuations of the INV token makes it a stronger collateral asset. By purchasing INV-DOLA SLP from users the protocol is also obtaining DOLA, strengthening it’s peg and creating a superior stablecoin product.
DOLA bonds increase DOLA’s strength in the marketplace by allowing the protocol to own more DOLA. The bonded DOLA is used for protocol liquidity and to increase revenue-generating business operations, accruing to the Inverse treasury. The treasury revenue will be used in three primary ways: internal operations costs, reinvestment, and revenue sharing of DOLA to INV holders. The bonds currently come in three variants with 7, 14 and 28 days vesting
Deepening the liquidity of the DOLA-3pool is symbiotic to DOLA bonding. As the primary source of liquidity for DOLA it is essential we keep this pool liquid. By owning this liquidity we strengthen DOLA in the marketplace and ensure users will always have access to DOLA Swaps.
Users can monitor the DOLA bond ROI in the Olympus Pro marketplace and with the Inverse DAO Discord bot pictured below.
Last modified 4mo ago