gOHM-USD New SMART Alpha Pool

Summary

Create OlympusDAO gOHM-USD SMART Alpha (SA) pools on all networks gOHM is supported on and add them to the Barnbridge SMART Alpha website.

Description

Initiate gOHM-USD SMART Alpha pools for all networks gOHM is supported on—at the minimum Ethereum (if gOHM is released on Avalanche and Arbitrum, also create pools there as well). Then add the pools to the Barnbridge website for easier access. Finally, request the Olympus community to post an announcement of those pool’s existence in their Discord to attract OlympusDAO holders (ohmies) to them.

Motivation

A gOHM-USD pool would allow OlympusDAO holders (ohmies) to easily achieve gOHM downside protection or liquidation-free leverage while still exposing them to the high APY Olympus provides.

Additionally, this pool has the potential to attract significant amounts of liquidity and awareness of SMART Alpha from the Olympus community.

Technical details

My understanding is that the implementation requires a Chainlink price feed for gOHM. There is an OHM/ETH feed (OHM / ETH price today | Chainlink) which should give reliable gOHM prices assuming we can get the OHM index. Ideally, a gOHM price feed would exist in the future and we could switch that then.

There may be some challenges relaying the correct price of gOHM, but given that FIAT DAO has experience in showing pricing for wsOHM/gOHM I think that the team would be able to technically implement this.

Useful Links

OlympusDAO summary and docs: Introduction - Olympus

gOHM information: V2 Migration - Olympus

Argumentation

For:

-gOHM seniors can receive downside protection while still earning a portion of the generous OHM APY

-A lot of ohmies borrow against their OHM with over $1B of OHM provided as collateral—a potentially huge market for SA junior positions and with no liquidation risk compared to Rari and Abracadabra

-Technical knowledge from the FIAT DAO implementation should allow for the developers to more easily implement this pool in Barnbridge

-A lot of Barnbridge holders also hold sOHM (or wsOHM/gOHM)

Against:

-The gOHM contract is brand new and may require changes in the future

-Olympus is a still a new protocol so there are always risks of hacks, exploits, or other risks associated with newer cryptos

-Ohmies may not be comfortable with senior positions as they will lose a considerable amount of upside potentially resulting in a heavily junior pool or in the worst case no senior positions at all

Proposal on OlympusDAO
Also, @Mike987 worked on this as well so just giving credit to him as well:
https://forum.olympusdao.finance/d/460-gohm-smart-alpha-pool-feedback-requested

7 Likes

This is a no brainer. I’d recommend using OHM as the pricing oracle and accept gOHM deposits, just like we do for the xSUSHI and stkAAVE pools. This also means you could launch now with the OHM-ETH oracle.

4 Likes

Agree with @Mike987 – gOHM would be an excellent addition to SA.

I think this has the potential to grow into one of our larger pools and open up some very interesting options for our good friends, the ohmies.

Hi all! Thank you for taking time to comment and on the Olympus DAO forum: gOHM Smart Alpha Pool - Feedback Requested - OlympusDAOForum

Will try to move this forward into the next set of Barnbridge SA pools :slight_smile:

Would anyone be interesting in gOHM on an alternative network too since gOHM is cross chain?

Hey, thank you for putting up the proposal!

As you stated in the Technical details section, gOHM doesn’t have a reliable price feed. Although we have the OHM price feed, it might be too risky to use the OHM index value to calculate the price of gOHM ourselves and would require internal testing.

Considering the recent CMC price glitch, no one is insured against smth similar, and if that would be the case with our calculations (due to Olympus PRO current index lag or website outages or anything else) the SA pool could get really screwed.

We could reach out to Chainlink or/and Olympus team to find out is there any plans for the gOHM price feed in the near future.

Hello! Thank you for your reply! Since talking to folks, it appears that it would be more ideal to use a gOHM/USD pool, but instead use OHM as the price oracle. This way people who use the platform won’t lose assets to the staking APY.

However, since OHMv1 will be migrated to OHMv2 that might require a new Chainlink feed as the pricing of OHMv1 and v2 may vary. It might take a while before a Chainlink feed can be built because there’s not a ton of OHMv2 liquidity out there.

In the interim, I know the Olympus team has a The Graph endpoint that they use would should have the same data that’s shown on the Olympus site. Would that be an acceptable alternative? If not we may have to wait until a Chainlink feed can be created, but I’m not sure if that could take months or longer?

I think it makes sense to wait for the Chainlink feed

Does this feed not work? OHMv1 / ETH price today | Chainlink

We only need a feed for OHM and not gOHM since we’re measuring as OHM price changes but redistributing gOHM across the tranches. I think?

@Mike987 @ErinDana @pabless Hi all! There is now a Chainlink Feed for OHMv2 on both mainnet and Arbitrum (hooray!):

If it’s not too much trouble and there is support for this would we be able to set up gOHM-USD SA pools on Ethereum and Arbitrum? It’s important to note OHM price should be the one being watched, but gOHM should be the asset distributed across SA tranches. This minimizes loss due to the (generally) increasing price action of gOHM.

There’s still a huge community at Olympus and I think will help us generate revenue and provide protection and safe leverage to the ohmies.

I think using BarnBridge SA for leverage is also much safer option since there is no liquidation risk which hurt Olympus a lot (https://twitter.com/ohmzeus/status/1486886116598890498). Plus given the OHM price volatility, downside protection would definitely be nice for OHM holders.

3 Likes