🗳️ TDP 32 - Olympus Pro Bond Adjustments

Simple Summary

It is proposed to amend TDP 25 to change the token used to purchase MTA bonds from cvxmusd3crv to mUSD for the 2nd round of Olympus Pro bond issuance and beyond if required.

Abstract

When the LP token for the Olympus Pro Bonds was initially picked, we anticipated that owners of a Convex mUSD position would like an easy and simple exit out from the liquidity pair, and we wanted to enable the capture of this via the Olympus Pro bond program.

The first round of bonds have shown us that much more people were interested in purchasing bonds with easy to access collateral, so it is proposed to switch the LP token currently being used to buy MTA Bonds to mUSD to allow for easier entry into the bond program and give the treasury more flexibility on how to utilize this liquidity in the future via governance.

Motivation

A lot of feedback was received regarding the LP token used for Olympus Pro, and following the deposits made into the contract confirms that a simpler token for bonding is required to satisfy the usability of these bond purchases.

Specification

Proposed workflow

1.) The core contributor team will reach out to Olympus Pro and propose an amendment to change the token used for purchasing MTA bonds from cvxmusd3crv to mUSD for the 2nd round of bond issuance.

2.) In this effort, Olympus Pro will also change the maximum amount of mUSD that can be used to bond MTA in order to allow interested parties to purchase bigger bonds in one transaction.

Next Steps

Pending no significant changes to its content, this proposal will be taken to a Snapshot vote on Monday, the 20th December 2021 .

Voting will be open for a 5 days window to give adequate time for a concurrent discussion. Governors can change their vote at any time should the discussion sway their decision. We look forward to hearing what MTA token holders have to say and seeing how they cast their votes.

1 Like

I think it’s a great idea, mUSD as collateral will strongly increase accessibility to the Bonds

Do you think the nominal value of the bond (currently $9k) could be increased?
For this first round, whoever is keen to take an important MTA position has to do multiple bond purchases atm which is quite inefficient.

1 Like

I am for both of these changes. I think that increasing the maximum amount that can be purchased in one go may mean that the offering is fully purchased earlier, but I think the benefit to stakeholders who want to buy larger amounts of MTA outweighs the cost of having the offering finish sooner than initially suggested. Any idea what we’d increase the max number to @mZeroNine ?

I see the bond program as a success so far, and am bullish on it continuing into 2022!

2 Likes

Thanks @mZeroNine. I am supportive of both of these changes.

1 Like

Olympus Pro bond program has been great so far. This adjustment makes a lot of sense.

I will vote FOR.

1 Like

Great question! I think the Olympus Pro guys have special algorithms with which to calculate this stuff, but personally I’d love to see this number go to at least 25,000 mUSD worth of value.

Once the voting is completed, we’ll approach them and see what they recommend in terms of figures :sunglasses:

Makes a lot of sense. We could even do USDC or DAI then mint it into mUSD? Same impact and might be easier for people to participate

Also supportive of increasing max amount

Thanks for the positive feedback everyone. The voting for this TDP will go live in a little over 1 hour! :sunglasses:

@james.simpson I like the idea, but we’d loose the ability to increase the Save rate for users if we only bonded a simple stablecoin like DAI or USDC, so would argue mUSD is the better bet for the ecosystem, albeit we do once again add some complexity into the system.

Keen to hear if others have also strong feelings about this, since future bonding rounds are going to happen eventually down the line, and it’d be great to get as much feedback as possible.