TL;DR: O2DAO V2 aims to acquire governance powers of prominent OHM forks. Our treasury will diversify and O2ers can earn better staking rewards and have influence over the OHM(forks) ecosystem.
Since our launch few days ago, O2 DAO has acquired more than 16% of the total wsOHM supply on Avalanche. Not only that, we are also the top 2 holders by miles.
As Olympus DAO is transitioning to V2, wsOHM will be replaced with gOHM, which adds governance power to on top of the wrapped staked OHM token.
This is exciting news. In the near future, O2 holders will have the ability to create proposals, and submit changes to Olympus DAO through O2 DAO.
Originally, Olympus DAO was fully backed by DAI. Then it was also backed by another stable coin FRAX. Later, wETH and CVX were added in the treasury.
In Olympus’s vision, it’s important to decentralize its backing and maintain OHM’s purchasing power by including a bucket of DeFi assets. While we agree with that, it doesn’t feel right for us to include arbitrary assets, like AVAX and stable coins for the sake of adding bonds. The idea of O2 DAO is to maximize returns based on the fact that our underlying backing is earning staking rewards from staking OHM, while having our own staking rewards.
OHM Forks and Governance
As we (and Zeus) have said at very beginning, OHM forks are not only competing with each other, but also Olympus the mothership. They do not necessarily add values to Olympus because they are fighting over the same assets on different chains, which Olympus could do themselves as they are preparing to bring V2 cross chain. Admittedly, these forks have had their own success. Some even had the same level of treasury value of Olympus.
What if, O2 DAO adds OHM forks in its treasury? Not only will it allow us to diversify our backing, but it also allows us to acquire their voting power, just like what we did with OHM. It’s unlikely any of the existing OHM forks will add OHM in its treasury, so why not let us proxy the duty?
With the acquired voting powers, O2DAO will have the ability to coordinate ideas and proposals which improves OHM ecosystem as a whole.
In addition, adding a OHM fork will not have the same issue of adding assets that do not generate returns. In fact, most if not all of the prominent OHM forks have greater APY than Olympus.
The stars align.
O2DAO V2: OHM Hub and ETF
We call this new paradigm OHM Hub. We hope to resolve the on-going conflicts between OHM and forks, and bring a greater good to OHM(fork)ies.
Furthermore, with this new model, we are creating an ETF for OHM derived protocols. As a community member put it:
I genuinely like this project because rather than investing in OHM/TIME/SB and others this can be a one stop shop where you get the best of all and not only spread your risk but also increase your profits.
We will be implementing the following:
New Single(naked) Bond
We will begin experimenting the idea by adding wMEMO (wrapped staked TIME) of Wonderland.money as a bond. Wonderland.money is one of the most successful OHM forks with better returns on Avalanche.
New LP bond
We have received a tremendous amount of feedback that a lot of people were confused about the buying process. Currently, the only way to buy OTWO is to acquire wsOHM first. TraderJoe doesn’t auto route our trading pair so ordinary users will only see “Insufficient Liquidity” if they are not using the correct pair.
In addition, the wsOHM liquidity on Avalanche is still unsatisfactory. Even a mid-size swap will result in a non-negligible slippage.
To address this, we will add a OTWO-stable LP bond. This will be a temporary measure. We hope OIP-45: Proteus will truly address this by incentivizing gOHM(wsOHM) liquidity on Avalanche.
New Smart Contract for Vote Delegation
We will be making a smart contract for voting on Olympus DAO and forks. This will be a work in process because we are not sure how OHM will implement gOHM as well as the forks.
V1 is APY²; V2 is Governance²
OHM forks are still multiplying every day and there’s no sign of stopping. We hope this update brings something new to the scene.