Protocol Owned Liquidity - Bonding

I am proposing that we use part of the community fund to test out protocol owned liquidity through bonding on Olympus Pro.

We ask investors to provide us with 3CRV LP tokens, and in return we give them a discount on UST that compounds to a 22% APY (higher than anchor earn, and with more certainty). The community will then take that LP token and use it to bolster liquidity on Curve. We can try out bonding periods of 3 months, 6, months, 9 months, and 12 months.

This has a number of desirable affects…

  1. Terra will gain more liquidity to put on curve.
  2. We will engage a new investor set within the Terra ecosystem.
  3. Community funds will be more engaged with health of UST liquidity rather than solely relying on TFL and other benevolent whales.
  4. Establishing relationships with Olympus Pro will allow us to pursue other creative bonding solutions in the future if we need other crypto assets (CVX for LUNA for example).

Any thoughts on this or something similar?

I would say we wait to see how OlympusDAO fares thru this market down turn, and proves itself over time. Right now it’s not looking so great for the DeFi 2.0 Bonding / Rebasing DAOs.

I’d personally never bring anything to the Terra ecosystem that’s USDT based. Both Olympus’s model and USDT are scary for me. Also, if Tether ever collapses, UST should be the safe haven for stablecoins. In that case, we’ll never achieve this safe haven status if losing a big chunk of our assets overnight.

So no. Don’t trust Tether’s shady business.