Proposal to Re-supply and expand Olympus DAO bond program

Re-supply and expand Olympus DAO bond program proposal


This proposal is for the re-supply and expansion of the Olympus DAO Bond program. Given the success of the first 30 days this is a great opportunity to increase Inverse Finance DAO owned liquidity.


This proposal outlines a program for Inverse Finance to own its liquidity on AMMs. At the time this proposal is written, there is approximately $2.9M in liquidity for INV/DOLA on Sushi. Our first 30 days with the Olympus DAO Bond program was a huge success securing 846k in INV/DOLA liquidity now owned by the Inverse Finance treasury. Additionally we will be adding a second bond of DOLA-3pool to also be paid out in INV.


Implementing bonds reduces the need for INV incentives over time, which only create temporary liquidity and persistent sell pressure.

  • Currently Inverse Finance rewards 500 INV per month in SLP incentives and 600 INV per month in DOLA3-pool incentives . This is “renting liquidity” because as soon as the incentives disappear or are lowered, the LP’s will leave.
  • With a bond program Inverse Finance can provide a similar amount of INV per day to people who GIVE their LP tokens to the protocol permanently. This builds long term value and opens a path to reduce LP rewards to zero.


For those unfamiliar with the Olympus bond mechanism, the bond contract essentially sells a token (ex: INV) at a discount in the exchange for assets (ex: 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 is offering to provide its expertise in bond contract management to support other DAOs interested in owning their own liquidity. This will include providing the UI for bonds and maintaining bond control variables to balance emissions with liquidity accumulation. In exchange for the implementation and community engagement, Olympus would take 3.3% of all INV sold to back OHM tokens. This will align the success of our communities and allow for cross-DAO governance participation.

Inverse Finance’s bonds would 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.

Inverse Finance will be supplying 1,500 INV tokens for the DOLA-3pool, and 1,500 INV tokens for the INV-DOLA SLP bond contracts for a 30 day term.

Custom Treasury:


DOLA-3pool bonds

Principal token: 0xaa5a67c256e27a5d80712c51971408db3370927d


Principal token: 0x865377367054516e17014ccded1e7d814edc9ce4


Great proposal; let’s continue building up the DAO owned liquidity!

This is an important proposal - would like to see the # of INV increased to 4700 in order to give us additional time beyond 30 days. Thanks Karm!

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INV/DOLA LP Bond: 0x34eb308c932fe3bbda8716a1774ef01d302759d9
DOLA Bond: 0xdBfBb1140F8ba147ca4C8c27A2e576dfed0449BD
3pool Bond: 0x8E57A30A3616f65e7d14c264943e77e084Fddd25