Initial Discord Offering: The Olympus Fair Launch Event

We want Olympus to be owned and run by its contributors. The strongest projects start with their supply in the hands of the community. But how do we start like this? We need to raise funds to back initial supply, which means the go-to of liquidity mining won’t work. We have to do a pre sale.

Tldr

  • There will be a presale offering from March 12th-March 14th
  • Only non-US persons who were in our discord before March 3rd will be eligible to participate
  • 50,000 OHM will be offered for sale
  • Participants can only purchase their prorated share
  • The offering price will be $4 per OHM
  • The pool will open at ~$8 with ~$300k liquidity
  • The initial system will have only staking and bonds (no sales/purchases)

If you’ve ever participated in a launch sale, you know that even the best setups can be gamed. There’s always a risk of bots and whales scooping up all of the supply before the little guys, generally the people who truly make the project successful, have a chance to get in.

We batted around a few ideas to mitigate this, but all of them still seemed too heavily skewed toward net worth. For our genesis supply, we don’t really care how much money you have. You can save that buying power for when we’re trading. What we want right now is a wide distribution among those who have taken interest and are ready to get involved.

So, we settled on a system I am quite excited about.

The Initial Discord Offering

If you were in our discord before March 3rd at 0300 UTC and you are not from the US, you are eligible to take part in the launch sale. All you need to do is send an Ethereum address to Zeus and you will be whitelisted. Addresses received will never be shared and I don’t care enough to keep tabs, but I encourage you to use a clean address. If this makes you uncomfortable, you can wait to buy anonymously once trading opens.

Address submissions will be taken until March 10th at 0300 UTC. After this point, the window has closed and even if you were in the discord before the 3rd you will not be whitelisted.

The initial supply of OHM will be 68,260. 50,000 will be offered to launch event participants, and 18,260 will be added as initial liquidity. 68,260 was chosen because it is Planck’s constant. If you are unfamiliar with the Uncertainty Principle and its’ application in finance, I suggest you do some research. I consider it quite relevant here.

Each participant can only buy their pro rata share of the offering. If 500 discord members are whitelisted, each one will be allocated 100 OHM. When you buy, you are removed from the whitelist; so, if some people buy less than their share, everyone who has not yet bought will get a higher allocation. We will announce the minimum when submissions have been tallied.

The launch sale will take place from March 12th at 0300 UTC to March 14th at 1500 UTC. You can buy OHM during this period if you have been whitelisted. The sale price is $4 per OLY. The funds will be used to back the OLY sold and provide initial liquidity.

If we are 100% subscribed, the sale will bring in $200k. $60,000 will be deposited to the treasury to back initial supply. The remaining $140,000 will be added as liquidity. The LP will open with 140,000 DAI and 10,000 OHM. This is a starting price of $14 and initial liquidity of $280,000.

Note: If the fact that we’re opening above $1 does not make sense to you, you do not understand this well enough. Please learn more or sit out for now.

Trading will open on March 14th at 1800 UTC.
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Initial Network State

This is a soft alpha launch. Not all functionality will be present from the start. The purpose of this event is to get supply into the hands of those who want it, build up liquidity, and allow for price discovery.

Only bonding will be active at launch. Protocol sales will be integrated after we have completed our audit. This is the highest risk component and we do not want to introduce it until we are certain that it is safe and secure.

The only real change without sales is the rate of supply expansion and the system’s level of profitability. Supply will expand at a lower rate and therefore staking will be less profitable. However, bonds should still provide plenty of yield, both for stakers and bonders, and having only this option should help us amass lots of locked liquidity. The constrained supply should also allow a sizeable premium to develop due to scarcity of supply and anticipation of future earnings once sales begin.

What will we do with the LP?

When we initialize the pool, we will receive back the SLP token. That SLP is technically worth ~$300k. However, the treasury will determine its risk-free value to be ~$105,000 (see the bond post). If deposited all at once, this would trigger a profit distribution of 94,500 OHM to stakers and 10,500 OHM to the DAO. Even if everyone from the launch sale staked immediately, the first rebase would be 181%.

Doing this in a lump sum would at best be a waste and at worst serve as fodder for a quick pump and dump. To avoid this, we will deposit the LP into a smart contract after initializing the pool. That contract will wait until 10 epochs have passed and then deposit 1/100 of the liquidity into the treasury each epoch. This should start us off with >100,000% staking APY for epoch 10 and help us maintain >1,000% APY in epochs 10–100.

Risks & Disclaimers

There are a few manual components to the launch event. If any of this makes you uncomfortable, please do not participate. It is ok if you wait until after the launch is complete and everything is locked in.

This system is experimental and high-risk. Please do not put in more money than you can afford to lose. I can only theorize and design, I do not know what this will look like in reality. At a bare minimum it should be fun, but it may not be profitable.

The whole system will not be live yet. Sales are an integral part of the long term functionality and success of the protocol. Understand that if something goes wrong, sales may never be integrated, and if all goes well they still may not behave as expected. Again, this system is experimental and high-risk. Nothing can be guaranteed.

There is more supply than liquidity. If everyone sells when trading opens and no external demand arrives, price may fall below the presale price or even below intrinsic value. The protocol will not assist with buybacks below intrinsic value until the contract is integrated after audit.

We have done thorough internal testing but there has been no official audit. We are scheduled with Peckshield for March 23rd. We will add market operations when that is complete. If this unaudited state is not alright with you, please wait until after.

Closing

We are excited about this method of launch, and we hope you are too. I think it is fair to say that those in our discord have been the most engaged thus far, and they should be rewarded for that. For everyone else, there will still be ~27% of supply in initial liquidity for you to buy.

Get excited! Olympus is almost here.

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