We are pleased to announce the official launch of the OHM-FRAX pool, as part of a partnership between OlympusDAO and FRAX Finance. Read on to learn more about what we are doing and why we are so excited.
What are we doing
Olympus and Frax are partnering for a dual-incentivized liquidity pool on Uniswap. That pool will consist of OHM and FRAX, and will be incentivized by OHM and FXS. You can find the portal to stake OHM-FRAX LP here.
Starting on Friday, Olympus will begin accumulating this pool through OHM-FRAX bonds. We will offer OHM at a discount in exchange for ownership of the pool. Our expectation and goal is that we accumulate a majority share, and continue to build up more and more liquidity, just as we have done with OHM-DAI.
Over time, Frax also plans to accumulate OHM by purchasing OHM-FRAX bonds. We believe this is the first case of a treasury-to-treasury operation in DeFi. This is an exciting way for Frax to both build exposure to OHM and increase its own liquidity. This also opens up new possibilities that we are excited to explore in the future.
Why we are doing it
Olympus and Frax are both collaborative projects building exciting products in the decentralized currency space. There are strong synergies between our projects that, if harnessed, can mutually accelerate our growth. We feel that this is only the first step in a long lasting mutually beneficial relationship.
In the case of Olympus, we can offer demand and increased liquidity for FRAX. Through bonds, we can continually grow the OHM-FRAX pool, creating a supply sink for FRAX and offering greater utility through a new offering.
In the case of Frax, they can offer demand and increased liquidity for OHM. Through treasury AMOs, they can divert new FRAX into the OHM-FRAX pool and use that LP to bond. This will thicken the pair and strengthen their market, as well as add new exposure to their balance sheet. We hope to see this assist as they safely reduce FRAX collateralization over time.
When is this happening
The OHM-FRAX pair launches today, June 9th. You can add liquidity on Uniswap here.
Incentives for OHM-FRAX launch today, June 9th, at 7 pm PST. 45 OHM and 2000 FXS will be distributed to LP stakers each day. You can stake your OHM-FRAX LP here.
Bonds for OHM-FRAX will launch Friday, June 11th, at 2 pm PST. Initial bond capacity will be approximately $300k. You can bond your OHM-FRAX LP here.
Bonds for FRAX will launch Wednesday, June 16th, at 2 pm PST. Initial bond capacity will be approximately 200k FRAX. You can bond your FRAX here.