OlympusDAO Integrates Chainlink VRF for Provably Fair (3,3) Together No-Loss Raffles
OlympusDAO is excited to announce that we have integrated Chainlink VRF on Ethereum mainnet. By integrating the industry-leading decentralized oracle network, we have access to a verifiably random number generator that is used to choose winners of our no-loss raffle on the OlympusDAO protocol. Ultimately, this helps assure users that the raffle is provably fair and transparent, building a more fun and exciting staking experience for ohmies participating in the recurring (3,3) Together raffle.
Operated by a decentralized autonomous organization (DAO), OlympusDAO aims to become a decentralized financial reserve protocol for the entire blockchain ecosystem. OlympusDAO ensures that each OHM will always be backed by at least one dollar in value by holding a certain amount of MakerDAO’s DAI within its DAO treasury — although the token can venture upwards as a floating currency that is subject to the whims of the free market.
The protocol accomplishes this by changing its supply by either minting or burning tokens based on OHM’s price. If the token price drops beneath a dollar, creating a surplus for the risk-free treasury value relative to OHM’s supply, the protocol will buy back and burn tokens using treasury funds until the market price returns to one dollar. If the price of OHM exceeds a dollar, the protocol will mint and sell tokens on the open market to buy reserve assets and increase its treasury funds.
OlympusDAO participants can also stake their tokens on the platform to receive sOHM, or staked OHM, which can always be redeemed for an equivalent amount of OHM, as the supply of sOHM stays at a 1:1 ratio to the OHM token. Whenever the protocol mints more OHM and sells it on the open market, an equivalent amount of sOHM is distributed to stakers in a supply rebase that happens at 8-hour intervals, resulting in continuously compounded rewards that can be redeemed for OHM at any time. Alternatively, stakers can delegate their staking rewards to the (3,3) Together raffle — a no-loss raffle that pools staking rewards together and rewards 3 lucky winners who split the total sOHM amount.
In order to help ensure provably fair drawings for the raffle, we need access to a secure random number generator (RNG) that any user could independently audit. However, RNG solutions for smart contracts require several security considerations to prevent manipulation and ensure system integrity. For instance, RNG solutions derived from blockchain data like block hashes can be exploited by miners/validators, while off-chain RNG solutions derived from off-chain APIs are opaque and don’t provide users with definitive proof about the integrity of the process.
After reviewing various solutions, we selected Chainlink VRF because it’s based on cutting-edge academic research, supported by time-tested oracle infrastructure, and secured through the generation and on-chain verification of cryptographic proofs that prove the integrity of each random number supplied to smart contracts.
Chainlink VRF works by combining block data that is still unknown when the request is made with the oracle node’s pre-committed private key to generate both a random number and a cryptographic proof. The OlympusDAO smart contract will only accept the random number input if it has a valid cryptographic proof, and the cryptographic proof can only be generated if the VRF process is tamper-proof. This provides our users with automated and verifiable assurances directly on-chain that raffle drawings are provably fair and were not tampered with by the oracle, outside entities, or the OlympusDAO team.
In the future, we’re considering further integrations of Chainlink products, such as Chainlink Keepers, to automate supply rebases of sOHM so that users can receive staked rewards through processes that are completely autonomous.
“By integrating Chainlink VRF, we are further committing to building a transparent environment in which the entire OlympusDAO community can independently verify the results of the (3,3) Together Raffle. We look forward to adding more Chainlink services to our tech stack and building a robust product that will stand the test of time.” — OlympusDAO Team
Learn more about how (3,3)’ing together helps us all win at Chainlink, PoolTogether, and Olympus.
Chainlink is the industry standard for building, accessing, and selling oracle services needed to power hybrid smart contracts on any blockchain. Chainlink oracle networks provide smart contracts with a way to reliably connect to any external API and leverage secure off-chain computations for enabling feature-rich applications. Chainlink currently secures tens of billions of dollars across DeFi, insurance, gaming, and other major industries, and offers global enterprises and leading data providers a universal gateway to all blockchains.
Olympus is a decentralized financial reserve protocol that provides sustainable compounding interest through its community-owned and protected treasury. With the latest release of Olympus Pro, they offer protocol-owned liquidity as a service to empower the DeFi ecosystem.