Bank Of Cronos: Decentralized Store of Value and the Vitality of gOHM

The rise of decentralized reserve currencies like OlympusDAO has inspired the emergence of hundreds, if not thousands of forks seeking to emulate their success. The likes of Klima DAO, Wonderland, Rome DAO and Invictus DAO are all forks of Olympus that have each amassed exceptionally high TVL and sky-high APY rebases for token stakers. What has been vital to each of these forks has been that each protocol operates on different competing chains with different monetary policies from that of Olympus. However, many of the “goals” as described by these forks have been very similar if not the same as Olympus, in wanting to become the decentralized reserve currency of their respective blockchain. To put it simply, these forks want to compete with Olympus DAO by offering the same if not similar incentives whilst operating on a different blockchains. The subsequent flooding of investors eyeing and dubbing these forks as “the next Olympus”, ultimately led to an influx of forks, copy-cats, rug-pulls and pump and dumps, so much so that there is now even a website, ohmforks.com, set to track Olympus forks. While the innumerous list of forks continues to grow, the long-term success of any given fork is dependent on how it develops innovative ways to grow its protocol-owned liquidity and its treasury, all while building a strong community to push these initiatives forward. The Bank Of Cronos aims to develop and deploy various protocols in an effort to bring in treasury revenue alongside the infamous Olympus-style bonding to make this happen.

The first phase of the Bank Of Cronos launch starts Jan 20th with the BOC token airdrop. The goal will be to grow the treasury value along with the protocol owned liquidity. The first BOC/USDC liquidity pool will be opened on launch-day and bonded into the treasury. The BOC NFT holders will have 4 choices once they receive their BOC airdrop (Buy, Sell, Bond, or Stake). Buying/selling BOC will be an option via the first BOC-USDC liquidity pool (or any others created subsequently) but the BOC supply will be sparse (first liquidity pool opening at $100 USDC/BOC). BOC tokens can only be minted when assets are exchanged with the treasury in exchange for bonds. The initial bonds available will be USDC and BOC/USDC LP to meet the protocols launch goals. The incentives though will always be aligned for all BOC token holders when the majority of BOC supply is staked (G, G) (“The Game [Theory] of Olympus”).

Figure 1(Percentages of staked OHM vs. not staked OHM)
Figure 3(Left, liquidity pool fees vs. Right, total liquidity owned by Olympus)

The next phase of the Bank Of Cronos bonds will be the introduction of gOHM bonds. Olympus DAO v2 which launched recently and introduced with it innovative bonding features and the auto-staking governance token gOHM (docs.olympusdao.finance/main/contracts/tokens). We believe the introduction of gOHM in the BOC treasury allows token holders to gain allocation to the ever-growing Olympus Dao treasury. With three initial bonds, the BOC protocol treasury allocation will be dictated by market demand as the DAO develops capabilities to vote on treasury asset-allocation going forward (baloteli45, “Request for comment: Treasury Framework”).

Figure 2(Olympus treasury breakdown by asset type)

Competition has always and will always be vital for a healthy market. Forks are competitive by nature as they mostly vie to become successors of whom they emulate. That being said, to a certain extent our independent success remains correlated with that of our collective success. That is why Bank Of Cronos believes that supporting Olympus will ultimately help and support Bank Of Cronos and lead to a more unilateral equilibrium between different chains. As highlighted by the “Bretton Woods 2.0: ROME <> OHM” proposal made by Zeus of Olympus DAO and Rome DAO, the future for a sustainable ecosystem lies with cooperation and a shared goal to promote economic growth regardless of the operating chain and its encompassing ecosystem. Bank Of Cronos aims to be the reserve currency of Cronos, not of Ethereum or Avalanche for example; we believe that Olympus is best suited to do so. Rather than competing with Olympus, utilizing gOHM as part of our reserve will help our success and as our success feeds into that of Olympus, Olympus’ success subsequently feeds into Bank Of Cronos. Although the two are not mutually exclusive, they are mutually beneficial and in doing so, we can continue to progress the model that projects across chains that collaborate “in a positive-sum manner” will reap collective benefits, growth and sustained development.

So how does Olympus DAO serve to benefit Bank Of Cronos? Currently, there is no gOHM on the Cronos network, period. Bank Of Cronos aspires to be the first to introduce gOHM across Cronos, furthering the reach of Olympus across chains whilst enabling BOC to become the decentralized reserve currency on Cronos. The Bank Of Cronos team has voted on providing an allocation of pBOC tokens for Olympus DAO, totalling 4% of BOC future supply. By being permissioned to sell gOHM bonds, Bank Of Cronos would thus be allowed to gain allocation to the profitable and diversified OHM treasury. Concurrently, we also want to initiate the bridging of BOC, as wsBOC, to the Olympus treasury. We see this as an opportunity not only to bridge gOHM to Cronos, but in effort to build upon a mutually beneficial ecosystem and partnership.

Ultimately the goal of the BOC treasury is to become a long-term store of value for BOC token holders. This starts with protocol-owned liquidity for capital efficient price discovery. This will be achieved eventually through a decentralized, diversified portfolio of treasury assets.

(G,G).

Works Cited

“The Game (Theory) of Olympus”. Olympus DAO Medium, 14 Jan. 2022, www.olympusdao.medium.com/the-game-theory-of-olympus-e4c5f19a77df.

https://ohmforks.com/.
Accessed 14 Jan. 2022.

Fig.1. “Percentages of staked OHM vs. not staked OHM”, https://dune.xyz/shadow/Olympus-(OHM). Accessed 14 Jan. 2022.

Fig.2. “Olympus treasury breakdown by asset type”, https://dune.xyz/shadow/Olympus-(OHM). Accessed 14 Jan. 2022.

Fig.2. “Left, liquidity protocol fees vs. Right, total liquidity owned by Olympus”, https://dune.xyz/shadow/Olympus-(OHM). Accessed 14 Jan. 2022.

@naval. “One way to decentralize store of value is to have millions of validating nodes. Another way to decentralize store of value is to have millions of different assets.” Twitter, 14 Jan. 2022, 12:00 a.m.,
https://twitter.com/naval/status/1447435096131203079?s=24

Authored By: NewageSage

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