PoolTogether Recently did an analysis of their OHM Pro Program and I’d like to make some of the main points known before we proceed with this route. I do think this should be in the budget though.
Notable Points;
- The total number of participants in the Olympus Pro sale: 5
- bots accounted for 127 of the 227 bonded LP tokens (i.e 56%).
- All of the POOL redeemed by this army of bots was sold. An additional 54 of the tokens were bonded by one other address that has completed 3 round-trips of bonding, redeeming, selling half the POOL and bonding again. These two actors alone account for 80% of the bonding.
- Between those two actors, 85% of the POOL redeemed in the process was sold, instead of being transferred to long-term holders interested in participating in the protocol.
- Acknowledging that our fixed cost of 3.3% to participate in the program only goes up with bond discounts, which at minimum subsidize gas costs, it seems unlikely that the PRO setup can compete with other methods of converting POOL to ETH.
For this Reason and more (Impermanent Loss Protection, and Single-Sided Staking) I think we should pursue increasing our treasury investments into Bancor rather than OHM Pro but I am open to any other suggestions.