With the Arrakis public vaults close to launch, Olympus wants to invite builders to develop a manager contract for a public vault that reads the on-chain RBS ranges and adjusts the concentration of a OHM/ETH and/or OHM/USDC univ3 position accordingly. This public vault will be the first fully on-chain, automated, and trustless Arrakis position.
$10,000 in gOHM. Paid out by the Olympus Association. Requires KYC/KYB.
Arrakis is web3's trustless market making infrastructure protocol that enables running sophisticated algorithmic strategies on Uniswap V3. Liquidity providers can utilize Arrakis Vaults to have their liquidity be managed in an automated, capital efficient, non-custodial and transparent manner.
The vaults can either be private, only whitelisted addresses can add liquidity, or public, where anyone can add liquidity. Each vault has a manager type that runs the specific strategy. These could be fully managed vaults or trustless vaults - in which the strategy is encoded in a smart contract and runs in a fully trustless and automatic manner.
The Olympus Protocol automatically executes market operations to absorb volatility in the market price of OHM in relation to its reserve assets. This system is called Range-Bound Stability. The initial system design operates against individual reserve assets in isolation, and has been deployed to stabilize the price of OHM against DAI.
https://lh3.googleusercontent.com/8LV6SJgP7rzbWDRxP45FdVoMZKJQ2dIqBI81_ebH3S1u2DNFPIceLmjS2ZgVOx-foD2GPgKQNNAJSZgGJhk9yp9zYVIpuAnMa9MioWcZHV8SiaHeqZ_dap5gOyOqhNnab8OxFVIgpSHq1rnZadb5xvM
RBS involves deploying treasury reserves in a downward trending market and selling OHM for reserves in an upward trending market to stabilize price. The nature of these actions causes contraction and growth of the network depending on the market environment to enforce stability.
The RBS ranges, meaning the start of the cushions, the “walls” at the end of the cushion zone, as well as the target price of RBS, can be queried on-chain. As a result, any party can provide concentrated liquidity in between the cushions (or between a cushion and the target price) where the OHM price is most likely to be at any given point in time.
The goal for this manager contract is that the RBS ranges are queried periodically and the univ3 position is adjusted accordingly to ensure the liquidity is between two interesting price points, such as in between both cushions, or between a cushion and the target price.
With the stability of OHM over the last months these updates don’t have to occur very frequently (e.g. over the last month or so, the target price has not deviated >1%).
High-level requirements: