Olympus Convertible Deposits (CDs) Community Call

Sept 4th Community Call.mp3

CD’s Walkthrough: https://youtu.be/sr-N-QS-EV0 CD’s Testnet Demo: https://youtu.be/tSZSW_sHsyM Callisto Preview: https://youtu.be/Z_oRZEaRLDc

Introduction to Convertible Deposits

Convertible Deposits (CDs) are a new financial primitive designed to activate idle stable liquidity while offering flexibility and upside potential. CDs allow users to:

• Lock in a future conversion price for OHM
• Keep initial capital productive and liquid
• Borrow against their USDS deposits
• Choose between stability and potential growth

CDs represent the next evolution in Olympus's toolkit, enabling both users and the treasury to leverage stable assets more effectively.

Technical Overview

The CD system consists of several key components:

• Deposit Manager: Custodies user deposits separately from treasury
• Positions: Records containing conversion expiry, deposit amount, and OHM price
• Receipt Tokens: Issued 1:1 with deposits, can be transferred independently
• Convertible Deposit Facility: Handles position creation and management

Users have three main options after creating a position:

• Convert: Exchange receipt tokens for OHM at the locked-in price (before expiry)
• Redeem: Get deposit back 1:1 (with waiting period matching deposit term)
• Reclaim: Get deposit back immediately with a fee (currently set at 10%)

Positions can optionally be minted as ERC-721 NFTs, making them transferable and tradable.

Auction Mechanics

The CD system uses an auction model with the following features:

• Auctions run continuously with ticks of fixed size (initially 150 OHM per tick)
• Price increases with each tick (initially 0.75% per tick)
• First-come, first-served allocation within ticks
• Price decay mechanism if no bids are received
• Daily emission targets determined by market conditions

The auction configuration can be adjusted through governance to optimize performance.

Testnet Beta Available

A testnet version of the CD interface is now available for community testing:

• Currently features a 6-month deposit term for testing
• Users can mint test USDS from the interface
• Feedback thread has been created to collect bugs and suggestions
• Testing will help refine the system before mainnet launch

Institutional Efforts

The team is pursuing several institutional opportunities:

• Working with traditional companies interested in using OHM for refinancing or leveraged buyouts
• Exploring digital asset treasury opportunities
• Developing front-end solutions to minimize friction for non-DeFi users

Project Callisto: Building on CDs

Callisto is a third-party project building on top of Olympus using CDs as infrastructure:

• Allows users to wrap OHM into cOHM at a 1:1 rate
• Provides a lending market with leverage against OHM's market price
• Currently in audit phase before launch
• Demonstrates the permissionless nature of Olympus infrastructure

Action Items

• [ ] Community members to test CDs on testnet and provide feedback
• [ ] Share the Medium article and Twitter thread about CDs
• [ ] Delegate governance tokens for upcoming proposals
• [ ] Next community call scheduled for October 2nd

Next Steps

The launch process includes:

• Completing the Guardian audit
• OCG proposal (7-week process)
• RFC (3-day process)
• OIP proposal and vote

The team emphasized the importance of community participation in marketing and promoting CDs, asking members to help amplify Olympus's message.