Introduce KLIMA/gOHM bonds instead of wsKLIMA/gOHM bonds.
Initially, when this proposal was made, the APY of OHM was 7000% APY. Even assuming a modest reduction in price for OHM, we would experience large impermanent loss in the pool. With the recent reward rate reduction, the Olympus policy team is aiming for 1k% APY now. Because of this, the impermanent loss risk is vastly reduced, to the point where benefits of pairing KLIMA itself (instead of wsKLIMA) with gOHM outweigh the downsides significantly.
Benefits of KLIMA/gOHM:
By using KLIMA, there is less friction to interact with the other pools. An additional liquidity rail is added onto KLIMA, further increasing the utility of the token.
Since wsKLIMA is staked, the supply accrued in the wsKLIMA/gOHM LP would not be given to the stakers of the protocol. Using KLIMA/gOHM instead ensures staking rewards flow to the community instead of back to the Klima treasury.
As a start, we will deploy $500K in KLIMA from the DAO treasury to pair with $500K in gOHM. Over time, we will deploy up to $5 million of our DAO treasury in order to bootstrap liquidity for the KLIMA/gOHM pool.
Because we have passed KIP4 before, if this polling period goes without significant disapproval, we will omit the snapshot period.
The informal polling period begins now and will end at 1/15/2022 23:00 UTC.