# meeting on OHM bonds

###### tags: `olympus`

Key question:
- optimizing how much we can emit and for which durations while minimizing volatility.
- how ohm bonds interconnect with RBS (supply locks and unlocks),

docs:
- white paper: https://hackmd.io/@HMyg0dxkQ96YOMpI30o8PA/mbga
- a simple play: https://docs.google.com/spreadsheets/d/15ggRrsLsDqKKM9LN72DydbTNQV0dUA80KFTZwBZxHLQ/edit?usp=sharing
- auction records: [auctions.olympusdao.finance](https://auctions.olympusdao.finance)

## how bonds work
### overall mechanisms to be confirmed
- sells it at a specific price (how to determine this initial price?) -- determined by the auction
- potential policy: assume a range?
- can be traded at arbitrary price on a secondary market
- expires at a certain date
- [x] when expires, additional supply will be generated to give the bond rewards? -> supply is preminted
- [ ] measures for supply releases
### math on APY
- questions on hackmd
- questions from the sheet: what's the logic for each step?

## what are the goals for OHM bonds?
- replace current staking capacity.
- current staking capacity determined by...
- maximizing ... what? -> maximize user participation at a base layer of the economy (Creating "Money games" for people and institutions to play). Maximize for protocol efficiency (rehypothecating locked OHM?)
- participation: measured by velocity; brain power used (or simplify it with a vault token; the vault would have some liquidity at hand; a way to mitigate risk: allow early exit with fee)
- action: participate in primary market, resell on secondary market; even delegate votes
- motivation for participation: long term holders rewarded more
- goal for OHM:
- locked supply for treasury; know when the supply will be released and be prepared to regulate
- ultimately get away from staking
- minimize emissions; pushing the rewards to be in the secondary market
- minimizing volatility -- how to define? -> minimize volatility per Treasury dollar spent
- if volatility means the price of OHM, usually it can be defined as ATR(average true range). what does it mean per treasury dollar spent?
- scenarios:
- passive holder who's been staking: buy a bond on the auction; 6-month bond; locked supply;
- with or without lending market
- existing problem：
- excessively high APY due to less flexible code
- too quick of a turnover for staker (too liquid) because they don't have any risk
- ideas:
- use the bond for lending market

### intuitions
- what are some key parameters and their effects?
- capacity: premium of OHM v.s. treasury;
- connection with RBS?
- with staking, excessive supply will hit the market whenever; with the determined dates, safe to assume no big amounts of supply for a longer time.
## others
- what actually happened in the batch auction?
- alternative way of auction: https://docs.bondprotocol.finance/basics/bonding