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# System prepended metadata

title: Olympus <> BarnBridge Collaboration Memo

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# Olympus <> BarnBridge Collaboration Memo
This document is meant to serve as a guiding agenda for conversation between OlympusDAO and BarnBridge in regards to the upcoming launch of FIAT II. 

**Main Items**
1. Deciding upon $OHM or $gOHM as preferred collateral asset
2. Feasibility of a boosted pool
3. Dual boosted pool concept

**Background Info**
- [Introductory Blog Post](https://mirror.xyz/barnbridge.eth/lCJFHCSAt-Y-B7og1Ptsr-_H61MKX80qIhI7dun9Qyg)
- [Liquidity Partner Memo](https://barnbridge.notion.site/FIAT-II-Liquidity-Partner-Memorandum-a48036e72fea45d99e72ae6c5391979a)

**Miscellaneous**
- Codebase Access
- Default Framework

## 1. June 1st Discussion


### 1.1 Preferred Collateral Asset for FIAT II Vault
FIAT II will be launching with a vault template capable of handling ERC-20 collateralized debt positions. Users will be able to mint $FIAT against these positions, as well as start earning yield on them through internal credit delegation. 

![](https://hackmd.io/_uploads/BkCSuQSU2.png)

We'd like to better understand whether Olympus is prioritizing $OHM or $gOHM adoption when it comes to cross-DeFi collateral integrations.

### 1.2 Olympus Boosted Pool
BarnBridge is keen on piloting an OHM-FIAT boosted pool. With FIAT II, we can offer a unique value proposition in the sense that increased demand for $FIAT can flow back to Olympus via protocol interest.

For example:
- OHM-FIAT boosted pool yields x% to $FIAT depositors
- Undersecured vaults facilitate $FIAT minting at y% to deposit into the boosted pool
- $OHM depositors into FIAT II can play the spread via credit delegation

Furthermore, BarnBridge is in a position to subsidize such a pool via Paladin. 

### 1.3 Dual Boosted Pool
BarnBridge contributors have discussed a spin on the boosted pool concept in which an LP token is onboarded as collateral with a special $FIAT credit line. This would allow both BarnBridge and Olympus to supplement an OHM-FIAT pool, with the twist being that depositors bear the cost of impermanent loss, as they are only entitled to a certain amount of LP tokens rather than a certain LP composiiton. 

The benefits of this model are that it reduces DAO exposure to the counterparty asset and drives down the equilibrium yield target for pool depositors.

## Miscellaneous

- We're currently underway with audits by Spearbit and Dedaub. We can extend access to the codebase for Olympus contributors to check out - just let us know who to add.

- We'll be implementing a combination of Delv's Council Kit and Fullyallocated's Default Framework. To whatever extent Olympus is further developing its governance stack, we'd be happy to chat more and compare notes.