OlympusDAO partners with Visor to include Uniswap v3 LP positions in Olympus Pro bonds
Visor is excited to announce a strategic partnership with OlympusDAO to provide a way for protocols to bond Uniswap v3 positions. Float Protocol will be the first protocol to utilize Visor Finance and Olympus Pro to bond FLOAT-ETH liquidity.
What is Olympus Pro bonding?
Olympus Pro bonding is a platform for protocols to be able to purchase their own liquidity in exchange for discounted protocol tokens. The protocol is the issuer and the bonder is a public LP who exchanges LP tokens for the discounted issuer tokens, which vest over a certain period of time, typically 7–10 days. To illustrate a simple example, a bonder would bond $1,000 worth of FLOAT-ETH LP tokens to receive $1,100 worth of FLOAT tokens in 7 days.
The Visor integration allows protocols to directly bond Uniswap v3 liquidity. Previously, Olympus Pro had only allowed the bonding of Uni v2 or Sushi positions because their platform is only compatible with bonding ERC-20 LP tokens. The Uni v3 LP tokens are represented by ERC-721 NFTs, which are incompatible with Olympus Pro. To solve this issue, Visor issues ERC-20 LP tokens that represent a Visor-managed liquidity position on Uniswap v3. That LP token is then capable of being bonded on Olympus Pro.
What are the steps needed to bond?
A bonder would obtain FLOAT-ETH LP tokens from Visor Finance by depositing both FLOAT and WETH on the Visor front-end. A bonder does NOT need to mint a Visor NFT for this process.
After approving and depositing a proportional amount of WETH and FLOAT, the bonder will receive ERC20 LP tokens that represent shares of a Visor-managed Uni v3 position for FLOAT-ETH. The assets deposited would then be subsequently managed on Uni v3 by Visor.
The bonder would then head over to the Olympus Pro marketplace, and simply follow the steps to bond the LP tokens for the FLOAT-ETH pair (to be listed in the next cohort)
Once the bonder deposits the Visor LP tokens for the FLOAT-ETH pair, s/he will receive FLOAT tokens after the specified vesting period.
Why should protocols utilize Olympus Pro bonding?
The main advantages to Olympus Pro bonding is that it allows protocols to source their own liquidity by paying strictly with their own protocol tokens. The vesting period makes it so that the bonder has to take the risk of token exposure for a certain period of time which helps filter out pure arbitrageurs.
There is also the marketing angle of being associated with OlympusDAO and having access to their front-end and community. The exposure to the large community of OlympusDAO may increase the demand for a protocol’s token.
Why the partnership between OlympusDAO and Visor?
The partnership between OlympusDAO and Visor provides services for both acquiring liquidity and managing that liquidity in the most capital efficient way. Uniswap v3 is the most capital efficient DEX on the market today. The main appeal of Olympus Pro is the ability for protocols to acquire their own liquidity, and the main appeal of Visor is managing protocol-owned liquidity on Uniswap v3.
By allowing Uniswap v3 positions to be bonded, bonding protocols receive end-to-end liquidity services for both acquiring and managing liquidity.