[FIP 016] - Mint FLOAT for Olympus Pro Bonds and Visor Finance Integration

The BANK-ETH bonds via Olympus Pro have been going well so far with a total bonded value of $450,000.00 USD. Many people ask wen FLOAT-ETH?

Having FLOAT-ETH bonds are not a problem, in fact they sound great - a way for the Protocol to own some key liquidity rather than renting. But how are bonders rewarded? Do they get vested BANK? What does that look like in terms of BANK inflation? Can we be more efficient?

The Protocol currently has a Basket Factor of ~140%. We can utilise this extra basket factor to mint FLOAT to cater for the FLOAT-ETH bonds. Thus, users would bond FLOAT-ETH LP in exchange for vested FLOAT at a discount. Any new FLOAT minted should not decrease the Basket by more than approximately ~10% so the new Basket Factor after the mint of the new FLOAT the Basket Factor would be approximately 130%.

The FLOAT-ETH LP would be from Uniswap v3 liquidity provision via visor finance who have already created a management strategy for us.

Thus it is proposed to mint up to 300,000 FLOAT from the operations multisig to the Olympus Pro Bond contract for Visor FLOAT-ETH LP Bonds.

So we are talking about two points here, right?

  1. Mint FLOAT using ETH (or BANK) from the basket
  2. Using this new minted FLOAT-ETH for Olympus bonds, but we also have to decide about the rewards for the bonders

In FIP 015 we use the treasury funds to fund the rari pool. How do we decide to use the treasury or the basket to fund the different FIP?

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Hey hey :wave:

Sort of :slight_smile: So we aren’t taking funds directly from the Basket. We are just minting new FLOAT - this effectively decreases the Basket factor. This newly minted FLOAT will be used to reward FLOAT-ETH bonders. i.e. users bond FLOAT-ETH LP and receive FLOAT vested at a discount to market rate.

And we aim to mint as much FLOAT till we have 130% basket factor?

Correct, but also - no more than 300,000 FLOAT.