[Proposal] Create an OMG yVault

Proposals Vaults
1

Any thoughts or input would be greatly appreciated!

Summary

Add OmiseGo (OMG) as the next volatile asset to be used as collateral in the delegated yVaults.

Abstract

Add OmiseGo (OMG) as the next volatile asset to be used as collateral in the delegated yVaults.

Motivation

Additional delegated yVault assets are necessary in order to generate more revenue for the protocol and the ecosystem. This proposal nominates OMG as the next volatile asset. As fees on Etherum continue to soar and demand only increases, many investors are looking very closely at 2 layer solutions. Tether (USDT) recently launched on the OMG Network, so that it could ease congestion in the base layer. This proposal nominates OMG as the next volatile asset to be used as the next collateral. Other tokens have polled higher, but OMG has already been developed, it is decentralized network that facilitates transparent peer-to-peer transactions in real-time, a scaling solution for finance on the Ethereum network and with 140 million token currently in circulation no more can be minted.

For: ADD OmiseGo (OMG) as the next volatile asset to be used in delegated yVaults.

Against: Don’t Add OMG.

Overview

Adding OmiseGo (OMG) as a collateral option to delegated yVaults will allow OMG holders to deposit token to the vault, which will increase the total locked in value (TLV) and generate a plethura of fees for the protocol.

Rationale

As many look to escape and offset the ever rising fees, with the demand for Etherum only rising, OMG will be the scalable solution with the infrastructre that can support them. OMG has already been developed and will be faster to launch as a vault. The OMG community is one of the stronger, more active crypto communities, as opposed to others that are not emmersed in DeFi. No more OMG tokens are able to be minted. With the addition of OMG to yVaults, smaller OMG holders will be able to either allow their rewards to compound or claim them on a regular basis at very low gas costs. This model of inclusion will likely draw small and large OMG holders alike, further increasing AUM and driving fee generation for YFI holders.

MIT License

Copyright © 2020 Emaz83

Permission is hereby granted, free of charge, to any person obtaining a copy
of this software and associated documentation files (the “Software”), to deal
in the Software without restriction, including without limitation the rights
to use, copy, modify, merge, publish, distribute, sublicense, and/or sell
copies of the Software, and to permit persons to whom the Software is
furnished to do so, subject to the following conditions:

The above copyright notice and this permission notice shall be included in all
copies or substantial portions of the Software.

THE SOFTWARE IS PROVIDED “AS IS”, WITHOUT WARRANTY OF ANY KIND, EXPRESS OR
IMPLIED, INCLUDING BUT NOT LIMITED TO THE WARRANTIES OF MERCHANTABILITY,
FITNESS FOR A PARTICULAR PURPOSE AND NONINFRINGEMENT. IN NO EVENT SHALL THE
AUTHORS OR COPYRIGHT HOLDERS BE LIABLE FOR ANY CLAIM, DAMAGES OR OTHER
LIABILITY, WHETHER IN AN ACTION OF CONTRACT, TORT OR OTHERWISE, ARISING FROM,
OUT OF OR IN CONNECTION WITH THE SOFTWARE OR THE USE OR OTHER DEALINGS IN THE
SOFTWARE.

  • © 2020 GitHub, Inc.
2

So, first a few housekeeping things: please don’t assign a YIP to your proposal, a mod will do that for you once it’s ready to move to voting. Additionally, it’s really helpful if you give your topic a descriptive title that gives forum users an idea of what it is before clicking on it. I fixed these issues and put this in the “Vaults” subcategory since it pertains to vaults, and fixed the formatting issues on the original post.

That being said, the first issue with this proposal—how will be borrow against OMG? It’s not on Aave, CREAM, or Compound.

Without a way to borrow against it, any OMG strategy is dead in the water.

1 Like
3

I don’t think there’s enough liquidity for yearn to establish a vault for OMG. It’s not on Pickle, Cream, or Aave. It’s on Bancor but the liquidity is low ($800k), whereas Uniswap has potential for divergent loss.

4

Thank you! Sorry on the YIP issue.

5

I’m opposed. There is much higher interest with other coins more in demand in DeFi. Don’t think the vault would even gather more than a few low 7 figure deposit amount.

No benefit in creating this vault over some other higher in-demand tokens.

1 Like
6

Not against it, but do agree with @franklin and @dudesahn about the stategies.
I only pick the most attractive performers in the long term with a good team.
Excellent margin range potential compress with high volume and superior fair
wide distribution across governance , staking, dex , cex and Defi plateforms.

1 Like
7

Thank you for your input. I appreciate your thoughts!

8

Thank you for your input. I was focusing more on the fact that even with a few low 7 figure deposits, even generating between 7 - 14 million coins, the vault would hold between 5 and 10% of all minted coins. Since coins are capped at 140 million and network congestion will only rise. Having already reached over $25, modest projections have this coin projected to grow over 600% over the next 5 years alone. I understand the immediate downside, many other attractive coins, but long term this is one of the more attractive performers, already built to scale with network congestion solutions.

9

I apologize if that sounds redundant! I was greatly torn between the Kyber Network (KNC) and OmiseGo.
I went Omise for those reasons. Thanks again for any input!

10

Since coins are capped at 140 million and network congestion will only rise. Having already reached over $25, modest projections have this coin projected to grow over 600% over the next 5 years alone

This is just a guess based on vague expectations.

I do not see how it will be sustainable in the long term (OMG yVault), low liquidity, borrow issues etc.

11

Fair to say! I spent a long time debating between OMG and another token. I’m going back to the drawing board. Hopefully KNC gets a better reception!