Areas in which Olive is working on and will work on in the coming months
We believe supporting new assets and strategies, and further decentralisation and efficiency gains will unlock Olive's next growth phase. So, here are some of the innovations we are already working on and will work on in the coming months:
- Multi-Strategy Vaults: ETH and MATIC Vaults will be next up in the PPV series. But apart from supporting just ETH or MATIC, we will also accept deposits of LSD tokens and LP tokens of lossless LP pools such as stETH-ETH, stMATIC-MATIC etc. With multi-strategy vaults, we aim to maximise yields by allocating funds to the highest-yielding strategy and become a black hole for yield amplification of assets such as ETH, MATIC, and others.
- Liquid Vault Tokens: Since the principal deposited with Olive is never at risk, it makes sense to issue liquid vault tokens upon deposit, which will be called oTokens. Olive will catalyse the creation of an oToken ecosystem so that our users can earn more yields and enjoy even greater capital efficiency. As a use case for oTokens, think of the ability to use oETH to borrow ETH on Aave to redeposit in our vaults and get more oETH to borrow ETH again.
- Yield Enhancement: We will shift to a new auction mechanism where the yield generated will remain with Olive and participate in our amplification process. If the APY on Olive's vault is 30%, this shift will generate ~9% additional yield (30% x 30%). Although market makers may lower their quotes by 4% due to the lack of upfront yield, the APY will still increase from 30% to 35%.
- Reduced Fees: The management fee of 2% is currently charged pro-rata, irrespective of the profitability of the cycle. However, the performance fee of 10% is charged only if the cycle is profitable. Some users were concerned that the management fee would eat into their capital if most cycles were unprofitable. This is almost improbable, but to be more reassuring, we will transition to a mechanism that will charge the management fee only if the cycle is profitable.
- Governance: We believe the community should decide about Olive's future direction, upgrades, and risk management. We will work on an appropriate mechanism allowing the community to propose, vote on, and implement changes to Olive's code, rules, and incentives. This will ensure Olive remains aligned with the needs and interests of its users and can evolve to meet changing market conditions and requirements.
- Gas Optimised Smart Contracts: There is still room for improvement in reducing operational costs, such as the gas fees incurred. Our team will work on driving these efficiencies, resulting in massive savings over time.
Last modified 23d ago