Hey Ohmies: Borrow on FiRM with gOHM Without Giving Up Your Voting Rights


Risk Working Group


3 min

Cover Image for Hey Ohmies: Borrow on FiRM with gOHM Without Giving Up Your Voting Rights

gOHM is an ideal candidate collateral for Inverse Finance’s fixed-rate money market protocol, FiRM, and here’s why.

OHM is “volatility-resistant”

Olympus DAO utilizes novel DeFi concepts like rebasing, bonding and a novel Range Bound Stability system which adapts to the market to keep their token OHM’s price within a fairly stable range. Olympus aims to have OHM serve as a crypto-native reserve currency across the blockchains. They are an established DAO with a governance forum and snapshot voting, and have a treasury (+$241M) with a significant amount of protocol owned liquidity employed in their market operations.

gOHM’s characteristics are “sound”

gOHM is an ideal candidate collateral for Inverse Finance’s fixed-rate money market protocol, FiRM. The gOHM token is highly liquid and is paired with other reliable tokens such as wETH, USDC, AVAX, FTM. gOHM has deep liquidity pools on different platforms (Uniswap, Sushi, Trader Joe, Spookyswap) and several chains (Ethereum, Arbitrum, Avalanche, Polygon, Fantom). gOHM also has an elegant oracle solution, making use of a Chainlink oracle for OHM.

The Olympus Team

The Risk Working Group deems that Olympus DAO team employs appropriate risk management measures to ensure the safety and security of user funds. This includes one of the largest active bug bounty programs currently available offering $3.3M in rewards on the ImmuneFi platform. Furthermore, the Olympus DAO team has shown a strong commitment to the development and growth of the project, which has been evident in their continued activity and building throughout the second half of 2022. The team is actively engaged with the community, and they regularly update and communicate their development progress and road-map.

gOHM Voting Rights In FiRM

Ohmies can use their gOHM as collateral in FiRM and still vote in Olympus DAO governance! PCE’s act as an added security layer while at the same time letting the holder utilize the voting power innate in their collateral tokens. Rather than aggregating similar collateral tokens in pools, Personal Collateral Escrows separate deposits by user. This mitigates the risks of the single point of failure inherent in traditional collateral asset pool approaches (Compound et. all). 

Ohmies Appetite

Ohmies have a history of borrowing DOLA using gOHM as collateral. Rari Capital’s now deprecated Fuse Pool 6 (Compound fork), or “Tetranode’s Locker '' was once home to DOLA borrowing using gOHM as collateral. Fuse stood out from compound and other lending platforms by creating a permissionless platform where any asset could be used to borrow and lend with any parameters. The Fuse Pool 6 market, though inactive with borrowing permanently paused, is still healthy, with over 670k DOLA currently being borrowed by gOHM depositors.

More recently, FraxLend has offered a new home for gOHM collateral. Currently, 4.20M FRAX is borrowed against gOHM deposits, with a utilization rate of 84%. This demonstrates an appetite that can’t be ignored. We hope to house current and future gOHM holders looking to borrow against their collateral.

That's all for now. Don't forget to floss. See you in the next post!


Risk Working Group

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