STRM-ETH Bonds on Olympus Pro
Olympus Pro will be offering STRM-ETH bonds starting January 20th, 2022. This is a critical step that will allow Instrumental to boost its Protocol Owned Liquidity (POL) and provide users with an additional means of earning $STRM.
Holders of STRM-ETH will be able to bond these liquidity providers (LP) tokens for $STRM at a discounted price — an important opportunity for users to take advantage of their STRM-ETH LP tokens in exchange for a liquid asset, in this case, $STRM. LPs who locked their STRM-ETH for veSTRM can also benefit by harvesting their LP tokens and exchanging them on Olympus Pro. It’s also a unique chance for users to buy $STRM at a discounted price. Users can benefit from this exchange after vesting their STRM-ETH on Olympus Pro for a given period of time.
While users can benefit from exchanging their LP tokens, Instrumental will own this liquidity from the bonded STRM-ETH. As more liquidity is accumulated, the liquidity pool can support larger trades, guarantee price stability, and protect against massive liquidity exits leading to healthy price action. Bonds also incentivize users through discounted tokens to help the protocol succeed, rather than coming and going when staking in a pool.
The Olympus Pro bonding mechanism is positioned to benefit Instrumental in the long term as we continue to increase our POL. But more importantly, this presents the perfect opportunity to make $STRM tokens available to even more people ahead of the release of the new strategies and deeper collaborations we have with other protocols in our integration pipeline. We’re very excited to bring this new opportunity to Instrumental users and holders of STRM-ETH LP tokens. This is a clear signal of the exciting developments as promised to our community and the rapid evolution of Instrumental Finance as a whole.
Olympus Pro is an LP tokens bond marketplace for POL where users can trade their LP tokens for the protocol’s governance tokens at a discounted rate. This is a unique way for protocols to sustain liquidity for their pools while generating yield. The protocol never sells these LP tokens, leaving the liquidity effectively locked within its treasury. This bonding mechanism provides benefits to both protocols and users, as opposed to the staking of LP tokens for farming rewards in a pool 2. By allowing protocols to own their own liquidity, Olympus Pro ensures the permanence of liquidity and provides security for the protocol and its users.