Allocate a part of the treasury to provide price support for $OGN

I would like to propose to use a part of Origin’s treasury as price support for $OGN via CoWSwap. We could also consider CEXs, however through CoWSwap the assets of the treasury could remain OUSD/OETH.

The buywalls would be set at fairly unrealistic prices, in case of flash crashes like the one that happenend on the 10th of Oct.

E.g.

The price of OGN is $0.05 > buywalls are set at the $0.01-$0.03 range.

Pros:

  • Chance to buy OGN back at exceptionally low prices, thus improving the APY on locked OGN.
  • More confidence for investors, knowing that the protocol has its own price support.
  • Might make it less risky for people using leverage to long OGN.

Cons

  • Requires team attention because the buywalls would have to be set manually each time the price of OGN moves a certain amount.
  • A part of the treasury would be used to support the price of OGN, rather than applying buy pressure. However, if the treasury were to run dry, we could always make a new proposal to remove the buywalls and use these assets to buyback OGN at market levels.

Lastly, how much of the treasury should be used?

I think about 5-15% of the treasury would be a good amount to use as buywalls. This would be approximately $300k at the moment.

Please let me know your thoughts that I can consider before making an official Snapshot proposal.

Thanks for reading.

Not a bad idea. Origin is consistently buying back OGN if you weren’t aware, you can follow the buys on OGN Alerts: https://x.com/OGN_Alerts

Yes, I am aware of that. This would be in addition to the ongoing buybacks. Thanks for the reply.

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@Arvikay Thanks for this proposal, it’s indeed an interesting idea, and we could have benefited from this.

Since most alts are tied to ETH price volatility, we could probably come up with a percentage relative to ETH’s price and set the buy order.