gm OHMies
@OlympusDAO has recently announced their Version 2 and it's a massive leap from their previous version.
Why is it a big deal? Why to even migrate from V1 to V2? What all do you need to know?
A thread🧵
Why migrate? Let's break it down:
2 new features are introduced under V2. They are:
On-chain Governance
Auto-Staking of Bonds
Under On-chain gov, the stakers will take full control of protocol contracts which will occur in phased roll-out.
How will the process take place:
On-chain governance will occur through the gOHM token & users can now stake directly into/out of gOHM, which will save their time and gas.
Now, looking at the upgrades that Bonds have gotten:
Bond payouts are staked at the time of purchase. Rather than requiring bonders to factor in missed rewards when considering a discount, they are now earned by default.
Bonds no longer vest linearly. Instead, bonders must wait until the end of their term to redeem.
New bond types are created as isolated offerings. Each bond has a max amt of OHM that can be paid or a max amt of principal that can be purchased and, once exceeded, the bond is retired.
Bonds can be held as NFTs.
Bonds can be fixed-term or fixed expiration. Fixed-expiration means the maturation date is the same for all who buy that bond.
Bonds offer a front-end reward: Incentivizing third-parties to run front-ends for Olympus.
Okay so that's the new stuff but what'll happen with all the tokens?
Let's first sort the nomenclature a little:
OHM: The main tokens sOHM: Staked OHM tokens wsOHM: Wrapped, Staked OHM tokens
We are aware of the above ones. But what comes under V2? gOHM: Governance OHM tokens
So,
the wsOHM V1 will be replaced by gOHM. They function exactly the same, but gOHM is set up for on-chain governance.
OHM and sOHM tokens will have their identical V2 counterparts. OHM V1 becomes OHM V2, and sOHM V1 becomes sOHM V2.
Token tickers will remain the same for V1 tokens. For example, after migration, your wallet will show "OHM" instead of "OHM V1".
Make sure to update the token contract in your wallet with the V2 addresses to show your balances.
When migrating OHM V1 and/or sOHM V1, you will get gOHM in return. Although the token balance will be different, the dollar amount remains the same.
After the migration, OHM V1 pools such as OHM-DAI will utilize OHM V2. This applies to new bonds as well.
An example of how much gOHM you can expect from the migration:
Other important points to note:
Enabling V2 will require migration to a new set of smart contracts. The migration will replace all existing contracts, including the OHM token.
One will have a window of ~2 months to migrate without missing rewards. After this window, you can still migrate; however, some rewards will be forfeited.
Migrating will be a single transaction and it won't cost much more than staking.
If you don't migrate, you don't get to enjoy the new features introduced by V2.
You can either migrate all your V1 tokens (i.e. OHM, sOHM, and wsOHM) or none at all.
You can't switch back from gOHM to V1 tokens through the migration tool.
In V2, you can purchase multiple bonds of the same type without resetting the bond vesting period.
The process of claiming rewards & staking will be automated. The bonders will receive their entitled sOHM at the end of the vesting period.
Your gOHM will still earn rebase rewards. It is because the price of gOHM is tied to the Current Index:
Every rebase event will cause the Current Index to go up, and your gOHM is worth more as a result.
Lastly, regarding the migration process, it requires two steps: one to approve the contract for each of your V1 tokens, and another that actually migrates all your tokens to gOHM.
Each V1 token type requires its own approval step. For example, if you have OHM V1 and sOHM V1 in your wallet, you need to perform two token approvals, but only one migration operation (3 transactions in total)
OHMies, so these are all the necessary updates regarding version 2 and I hope this will give a clear picture of what's all there in the update. Thanks for reading! :)