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Emissions Manager

Overview​

The Emissions Manager (EM) is an Olympus Policy installed into the Kernel. Its purpose is to emit new OHM supply into the market in a programmatic way. At its core, its schedule is informed by two main variables: the base emissions rate and the minimum premium. This variables are configurable by OCG in the event that they need to be adjusted in the future. The calculation of premium (which equals market price / backing price) occurs every 3 epochs and is triggered by the heart.

When premium is greater than the minimum premium, the protocol will create a Bond Protocol market offering a computed amount of OHM in exchange for new reserves (in the form of USDS). The equation for this emission is: new supply = total supply * base emissions rate * (premium + 100%) / (minimum premium + 100%)

Examples​

Let’s assume a total supply of 15m OHM and the base emissions rate is set to 0.02% Let’s also assume the current premium is 200% (Price of $30 with backing of $10) Last, let’s assume the minimum premium is set to 100% We then derive: New Supply = 15m * 0.0002 * (2 + 1) / (1 + 1) = 4,500 to be minted and sold through the Bond Protocol Market over the next 8 Hours (One Epoch)

Definitions​

The Emissions Manager also considers the following definitions:

  • Base Emission Rate is the base % of Circulating Supply to be sold per day (At the minimum premium)
  • Premium is the % Market Price is above backing and must be >= 100% for EM to be active
  • Current Emission Rate is the % of circulating supply to be sold per day at the current premium. This is the base Emission Rate scaled up as premium rises: Base Rate * (1 + premium / 1 + min premium). Its 0% if the premium is not >= the minimum premium (100%)
  • Current Emissions is the Current Emission Rate * Circulating Supply (Really gOHM supply in OHM terms since we're using that as a proxy for circulating supply)
  • Next Emission Rate and Next Emission are just the same values for the next using the current price