Iron Bank issues bonds via Olympus Pro

  • Sell pressure due to reward issuance. Especially LP providers who immediately sell rewards to recoup their investment.
  • Goal misalignment between Iron Bank and LP providers. As we’ve learned from the DeFi wars, LP providers have mixed objectives between long term and mercenary goals. Decisions made by LPs may not align with the best interest of Iron Bank, but favor the short term reward rate.
  • Impermanent Loss. Unfortunately success for Iron Bank can often be a disincentive for LP providers to participate long term as the risk of greater impermanent loss increases.
  • Liquidity Safety. Protocol liquidity is needed most during periods of volatility. Unfortunately this is often also when LP providers will pull their liquidity.

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