Olympus Cooler V2: How Origination LTV Auto-Adjusts Through Governance-Controlled Drip
Olympus Cooler V2: How Origination LTV Auto-Adjusts Through Governance-Controlled Drip
馃敡 Drip Mechanics Explained
Cooler V2's Dynamic Borrowing Limits
Olympus's Cooler V2 lending market uses a parameter called Origination LTV to set maximum loan amounts per unit of gOHM collateral. This limit increases automatically over time through a mechanism called the "drip."
Key Features:
- The drip rate is controlled by governance votes
- LTV can be raised through formal votes but cannot be lowered
- Ensures predictable borrowing conditions for all users
- Part of Cooler V2's perpetual lending system with 0.5% APR
- No liquidations or expirations鈥攍oans remain active as long as interest is paid
This structure allows borrowing capacity to expand gradually while maintaining protocol stability. All loans are issued directly from the Olympus Treasury, with interest payments flowing back into reserves.
Learn more at olympusdao.finance
2/ Cooler V2 (Olympus's lending market) sets the maximum loan you can take per unit of gOHM collateral via a parameter called Origination LTV. That parameter rises automatically over time, at a rate set by governance (and the rate of rise is what the protocol calls the drip).
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