Introduction

cantOHM • Documentation

What is cantOHM?

cantOHM is a DeFi protocol with the primary goal of creating a Liquid Governance Derivative (LGD) for the Canto L1 network.

Why does cantOHM want to become an LGD?

Canto is a new L1 aimed at providing DeFi as a public service for its users - an ethos that is near and dear to our heart. However, governance thus far has been guided primarily by early contributors who stake their Canto for voting power. This is important, as these individuals directly decide what public infrastructure is ultimately built, how LP/lending rewards are distributed via the native Canto DEX and lending module, and implementation of new primitives such as CSR.

We believe that governance should be more distributed across the Canto community, and critically, that there is a liquid derivative for staked Canto. Thus, cantOHM was created with the purpose of using the OHM model to acquire governance power, via bonds, on the Canto network - allowing cantOHM users to participate in network governance via the cOHM token. This provides users the ability to fund public infrastructure in a profitable manner.

How does cantOHM do this?

During the bootstrapping phase, cantOHM will bolster its treasury by offering discounted cOHM tokens to those that bond major ecosystem tokens (i.e. NOTE, wCANTO, etc) as well as LP tokens (cOHM/NOTE, cOHM/wCANTO, etc). As the treasury acquires more value, a portion of the total pool will be swapped for Canto and staked to obtain governance power.

This provides two powerful things:

1. Staked canto receives consistent inflationary yield, some of which will flow to holders and some of which will be compounded to gain more governance power.

2. It will allow scOHM holders to indirectly participate in Canto governance, as the DAO will determine how cantOHM’s staked Canto votes on ecosystem improvement proposals.

We hope that this will create a positive feedback loop wherein, cantOHM votes help improve the Canto ecosystem, which may increase Canto’s use/value, which may increase the value of cOHM as a liquid governance derivative, which may increase cantOHMs treasury value.

In addition to acquiring Canto governance powers, canOHM may fund or acquire tokens in other projects aiming to enhance the ecosystem experience for other participants. In the future, it may also be possible to deploy cantOHM validators for Canto security, bypassing service fees charged for current ecosystem validators.

Will there always be cOHM inflation (i.e. wen will this blow up)?

We hope that after enough treasury bootstrapping, there will be the requisite cash flows (i.e. network validation and LP farming) to turn off or minimize cOHM inflation while still providing consistent yield to our holderbase.

Is cOHM backed?

Each cOHM token is backed by a basket of assets in the treasury, the portfolio of projects funded by the DAO, and any other yield generating opportunities voted in by the cohmunity.