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Ketju research: Cooler Loans

RejectedPublished by Ketju Research

This file describes the economic claim, control, loss, and exit evidence. Client action and amount belong to the advisor. Not investment, legal, tax, or compliance advice.

Research summary

The research assessment is adverse because of single-collateral concentration and an undisclosed legal structure. Cooler Loans is Olympus DAO's peer-to-protocol lending facility. A borrower posts gOHM and draws a stablecoin loan directly from the Olympus Treasury at a governance-fixed rate, with no price-based liquidation. Instead, a permissionless keeper function permanently burns a defaulted loan's collateral. That design avoids liquidation cascades and is a real, verified structural strength. Olympus also clearly discloses its on-chain governance process, a roughly 12-day proposal-to-execution cycle with set quorum and approval thresholds, backed by an emergency veto multisig. But the sole collateral asset, gOHM, derives its value from OHM, a token trading roughly 98.7% below its 2021 all-time high after a well-documented collapse caused by unsustainable tokenomics. This creates severe single-asset concentration risk for any position built on the facility. No source identified a formal legal entity behind Olympus DAO or Cooler Loans specifically. The newer V2 (MonoCooler) contract also has no confirmed dedicated third-party audit apart from audits of adjacent contracts.

Observable review triggers

  • A named legal entity behind Olympus DAO or Cooler Loans specifically is disclosed
  • A dedicated, primary-source audit report specifically covering the V2 MonoCooler contract is published
  • Additional collateral assets beyond gOHM are approved, reducing single-asset concentration
  • gOHM/OHM demonstrates sustained price stability over a full market cycle, reducing the volatility this registry weighs against the collateral quality

Facts on file

Verdict
Rejected
Type
Other
Chains examined
Ethereum
Reviewed
Last confirmed

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