# Why Ketju rejected Cooler Loans

- URL: https://riadefi.com/rejections/cooler-loans/
- Exposure: other
- Memo version: v1
- Reviewed: 2026-08-19
- Next review: 2026-11-19

## The memo

REJECTED ON SINGLE-COLLATERAL CONCENTRATION AND 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 — a defaulted loan's collateral is instead permanently burned by a permissionless keeper function. That no-liquidation-cascade design is a real, verified structural strength, and Olympus's on-chain governance process (a roughly 12-day proposal-to-execution cycle with defined quorum and approval thresholds, backed by an emergency veto multisig) is genuinely disclosed. 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 unsustainable-tokenomics collapse — a severe single-asset concentration risk for any position built on this facility. No formal legal entity behind Olympus DAO or Cooler Loans specifically was found in any source, and the newer V2 (MonoCooler) contract has no confirmed dedicated third-party audit distinct from the adjacent contracts that do carry one.

## What would reopen the file

- 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

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Published by Ketju Research (https://ketjuresearch.com). Educational analysis only; not legal, tax, compliance, or investment advice.
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