Fundamental to Olympus’ long term success however, is whether it can convince the cryptoverse that it needs a reserve currency. The protocol’s early success has also inspired many fork projects, such as Klima DAO, Wonderland, Snowbank and Gyro. The protocol will make concerted investing in stocks efforts to attract a greater number of users to the platform. Both the decentralized exchange industry and the decentralized finance sector are experiencing rising levels of popularity. The DeFi and the decentralized stablecoin sector is growing exponentially.
How Many Olympus (OHM) Coins Are There in Circulation?
The community governs Olympus DAO with members presiding on the forum and token holders snapshot voting. DAO members use governance tokens to vote on essential protocol topics like treasury functions and partnerships. Furthermore, the protocol is always looking for new contributors. So, to participate, users can join the Olympus Forum or the Discord channel. Olympus DAO uses what’s called “protocol-owned liquidity” (POL). It has a protocol-managed treasury and, as mentioned, a bond mechanism and staking rewards to control supply expansion.
The best articles, podcasts and other resources to learn about investing in the OlympusDAO ecosystem
In fact, Olympus has also launched their Bonds-as-a-Service (BaaS) offering, known as Olympus Pro, to help other protocols own more of their own liquidity. While this is a common monetary policy lever in the traditional world, it remains relatively untested in DeFi and the crypto industry as a whole. Thus far most projects have focused on only setting the rate of return in liquidity pools. How OHM investors and the broader crypto industry react to changes in monetary policy would be interesting to observe. There are philosophical but also practical questions when it comes to picking the types of assets to be included as part of the Olympus treasury.
- Hence, Olympus DAO’s organizational structure is not strictly hierarchical.
- This is done through the initial sale and distribution of OHM, as well as subsequent issuance of “bondings”.
- And as the Treasury continues to grow (via bond sales), Olympus will have an even greater ability to reward its stakers.
- However, such assets may not generate great returns to satisfy investors, and the protocol could consider taking in other assets which might be more high yielding.
- Also, users can provide liquidity pool (LP) tokens or DAI to the protocol and receive discounted OHM tokens in return, which are subject to a vesting period.
Step 1: Download Trust Wallet
The Olympus protocol has its token—OHM, and trades within the value of a DAI. Owing to being backed by DAI, it can be said that the coin will not trade below its core value in the long run. If you want to invest in this project, you’ll need to understand how to buy Olympus, and this is what we address in this guide.
Olympus leverages the mechanisms of Protocol Owned Liquidity (POL), Range Bound Stability (RBS) and Cooler Loans to create a robust, flexible, censorship-resistant, and smart money. Navigate volatile markets with the help of Range Bound Stability (RBS). Olympus’ automated monetary policy provides predictability and transparency, giving you confidence to make informed investment decisions.
The (3,3) notation refers to a piece of game theory relating to different actions that can be taken in the protocol. In the event that the OHM token falls below the value of one DAI, the Olympus treasury would perform a buyback and burn OHM tokens until the price rises to one DAI. This means that the OHM token can always trade above the price of one DAI since there is no upper price limit to the asset. This is a project you may have heard of, because it has a very high APY and (3,3) profiles are all over Twitter. OHM is a free-floating money that is subject to the Range Bound Stability (RBS) system.
With POL, Olympus can avoid all that and actually make a profit of its liquidity. As Olympus notes in its docs, “Staking is the primary value accrual strategy of Olympus.” OHM holders take their OHM and stake it on the Olympus website to earn rewards. The level of rewards earned for staking OHM depends on the number of OHM that’s staked in the protocol as well as the reward rate that’s determined by the DAO’s monetary policy. By promising a high rate of return (APY) on their staking pool (and pushing their (3,3) game theory meme), Olympus encourages existing OHM holders to stake their OHM. This also encourages investors to either buy OHM from the market or perform more bondings with the protocol for more OHM.
Now that you understand the basics of OHM, you may be interested in purchasing the token.
After the recent decentralized exchange and DeFi boom, most projects, including Olympus DAO saw their biggest rise in adoption. You can use your debit card to buy Olympus tokens with ease if you have Trust Wallet. First, complete the mandatory KYC process, input your card details and buy a base cryptocurrency like Binance Coin.
Hence OHM is a “backed” cryptocurrency, not a “pegged” one. Furthermore, by focusing on supply rather than price, Olympus DAO believes OHM can hold its value even in the face of market volatility. Nonetheless, all of these should not be taken as a direct criticism of POL, but rather the possible excessive accumulation of liquidity by projects. Projects can consider POL, but also in combination with other liquidity mechanisms which do not ask users to give up their capital. In a multi-chain reality however, a basket-of-crypto assets type reserve currency such as OHM may well prove to be useful.
By incentivizing users to stake OHM, the token supply stays off-market. When the protocol mints new OHM tokens, the majority get distributed to the stakers. It is important to note that while they have a similar name, the “bondings” introduced by Olympus are not the same as bonds commonly understood in the traditional finance world. Bonds are debt obligations https://forexbitcoin.info/ which have fixed tenor and coupon (think of it as a loan), where issuers have to repay their investors their principal and coupon at the end of the tenor. Olympus’ “bonding” however, is more akin to a discounted token sale. Investors sell their assets for OHM at a discount, but OHM itself generates no returns unless staked, or through price appreciation.
As they accrue more and more governance tokens, they’ll become an increasingly important voice in governance decisions and can vote in ways that will favor OlympusDAO and OHM holders. A similar dynamic will play out as Olympus starts accepting more types of tokens in their bonding process. If Olympus is successful, it’ll become a DAO governance juggernaut. The team designed OHM to be a stable reserve currency using economics force. An algorithm is used to rebalance the supply of OHM tokens in the market in order to maintain the peg. Olympus (OHM) aims to become a decentralized reserve currency that is community owned, governed by a DAO, and backed by decentralized assets.
Soon after Olympus also introduced bondings for other LP tokens, as well as other treasury assets such as DAI, FRAX, etc. Olympus was established on the premise that pegging a coin directly to the US dollar can make the token’s stability vulnerable to any decline in the dollar. As such, the developers sought to do something differently. So instead of opting for the commonly used USD, the coin is pegged to DAI, the leading stablecoin that’s backed by cryptocurrency collateral.
Users can stake OHM tokens and LP tokens to receive automatically compounded OHM token rewards. In the end, stablecoins are still pegged to a government-controlled asset, the US Dollar. Depending on your beliefs about inflation and monetary policy, that may or may not be a good thing. Central bankers may or may not have your best interests in mind; when they do print money, it tends to most benefit the rich, those who already own assets like stocks and bonds. As money flows into the market, it drives asset prices up, increasing the wealth of asset owners. Also, there’s the Cantillon effect – when money is printed, it’s not distributed evenly.
Stablecoins (USDC, USDT, and DAI, to name a few) are managed either by centralized companies (Coinbase manages USDC) or by DAOs (MakerDAO manages DAI). When you go buy 1 USDC from Coinbase, they’ll take your US Dollar and hold it as value that “backs” your USDC. Because each USDC is backed by 1 USD, you can be sure that there’s real value backing your token. The content of this webpage is not investment advice and does not constitute any offer or solicitation to offer or recommendation of any company, product, or idea.
The wallet provides you with a 24-word phrase that you can use to retrieve your assets if your hardware wallet goes missing. Ledger Nano X is also accessible, user-friendly, and affordable. Whether you are holding a large or small quantity of Olympus tokens, you will need a suitable wallet to store them.
Because of the spread that I mentioned above, Olympus is able to offer a discounted price on OHM while still earning a significant profit. The user wins because they get a better price than they would get on an exchange like Sushiswap. The protocol wins because they’re then able to control their liquidity (more on this in the next section). Olympus is a decentralized reserve currency protocol based on the OHM token. In essence, the price of the OHM token is one DAI, plus a premium, with the market deciding what this premium is. Other projects to adopt this model include Klima DAO and Wonderland Money.
Accordingly, the project aims to offer a currency that retains its purchasing power, even when facing market volatility. Staking is the “primary value accrual strategy” throughout the Olympus crypto ecosystem. By staking the native OHM token, users of the platform can earn a passive income with crypto in the form of rebase rewards. Accordingly, staking rewards vary depending on the amount of OHM tokens staked within the protocol and the parameters of the economic policy. Also, the staking mechanism helps to regulate the supply and expansion of the OHM token supply.
As at the time of writing in late July 2021, one Olympus token costs just over $500. In conclusion, the most suitable way to buy a Defi coin such as Olympus is to use a DEX like Pancakeswap. Aside from the numerous features of this DEX, it ensures that you don’t face any third-party interference when buying your Olympus tokens. In addition, Ledger Nano X stores your Olympus tokens offline and lets you carry out all your sales and purchases with ease.
Furthermore, protocol governance is under the control of a decentralized autonomous organization (DAO). Olympus has been called one of the most interesting economic experiments in the DeFi space for several reasons. Olympus owns a treasury that mints and sells new OHM when it is trading above its price floor of 1 DAI and buys back and burns OHM when it is trading below that.
The platform offers clients “infrastructure, expertise, and exposure” to facilitate sustainable liquidity mining solutions for self-sustaining decentralized economies. Users can also choose to stake OHM, which reduces the supply of OHM on the open market and creates value for the protocol. Staking rewards are extremely high on Olympus and note north of 7,000% APY at the time of writing, down from over 100,000% at the beginning of the protocol. Moreover, staking rewards auto-compound every eight hours. The goal of these high rewards is to reward users for accumulating more OHM instead of hoping for an appreciation of OHM in USD terms. The protocol acknowledges that the price of OHM could, and potentially should, come down in dollar terms in the long run.
When it thinks the token is overvalued, it mints new coins to decrease the value of all coins. Crypto token holders, on the other hand, have the opportunity to earn incentives by taking part in liquidity pools and a variety of other DeFi products. There is significant interest in the decentralized financial market from both retail and institutional investors. The sector is booming, and there are constant developments happening inside it, but due to its quick expansion and lack of oversight, it is open to abuse.
The Nano X is for more advanced users and gives users more ability when trading crypto. Ledger is a hardware wallet that supports ERC-20 tokens, including OHM. Hardware wallets offer an extra level of security to crypto investments as the physical device must be present in order to send crypto.
However, Olympus Pro makes it simple for projects to generate their own liquidity, maximize value for the platform, and reduce unnecessary expenses for users. Also, clients can tailor bonds to the specific requirements of a project and free up time to focus on developing great products instead of complex tokenomic structures. On a protocol level, the Olympus ecosystem consists of four key pillars. These are the protocol-managed Olympus treasury, protocol-owned liquidity (POL), a bonding mechanism, and OHM token staking.
Whether this happens eventually is closely linked to the other four metrices we mentioned earlier. Stablecoins are now an essential part of the DeFi ecosystem. This is largely thanks to their lack of price volatility compared to assets such as BTC and ETH, for example. However, just because stablecoins are price-pegged to a fiat currency does not mean that they are immune to the effects of inflation and government manipulation. As such, stablecoins can lose their purchasing power over time if fiat currencies are debased or otherwise depreciate.
This allows any projects to maintain stronger liquidity through a bond market and reward bond sellers with their own tokens. Olympus DAO is off to a good start in reaching its ambitious reserve currency goals. If you’re still unsure about stablecoins, DAOs, and other topics, check out the Crypto For Beginners course at Moralis Academy. It’s the best place to start learning about cryptocurrencies.
Comparatively, the current price is -99.10% lower than the all-time high price. The trading volume of Olympus (OHM) is $478,620.41 in the last 24 hours, representing a -12.50% decrease from one day ago and signalling a recent fall in market activity. Sign up to our newsletter and stay up to date on new features and exciting new projects. Olympus DAO boasts a fun community embracing greater economic cooperation in Web 3.0.
In fact, they’ll make more profit selling OHM the higher the price gets (as we’ll see with their bonding mechanism). Remember, OHM is backed, not pegged; it has no obligation to follow the US Dollar as other stablecoins do. Furthermore, Olympus Pro features a sleek user interface (UI) for simple bond management.
Trả lời