Olympus DAO Is Chasing A New ATH After New Bond Offerings And Collaborations
The price of OHM is on the verge of reaching a new high after a series of cross-platform integrations, new bond offerings, and the launch of Olympus Pro demonstrates that the project has strong fundamentals. The rapidly evolving world of blockchain technology offers a diverse set of approaches and token comic models aimed at resolving the blockchain trilemma of establishing a decentralized, stable, and secure network.
The ‘rebase’ model, which is designed so that token balances can fluctuate over time depending on changes in the token price and supply in circulation, is one token comic model that has seen several variants over the past year. Olympus (OHM) is a rebase project that has piqued the interest of many in the crypto space over the last six months, thanks in large part to the high yield offered to OHM stakeholders, which is currently above 7,000 percent.
What distinguishes Olympus from other protocols on the market, including other rebase projects such as Ampleforth (AMPL), is that instead of having its main token fluctuate around the stable coin price of $1 USD, each OHM is an algorithmic reserve currency backed by a basket of assets, such as DAI or FRAX, that are held in the Olympus treasury and give OHM an intrinsic value below which it cannot fall.
Staking And Bonding Game Theory
Olympus users increase their portfolios’ value by staking OHM on the protocol to earn rebate rewards.
Rebase rewards are paid for by the proceeds from bond sales on the network and can fluctuate depending on the number of bonds sold, the reward rate set by monetary policy, and the number of OHM staked.
The long term strategy behind staking on the network involves locking OHM on the protocol long enough so that even if the market price of the token drops below the initial purchase price, the increase in the balance of staked OHM should eventually outpace the fall in price and could potentially lead to a rise in total value.
Bonding on Olympus is a hybrid of a fixed income product, a futures contract, and an option. Bonders are quoted with terms for a future trade that includes a predetermined amount of OHM that the bonder will receive once vesting is completed.
These bonding capabilities enable the Olympus DAO to accumulate its liquidity, known as POL, which is an important part of its overall design. More POL ensures that there is always locked exit liquidity in trading pools, facilitating market operations and protecting token holders.
The project initially launched with a $500 initial Discord offering (IDO), and the price quickly rose to $1,487 within a month of listing before the market-wide crash in the second week of April pushed the price back to its listing price near $163. Despite the fact that the price had dropped to a swing low, OHM holders continued to accumulate coins over the next month.
Members of the Olympus DAO team recently pointed out that IDO participants who never understood their initial holdings would be sitting on an OHM war chest worth more than $1 million.
Growing Treasury and Plans
As the Olympus market expands, so does the protocol’s revenue from liquidity provider rewards, deposited into the project’s treasury.
According to protocol data, the Olympus DAO treasury now has more than $100 million in assets and is the second-largest treasury in Defi, trailing only Uniswap. Olympus has also demonstrated that it is up to date on the latest developments in the crypto space by hosting office hours to discuss two of the community’s proposals: the possibility of adding LUSD to the treasury and whether Olympus should deploy to the recently released Ethereum (ETH) layer-two solution Arbitrum. Members of the TokeMAK community recently voted to include Olympus DAO in its reactor network, and an OHM/TOKE staking pool is expected to launch within the next month.
It remains to be seen how to rebase projects such as Olympus and Ampleforth will fare in the long run, but a glance at the daily chart shows that OHM is currently trading at $1,286 and on the verge of setting a new all-time high.
While the concept is one of the more recent models to emerge in the crypto ecosystem, it is a noteworthy development as the global financial system appears to be in the process of transitioning to a new currency standard.
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While other crypto assets fluctuate with market volatility, one project has steadily risen in the background.
The price of Olympus DAO has increased by more than 160 percent in the last month as interest in the project grows. The OHM token is currently trading at $1,224, approximately 13.6 percent lower than its all-time high of $1,415 set earlier this year in April. During the May market crash, the project took a significant hit, losing nearly 90% of its value and falling to an all-time low of $162. It has since recovered with vigor. The Defi protocol that issues the fully collateralized, free-floating OHM token is Olympus DAO. The ultimate goal of the project is to create a stable crypto asset. However, given the OHM token’s historical price swings, this may appear counterintuitive.
The current volatility is deliberate in the early stages of the project. The DAO’s current goal is to increase the supply of OHM tokens first, with stabilization coming later. Olympus DAO has created a clever token comic system to attract new users and provide value to increase the token supply. The DAO works by allowing users to bind other crypto assets to the protocol, such as MakerDAO’s Dai stablecoin, in exchange for newly minted and discounted OHM tokens. This attracts assets to the DAO, which are then used to generate yield.
OHM token holders can stake their tokens to receive the DAO’s yields, incentivizing them not to sell their OHM. This, in turn, increases confidence in the project’s future as yields continue to rise. When the OHM token yield rises, the market places a higher value on the tokens, causing the price to rise. This encourages more people to bond their assets in exchange for discounted OHM, bringing the full cycle circle.
This token comic “flywheel” will only function if sufficient people use the protocol to set it in motion. Olympus DAO has attracted users due to its active community and the project’s meme culture.
On social media, many supporters of Olympus DAO (dubbed “Ohmies”) use the (3, 3) suffix in their names to show their support for the project. The (3, 3) tag refers to the game theory that governs how the project operates. When a user stakes OHM tokens, it is viewed as a +3 positive for the DAO because it creates scarcity, raising the price of OHM. If all DAO participants choose to stake their OHM, the net positive for all token holders is maximized, as represented by (3, 3).
Furthermore, Olympus DAO has inspired a number of similar projects. The recently launched TempleDAO takes inspiration from Olympus’ meme culture. At the same time, Defi 2.0 pioneer Daniele Sesta created Wonderland, a direct fork of Avalanche, which has received the approval of the Olympus DAO team.
The OHM token price appears to be strong right now, with more trading volume than ever before. While tokenomics suggest that the price will rise further, critics have compared the protocol to a Ponzi scheme. It remains to be seen whether Olympus DAO can maintain its current rate of growth.