Olympus DAO pursues new ATH after new bond offerings and new partnerships

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The rapidly evolving world of blockchain technology offers a wide range of tokenomic approaches and models aimed at solving the blockchain trilemma of creating a decentralized, stable and secure network.

One tokenomic model that has seen several variations over the past year is the ‘rebase’ model, which is designed in such a way that token balances can fluctuate over time based on changes in the price of tokens and the currency. outstanding offer.

Olympus (OHM) is a rebase project that has captured the attention of many in the crypto space over the past six months, thanks in large part to the high return offered to OHM players, which is currently over 7,000%. .

Olympus staking dashboard. Source: Olympus DAO

What sets Olympus apart from other protocols in the market, including other rebase projects like Ampleforth (AMPL), is that rather than having its primary token fluctuate around the stable price of $ 1, each OHM is a currency of algorithmic reserve backed by a basket of assets, such as DAI or FRAX, which are held in the treasury of Olympus and give the OHM an intrinsic value below which it cannot fall.

Staking and linking game theory

The primary way for Olympus users to increase the value of their wallets is to stake OHM on the protocol to earn rebase rewards.

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Rebase rewards are paid for by the proceeds of bond sales on the network and can fluctuate based on the number of bonds sold, the reward rate set by monetary policy, and the number of OHMs staked.

The long-term strategy behind staking on the network is to lock the OHM on the protocol long enough that even if the market price of the token falls below the original purchase price, the balance of the bank increases. OHM staked should eventually outpace the price drop and could potentially lead to an increase in total value.

The surety bond on Olympus is essentially a cross between a fixed income product, a futures contract and an option. Guarantees are quoted with the terms of a transaction at a future date, which include a predefined amount of OHM that the guarantor will receive upon completion of the acquisition.

These linking capabilities allow the Olympus DAO to build up its own liquidity, called POL, which is an important part of its overall design as more POL ensures that there is always locked exit liquidity in trading pools. which helps facilitate market operations and protect token holders.

Initially, the project was kicked off via a $ 500 Discord Initial Offer (IDO), and within a month of listing the price quickly rose to $ 1,487 before the general market crash of the second week of April. only brings the price down to its listing price at nearly $ 163. Even with the price falling to its lowest point, OHM’s stakes continued to stack coins over the next month.

Recently, members of the Olympus DAO team pointed out that IDO participants who had never unlocked their initial holdings would be sitting on an OHM war chest worth over $ 1 million.

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Growing cash flow and future plans

As the Olympus market grows, the protocol also generates revenue from rewards from liquidity providers, which are deposited into the project treasury.

According to the data provided by the protocol, the treasury of Olympus DAO is now holds over $ 100 million in treasury assets and is DeFi’s second largest treasure chest behind Uniswap.

Olympus has also shown that it keeps abreast of the latest developments in the crypto space as it recently hosted office hours to discuss two of the proposals facing the community: the prospect of adding LUSD to treasury and whether Olympus should roll out to the recently released Ethereum (ETH) layer two solution Arbitrum. Recently, members of the TokeMAK community voted to include Olympus DAO in its reactor network and by next month an OHM / TOKE staking pool is expected to be launched.

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OHM / DAI daily chart. Source: TradingView

It remains to be seen how rebase projects like Olympus and Ampleforth perform over time, but a quick glance at the daily chart shows the OHM price is trading at $ 1,286 and is on the verge of collapse. ” reach a new historical record.

While the concept is one of the most recent models to emerge in the crypto ecosystem, it is a development that is gaining attention as the global financial system appears to be shifting to a new monetary standard.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of TBEN.com. Every investment and trading move comes with risk, you should do your own research before making a decision.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of TBEN.com. Every investment and trading move comes with risk, you should do your own research before making a decision.