Evaluation of the project Olympus DAO (OHM coin)

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2021-11-04 03:17:06

Olympus Knife

What is Olympus DAO?

Olympus is a decentralized reserve currency protocol based on the OHM token. Each OHM token is backed by a pool of assets (be it coins, altcoins, stablecoins or LP tokens) in the Olympus Treasury, allowing the intrinsic value of OHM to remain stable at all times.

Olympus is building a community-owned decentralized financial infrastructure to bring more stability and transparency to the world. A policy-controlled monetary system, where the behavior of the OHM token is highly controlled by the DAO. In the long run, the project can be used to optimize stability and consistency so that OHM can function as a global unit of account and currency exchange. In the short term, the project intends to optimize the system for growth and wealth creation.

What problems does the Olympus DAO solve?

If you are in the DeFi market, you will usually be familiar with the operation of Yield Farm, which provides liquidity for a pair of tokens on the DEX AMM exchange. And then use the LP token received to go to Farm to receive rewards. The essence of this Farm operation is to encourage you to provide liquidity to the project, because the project wants to reduce the price volatility of tokens due to the difference in supply and demand in AMM’s Pool, thus hiring liquidity providers. or reward liquidity providers. This causes problems:

  • The sustainability of the token is not there, because the user after receiving the reward then returns to the exchange to sell the token to recover the capital.
  • The second is that the nature of liquidity provision is geared towards high rewards, not towards the growth of the token trust as well as the development of the platform.
  • Perpetual Loss (IL): The success of a protocol also causes an increase in the price of its native token, resulting in a significant impermanent loss scenario for liquidity providers. This bias devalues ​​long-term LPs, even if they are long-term believers in the protocol.

Olympus protocol solves this problem as follows: instead of staking their LP Token (liquidity provider) for farming rewards in pool 2 (here, pool Farm), users use LP tokens exchange in exchange for the protocol’s governance token at a discount (OHM example here). This is done through a process known as Bonding. Redemption of tokens at a discount and further staking to earn profits leads to increased demand for token holdings. Furthermore, since the protocol never sells these LP tokens, liquidity is locked in its coffers. And the ability to accumulate liquidity increases over time.

This design creates confidence in the future of the project when profits are constantly increasing. The market values ​​the token higher, pushing the price up. Leading to more people using their assets in exchange for discounted OHM forms a cyclical loop.

Outstanding features of the project Olympus DAO

Olympus DAO is managed by the community. Community owned and the entire protocol will be decided by the community

OHM is designed to add value. OHM is backed by a growing, income-generating treasury. The project has created a currency that can continuously increase its purchasing power regardless of market conditions.

Liquidity is protected. Olympus LP is owned and protected by Olympus itself. Olympus owns almost all of the liquidity, helping to maintain price stability and treasury income. With the liquidity owned by the protocol, Olympus is protected from unpredictable and adverse market conditions due to its longevity and efficiency.

How Olympus Works

First Treasury revenue comes from Bond & LP (Liquidity Provider) fee: through Bond Sale (or buyer will exchange LP for Bond) and Fee collected from providing LP liquidity will increase Treasury revenue and lock in liquidity and help control the supply of OHM.

Subsequent treasury growth through treasury inflows is used to increase treasury balance and return outstanding OHM tokens and adjust APY staking.

Staking rewards are OHM tokens, auto-settled by Compounds for automatic profit through a treasury-backed currency with intrinsic value.

Olympus monetary policy tools

Olympus has two main mechanisms used by the protocol to accomplish Olympic monetary policy goals: Staking and Bonding (Bond).

Staking

Staking is Olympus’s primary value accumulation strategy. Producers stake their OHM on the Olympus website to earn rebase rewards. The rebase reward comes from the proceeds from the Bond sale and can vary based on the amount of OHMs set in the protocol and the reward rate set by monetary policy.

When you staking, you lock OHM and receive an equal amount of sOHM (at a 1:1 ratio). Your sOHM balance will automatically increase again at the end of each period. sOHM is transferable and therefore can be combined with other DeFi protocols.

Stake Your OHM (3, 3): stake allows you to earn OHM passively through auto pooling. By staking your OHM with OlympusDAO, in return you will receive sOHM (OHM staked) at a ratio of 1:1. After that, your sOHM balance will automatically increase every period based on the current APY.

Staking
Staking

Bonding

Bonding is Olympus’s secondary value accumulation strategy. It allows Olympus to obtain its own liquidity and other reserve assets such as LUSD by selling OHM at a discount in exchange for these assets. The quote protocol binds to terms such as the Bond price, the amount of OHM tokens to be enjoyed from the link, and the claim duration. Affiliates can claim some rewards (OHM tokens) when they give and at the end of the confirmation period, the full amount will be claimed.

Bond allows Olympus to accumulate its own liquidity. The project called its own liquidity POL. Adding a POL ensures there is always locked exit liquidity in our trading pools to facilitate market activity and protect token holders. Since Olympus became its own marketplace, in addition to additional certainty for OHM investors, the protocol accumulates more and more revenue from LP rewards strengthening the project’s coffers.

Buy 1 Bond (1,1): Bond allows users to purchase OHM from the protocol at a discounted price by trading it for i) liquidity (LP tokens) or ii) other assets. The first Bond is called the Liquid Bond and the Second Reserve Bond.

Bonding
Bonding

Olympus includes Bond types such as:

  • Bond DAI.
  • Bond FRAX.
  • Bond wETH.
  • Bond LUSD.
  • Bond OHM-DAI LP.
  • Bond OHM-FRAX LP.
  • Bond OHM-LUSD LP.
Bonding Olympus Knife
Bonding Olympus Knife

Stake LP Tokens: Placing LP Tokens on OlympusDAO allows you to earn OHM passively. Every day, a fixed amount of OHM will be distributed among investors based on the proportional share of staked LP tokens.

How to join Olympus without losing

And since each person participating in this table will have 3 moves (Stake, Bond, Sell Tokens) so we will have a summary table as shown below. The numbers -1, 1 and 3 represent the benefits that each player receives, respectively. The example below is temporarily divided into 2 players to simplify the problem.

How to join Olympus without losing
How to join Olympus without losing
  • If both of them Stake, then of course enjoy a high profit, the token is not sold off and the price also increases.
  • If both are with Bond, the gain is not too high (1;1), but it still brings value to the platform, as the funds they claim in Bond will be used and create value for the Treasury (DAO’s reserve fund).
  • If both are for sale, this is the worst case scenario and can lead to platform crash.

However, if the game design is like this, it is inevitable that the traces of many previous farming projects can be avoided. Simply because every player participating will have a “Farm-Stake” strategy early on, enjoy high profits and gradually move to the “Sell” box.

=> Learn Game Theory Olympus DAO?

What is OHM Token? Basic information about OHM . Token

OHM is the native token of the Olympus DAO decentralized platform and is used in the following cases:

  • Propose and vote on important project changes.
  • Products and rewards.

Basic information about OHM . Token

  • Token Name: Olympus DAO Token
  • Ticker: OHM
  • Token Type: Utility, Governance
  • Blockchain: Ethereum
  • Token Standard: ERC-20.
  • Token address: 0x383518188c0c6d7730d91b2c03a03c837814a899.
  • Supply of circulation: 3,453,791 OHM.
  • Total supply: 4,293,328 OHM.

The development team of the project Olympus DAO

Olympus DAO operates independently so anyone can become a contributor to the project by joining the community.

Investors

Olympus Investor DAO
Olympus Investor DAO

Project Partner

Olympus DAO is working with Partners to support Olympus’ ecosystem such as Frax Finance, Rari Capital, Abracadabra.money, ….

Partner of Project Olympus DAO
Partner of Project Olympus DAO

Where to buy, sell, trade Olympus DAO (OHM)?

OHM tokens can be traded on exchanges such as Gate.io, Uniswap, Sushiswap, MEXC, Hotbit, …

Where is the Olympus DAO (OHM) stored?

OHM is Olympus’s ERC20 token. Some wallet applications can be used for storage such as CHK Wallet, Trust Wallet, Metamask Wallet, .. In addition, you can save directly on its listed exchanges.

Evaluation of the Olympus DAO project, should you invest in OHM coin?

Olympus DAO is a future decentralized reserve currency protocol, Olympus is still in the process of finalizing other pieces of the project. However, the current parameters show that the project token price is being held up. blows up quite high compared to the value being insured. All information in this article is researched by CHK and does not constitute investment advice. CHK is not responsible for any direct and indirect risks. Good luck!


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