The OHM cryptocurrency is a psychological experiment that’s slowly turning into a genuine economic asset. The cryptocurrency’s stabilizing forces have been a tad greater than the doubters’ hopes. This is a good thing, as OHM may have a longer life than many doubters would like. Its supporters, known as OHMies, are basement-dwelling dorks and silly frogs.
OlympusDAO
OlympusDAO’s cryptocurrency is known as the OHM. The token is transferable at a 1:1 ratio and burns if unstaked. It is distributed three times per day and compounded every eight hours. As it is backed by digital assets, it will not fluctuate. This makes it a stable currency, and is backed by the trust of investors. Its users can earn OHM as they stake or sell it.
The OlympusDAO’s community controls the OHM currency. Its main aim is to control volatility, but keep the price stable. Most stablecoins peg the value of the underlying asset, but OlympusDAO employs a proprietary system to keep the value stable. The project aims to create a thriving economy for everyone’s benefit. Ultimately, it will be possible for everyone to earn from the OHM.
Olympus’s treasury
Olympus‘ treasuries represent the assets controlled and owned by the protocol. They define internal classifications for all the assets that are part of the protocol. These classifications are based on the protocol’s budget for various market operations. Treasury Reserves represent the total budget of the protocol’s liquidity. These funds guarantee that the market is liquid. Olympus aims to establish a gold standard for its treasury.
The Olympus community uses a saying that time is money. If you invest in OHM now, you can expect to see it double in value by the time you reach maturity. The APY on the Olympus treasury is 7,000%, making it a mind-blowing investment. However, many in the community are questioning the currency’s stability, and accuse the project of being a Ponzi scheme. Olympus, however, focuses on providing a secure and backed currency, not a pegged or manipulated one.
Staking
The OlympusDAO project offers a bonding solution for Olympus. A bond buyer acquires OHM from the protocol for a discounted rate over a five-day vesting period. The user then can stake the coins to increase their share of the network or sell them on the secondary market to pocket the discount rate. OlympusDAO is a perpetual capital vehicle, meaning that it can receive a variety of tokens and assets in exchange for OHM.
Staking rewards on OHM are incredibly high. At the time of writing, the reward for holding OHM has risen above 8,000% APY. This is made possible by the discrepancy between market OHM and its backing per OHM. For example, backing per OHM is $191 while market OHM is $1,190. This price discrepancy allows OHM to dilute its supply through increased issuance, which helps reduce price volatility. This, in turn, benefits stakers by keeping rewards high. By keeping rewards high, participants continue to stake more and get more rewards.
Bonding
The Olympus team has launched a new bonding as a service product known as OlympusPro. With a 3.3% fee on bond payouts, the product has already generated interest across several blockchains. OlympusPro may be the next big thing in DeFi, but it might also become controversial when politicians talk about stabilizing the price of crypto. In this article, we’ll take a look at how the new product works.
To begin, OHM is backed by $170 in assets. This amount grows by $170 on 12/1. Then, incremental purchases are backed by the Market Price less a small discount. In this way, the user can earn a reasonable return by selling the OHMs at a small discount. As such, a single transaction of a bond is worth $820 in assets, resulting in a 17% discount.
APY
Initially, OHM was a psychological experiment, but it’s slowly gaining ground as an economic asset. Its stability is also aided by its treasury, which earns profit through bonding. Staking is another way to earn rewards from OHM, as it puts cryptocurrency to work for rewards. But before you start staking your OHM tokens, you must understand how the OHM system works.
OHM staking rewards are incredibly high, currently exceeding 8,000% APY. This is made possible by a price discrepancy between market OHM and the backing per OHM. In this scenario, one market OHM is worth $1,190 while backing per OHM is valued at $191. This price discrepancy provides a significant runway for OHM to dilute its supply through increased issuance. This reduces volatility and benefits stakers by keeping rewards high. Moreover, it also encourages participants to stake more.
Price
Price of OHM has declined by over 60% from its launch price in spring 2021. OlympusDAO handles the decentralized reserve currency. It is also known as a deadcoin. Investors are advised to exercise caution and not invest more than they can afford to lose. The price of OlympusDAO can go up or down based on market conditions. Investors should keep in mind the risks and benefits of investing in OlympusDAO.
OlympusDAO has implemented a protocol that detects the demand for more OHM. Olympus treasury constantly mints OHM as staking rewards and sells them through a bonding process. By making use of the OlympusDAO app, token holders are encouraged to stake their OHMs to earn more OHM. The bonding sales also help create liquidity for OHM.