Olympus (OHM) Research

Olympus (OHM) Research Details

Olympus (OHM) Olympus

INTRODUCTION

Olympus is a protocol for managing decentralised reserve currency (also known as non-algorithmic stablecoins). Olympus is ruled by a decentralised autonomous organisation (DAO) called Olympus DAO. A DAO is one of the most interesting parts of the DeFi world because it's basically an entity with no central leadership that is run by its users.

Olympus DAO gives users an alternative way to mine liquidity and tries to promote OHM as a currency with constant buying power. Olympus creates a free-floating market in its ecosystem by utilising the aforementioned digital asset-backed currency in a unique way. In other words, Olympus tries to make OHM immune to inflation by backing it with stable assets on the crypto market. At the same time, OHM is sold or created according to the needs of the cryptocurrency market.


HISTORY AND FOUNDER

A pseudonymous entity named "Zeus" founded Olympus. The operation team behind Olympus is still unknown. The goal is to bring attention to decentralisation by making the team a big part of the DAO. In the whole ecosystem, there are no CEOs, employees, or central authorities. The whole operation depends on DAO governance. Participants in the DAO would not be limited by any laws or rules. Instead, they would be controlled by smart contracts or the protocol's terms and conditions. In OlympusDAO, all participants work together toward the same goal, and all decisions are made based on how the participants vote.


REASON TO BUILD THE PROJECT

Stablecoins have been under a lot of scrutiny and faced an increasing number of strict rules in the last couple of years. With cryptocurrencies becoming more popular, this trend is unlikely to change. On top of that, the fact that the most popular stablecoins used today are controlled by a central authority seems to go against the point of crypto, which is that it is decentralised. The recent wave of algorithmic stablecoins tries to solve most of these problems by backing their stablecoins with algorithms instead of reserves. Without reserves, these projects don't need to be audited on a regular basis and can be run independently. But these coins still have a big problem: they're still tied to a fiat currency that's controlled by a central government. Even if algorithmic stablecoins can keep a perfect peg to their fiat currencies, which has already been hard to do, they are still in the hands of the governments that control the fiat currency.

The market's answer to this problem is the fairly new category of "non pegged stablecoins." Olympus wants to do this with their OHM token. Olympus's long-term goal is to become a stable currency that can be used in daily transactions with the reasonable expectation that prices will stay the same over time without using a traditional peg. This will be done by keeping a treasury of assets and minting and burning money.


BASE OF PROJECT

  • Staking- Staking is the principal way by which Olympus accumulates value. Users stake their OHM to earn rebase rewards, which means that their initial stake automatically increases at regular intervals (every eight hours). These rewards are paid out of the money the protocol makes from selling bonds. The amount of OHM staked and the reward rate set by the DAO's policy team determine how much each person gets.

  • Bonding- Bonding is the second way the protocol adds value, and it is seen as its biggest innovation in the decentralised finance space. Through bonding, the protocol gets its own liquidity and reserve assets, which it uses to become a decentralised digital currency with backing.

USE CASE

The use cases of OHM token are:

  • The OHM token acts as both the stable currency and governance token for the protocol. 

  • Users who buy OHM can do one of three things with it: hold onto it, bet on it, or give it to the SushiSwap OHM-DAI LP as a source of liquidity. Users can pair their OHM and DAI to make the OHM-DAI LP more liquid.

  • The OHM token can be used to quote prices for products as well as for regular transactions.

  • The OHM token is also used to vote on proposals on Scattershot. The amount of OHM a user has shows how much voting power they have.

MAJOR NEWS AND EVENTS

DATE

NEWS/EVENTS

IMPACT

10/01/2022

Due to a general feeling of negativity in the cryptocurrency market, crypto traders are moving away from experimental DeFi projects

32% Decrease

08/10/2021

Olympus DAO chases a new ATH following recent bond offerings and collaborations

+52% Increase


CONCLUSION

In the near future, the coin wants to reach a high level of stability and consistency so that it can be used as a global unit of account and medium of exchange currency. It provides appealing incentives to its holders via staking and bonding.

In conclusion, Olympus offers a new protocol with bonding and staking features that have increased the value of the OHM token. There's no doubt that the design of the protocol has contributed to the DeFi 2.0 movement. In fact, some projects have even copied Olympus' mechanisms to get the most out of them.


DISCLAIMER

Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Crypto products are currently unregulated and subject to market risk. Please seek independent financial advice or do your own research before investing.