Curated Resource ( ? )

Olympus DAO | The Decentralized Reserve Currency

Curated: 20/11/2021 from
Olympus DAO | The Decentralized Reserve Currency

my notes ( ? )

"Olympus is building a community-owned decentralized financial infrastructure to bring more stability and transparency for the world.... Olympus was ideated by Zeus and built by a distributed pseudo-anonymous team."

Sees itself a a "store of value: ... Stablecoins are vulnerable to inflationary policies, while Bitcoin or Ethereum suffer from market crashes or manipulation... an algorithmic reserve currency backed by other decentralized assets".

Poorly explained for newcomers: "Bond sales and LP Fees increase Treasury Revenue and lock in liquidity and help control OHM supply ... Treasury inflow is used to increase Treasury Balance and back outstanding OHM tokens and regulate staking APY" ...??

Cue the video: - they're establish token (Ohm) as a crypto reserve currency, with all owners setting policy via the OlympusDao. Ohn tokens are backed by a treasury of other cyrptocurrencies.

The DAO's protocol runs the show: if the value of ohm rises above the value of the backed assets in the treasury, it mints & sells more coins to increase supply. If it goes below, DAO buys back and burns Ohm. Hence a stable floating value which never dips below the value of the backed assets in the treasury. It also buys bonds for its treasury in return for ohm at a discounted price.

So you can:

  • "stake your ohm... yields compounded automatically"
  • sell bonds in return for ohm at a discount

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