Olympus DAO chases a new ATH after fresh bond offerings and partnerships

Blockchain technology is rapidly changing and there are many options and tokenomic models that can be used to solve the problem of creating a secure, decentralized and stable network.

The’rebase’ tokenomic model has been a popular choice for many tokenomic models over the past year. It is designed so that token balances can change over time depending on the changes in token prices and supply.

Olympus (OHM), a rebase project, has attracted the attention of many people in the crypto space in the past six months. This is due to the high yield OHM stakers are currently receiving which is currently over 7,000%.

Olympus staking dashboard. Source: Olympus DAO

Olympus is different from other market protocols, including other rebase projects such as Ampleforth (AMPL). Instead of having its main token fluctuate around $1 USD stablecoin prices, each OHM acts as an algorithmic reserve currency. It is backed by a collection of assets like DAI and FRAX that are kept in the Olympus Treasury. This gives OHM an intrinsic value that it cannot fall below.

Theory of bonding and stake

Olympus users can increase their portfolios’ value by staking OHM on Olympus protocol to earn rebase reward points.

Rebase rewards are paid out of the proceeds of bond sales on the network. They can fluctuate depending upon the number and reward rate of bonds sold and OHM staked.

Long-term strategy for staking on network includes locking OHM on protocol long enough that, even if market price drops below initial purchase price, the growth in OHM staked should eventually outpace price falls and could lead to an increase of total value.

Bonding on Olympus can be described as a combination of a fixed income product and a futures contract. Bonders receive terms to trade at a future time. These terms include an OHM amount that the bonder will get once vesting has been completed.

These bonding abilities allow the Olympus DAO, also known as POL, to build its own liquidity. This is an important aspect of its overall design since more POL means that there is always locked exit liquidity for trading pools. This helps facilitate market operations and protects token holders.

Initial discord offering (IDO), $500, was used to launch the project. Within a month, the price rose quickly to $1,487, before the market crash in April caused the price to drop to near $163. OHM stakers kept stacking coins despite the swing low price.

The $OHM presale is now worth $2.5m if you held it There are less than ~5 people that did pic.twitter.com/ruYiLKgJ92
— Jawsus Christ (@sayinshallah), October 8, 2021

Members of the Olympus DAO Team pointed out recently that IDO participants who did not stake their initial holdings would still be sitting on an OHM war chest worth over $1 million.

Related: Treasury plans to crack down on stablecoins even as Tether loses its dominance

Future plans and growing the treasury

The Olympus market is growing, and the protocol also earns revenue from liquidity providers rewards. These are deposited into project’s Treasury.

The protocol provided data that Olympus DAO treasury holds more than $100 millions in treasury assets. It is second in DeFi after Uniswap.

Olympus also demonstrated that it is staying on top of crypto developments by hosting office hours recently to discuss two proposals before the community. These were the possibility of adding LUSD into the treasury, and the question of whether Olympus should use the newly released Ethereum (ETH), layer-two solution Arbitrum. Members of the TokeMAK community recently voted to include Olympus DAO into its reactor network. A OHM/TOKE stake pool is expected to launch within the next month.

Daily chart of OHM/DAI TradingView

Although it remains to be seen how Olympus or Ampleforth rebase projects will perform over the long-term, a quick glance at OHM’s daily chart shows that the OHM price is at $1,286. This means that OHM could soon surpass all-time highs.

Although the concept is relatively new in the crypto ecosystem it is still a significant development as the global financial system seems to be moving to a new currency standard.

com. You should do your research before making any investment or trading decision.

com. You should do your research before making any investment or trading decision.

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