Olympus DAO is governed by the holders of OHM tokens.The protocol stabilizes OHMs value by controlling the OHM supply.In addition, its DAO-governed treasury consists of unique DeFi assets such as stablecoins DAI, FRAX, which allows Olympus DAO to create a credible price floor. Olympus DAO owns its liquidity instead of depending on users to provide liquidity.The protocol has certain unique features that ensure that the OHM token acts as a store of value, not pegged to the $1 mark.
LIQUID LEDGER DEMO FREE
The Risk Free Value (RFV) determined by the nominal value of the treasury-held assets is basically the 'true floor' for OHM, discounting unaccounted risks. Despite this, the price of OHM has been ‘free-floating’, changing as per the supply/demand in the free market. Similarly, if the value of OHM falls, the protocol buys back and burns OHM from the supply to increase price. When the value of OHM outpaces the reserve’s floor value (trading at a premium), the protocol could mint new tokens and dilute supply to drop the price. The current market cap, as of April 2022, is about $500M with OHM token trading at $31. In 2021, Olympus caught the attention of many crypto users, growing to a market cap of $4B in just over 6 months. This means that all potential decisions or actions are formed by community members on the forum and then voted on and acted upon by token holders through snapshot voting.
As constructed, Olympus completely is DAO-governed. DAI, FRAX) in the Olympus treasury, giving it an intrinsic value that it cannot fall below.”Ĭreated by Zeus (pseudonym), and built by a distributed pseudo-anonymous team, it was introduced on February 1, 2021. Each OHM token is backed by a basket of assets (e.g. As defined in their website, “ Olympus is a decentralized reserve currency protocol based on the OHM token. Olympus DAO set out to address one of the major problems of the crypto ecosystem – reducing cryptocurrency’s dependency on fiat currency and providing sustainable liquidity for native tokens. Created to provide a new decentralized infrastructure for finance that is community-driven, Olympus DAO was ubiquitous with the (3,3) meme, which came from the famous “Prisoner’s Dilemma” model of game theory.
0 kommentar(er)
