Thread by @HighCoinviction

$OHM has the highest potential of the non-pegged stablecoins to 5x within a month.

It trades at a significant discount to peers despite having a similar multi-billion $ TAM, intelligent token design, and backing from elite investors.

Behold the path to Mount Olympus.

👇

Ethereum is dollarizing with traditional stablecoins accounting for ~60% of daily txns.

This reliance on the dollar is concerning and introduces regulatory risk that borders systemic.

$OHM aims to restore Ethereum's monetary independence and the potential TAM is easily>$50bn.

Just like how central banks manage their currencies using reserve assets (i.e USD, Gold, etc), Olympus DAO manages $OHM using reserve assets.

$OHM ultimately will stabilize against a basket of assets making up its treasury.

Initially OHM will be backed solely by DAI which is considered its intrinsic value.

This serves as a price floor on OHM, but not a peg.

Olympus DAO builds its treasury in 3 ways:

1) Through OHM market operations (buying and selling OHM)

2) Through putting its treasury assets to work in DeFi (e.g depositing its DAI into Rari to generate yield).

3) Bonds

Olympus DAO stabilizes OHM versus its treasury through the following:

When OHM trades above 1 DAI Olympus DAO sells OHM for DAI.

When OHM trades below 1 DAI Olympus DAO sells DAI for OHM.

In each case Olympus DAO earns a profit.

Due to strong demand from whales, the price of $OHM is currently well above 1 DAI.

The price will eventually decrease when the sales contract deploys.

However by staking $OHM you can avoid this price decrease through protocol profits.

In other words higher OHM price = good.

The value accrual for $OHM stakers is INSANE.

At current prices, when the Sales contract deploys the protocol should be minting millions of $$ worth of $OHM to stakers each epoch.

Because the $OHM price is so high above 1 DAI each $OHM sale will produce near 100% profit margin

But $OHM sales are just the beginning.

Olympus DAO also accumulates reserve assets through Bonds.

Essentially Bonds allow OHM-DAI LP’s to trade their LP shares with the protocol for discounted OHM at a later date.

This both incentivizes liquidity in the short-term, and allows the Olympus DAO to accumulate OHM liquidity in the long-term.

By acquiring the LP shares, the protocol not only earns fees from $OHM trading, but also gains the ability to manage its own liquidity.

This idea of protocol managed liquidity is why VCs pumped Fei Protocol to a $200 million pre-launch valuation.

It’s exciting to say the least.

To conclude, $OHM should be trading at least in-line, if not at a premium to peers given similar growth potential and strong value accrual.

This implies ~5x from here:

$OHM = ~$35mm Mkt Cap

$BANK = ~$70mm Mkt Cap

$TRIBE = $200mm Mkt Cap

$FLX = $250mm Mkt Cap (my estimate)

Messari just put out a great report on non-pegged stablecoins if you want to learn more.

Check it out.

messari.io/article/the-ar…

Btw if you like to copy trade elite investors, notable OHM backers include: @nascentxyz (@delitzer ) & @ZeePrimeCap (@Fiskantes )

$OHM demand / hype is just picking up.

Meet you on top of Mount Olympus.

Just an update, stakers are currently getting 21,500% APY.