What is @OlympusDAO creating and why does it matter?
- Money vs Currency
- Reserve Currency Traits
- 11 month Performance
- Olympus bonds
- Staking and APY
- Bank-run scenario
- Bonds deep dive
- Non-bond revenue
- Community strength
- Why $OHM matters
1. OlympusDAO is creating a decentralized reserve currency that is backed by a community governed treasury.
Money and currency are used interchangeably but are different as illustrated in this graphic made by @MessariCrypto.
Gold, $ETH, $BTC are money, the USD is a currency.
2. Defi today relies on dollar pegged coins to settle transactions and provide liquidity.
Challenge with this dependence is shown in the Impossibility Trinity which says all 3 can't co-exist but 2 can: 1) Fixed Exchange Rate 2) Free Capital Flow 3) Sovereign Monetary Policy
Some analysis about $OHM for you if you bought the top:
On November 23 2021:
Mcap: $4.3 bn
$OHM price: $906
Index: 37
Risk Free Value / $OHM: $37 + some $ETH, $CVX et al
> You spent $906 to get a minimum $37 claim on Olympus Treasury.
56 days later here’s where you are at.
January 18 2022:
Mcap: $946 mm
$OHM price: $110
Index: 67
Risk Free Value / $OHM: $25
> You now have 1.81 $OHM (Index today / Index on purchase date) and a $45 claim (1.81*$25) on Olympus treasury
Your claim grew by 22.3% during a migration and ugly market conditions.
You may say that this rising $ value claim on Olympus treasury is meaningless because there is no redemption option.
I find measuring progress through rising claim on treasury as a better KPI than market cap because mcap is always going to be volatile for such an asset.
Web3 can’t be explained, it has to be experienced.
People in developing countries like Pakistan couldn’t invest in Web2 companies even if they wanted to, but can do so in Web3 initiatives.
Why is this a big deal?
Web3 aligns incentives of a global talent pool that was previously not possible.
$OHM and $KLIMA holders in different countries are actively collaborating to make these protocols succeed. Investors and customers of Tesla and Twitter aren’t doing that.
Web3 gives people in developing countries access to a reliable legal system whereas Web2 powers were mainly accessible to folks living in the developed world.
With Ethereum, my niece and nephew in Pakistan can launch an NFT project and “know” their rights will be protected.