$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.

👇 Image
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. Image
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. Image
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. Image
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 Image
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. Image
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) Image
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. Image

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More from @HighCoinviction

14 Sep
I am only getting more excited everyday as we approach @terra_money Columbus 5 upgrade.

Let me summarize quickly the 4 main reasons why I am so bullish on $LUNA as a result.

Read to the end for my ELI2 key takeaway.

Here it is: 🧵
1.Seigniorage Burns (Burn all LUNA from UST mints) - A large portion of this wasn't being burned prev. and instead being directed to a community pool.

Therefore, post Col-5 $LUNA circ. supply could see a sizeable drop as a result which exerts strong upward price pressure.
2.Terra will be IBC enabled and UST becomes the defacto stablecoin of Cosmos ecosystem.

UST demand will significantly ramp as a result => more $LUNA being burnt => price appreciation.
Read 6 tweets
10 Sep
Came across a very interesting project recently that reminded me of @OlympusDAO back when it was $30mm mkt cap.

Chart looks prime, now is the $TIME anon.

This is an easy 3x at the minimum from here.

Some quick thoughts 👇
As you all know, making a non-pegged stable coin project come to fruition is difficult.

@OlympusDAO was able to succeed because it was able to attract a strong community early on where everyone believed in (3,3) Zeus was also a god figure which helped.
Wonderland is an experimental fork of Olympus on AVAX with more aggressive treasury mgmt.

The project is founded by @danielesesta (giga brain) from Abracadabra & Popsicle.

To bootstrap the project, Wonderland will donate 30% of rebase fees to Olympus as a sacrifice to the gods
Read 8 tweets
2 Sep
The L1 incentive war happening in crypto reminds me of the landgrab situation taking place with US online sports betting.

For the first time, we are seeing strong activity take place outside of ETH leaving some to question who the LT winner will be.

Here are my thoughts👇
Here are the parallels between the current smart contract wars and US OSB mkt:

1) Massive TAM with large greenfield

2) Market structure where share accrues to top 3 players

3) Both in landgrab situation where competitors are burning tons of $$ to win share
Below is a chart of price action for $DKNG (Draftkings), an American daily fantasy sports contest and sports betting operator.

The DKNG story will likely somewhat resemble what will happen for the fundamentals of ETH as these contract wars progress.

Allow me to explain.
Read 15 tweets
20 Aug
I believe the market is currently failing to fundamentally price $RUNE.

@THORChain should be viewed as an asset with L1 like potential, and there exists a massive upward re-rating oppt. should the market realize this.

$RUNE is a 40% position for me.

Here’s why I am excited 🧵
Before we begin, here is one of the best papers published on @THORChain to give you a brief reminder of what they do:

messari.io/article/thorch…
It is obvious at this point that Layer 1s have been attracting a ton of flows recently with most up >150% over the last few weeks.

I am a massive fan of investing in L1 like assets given their favorable asymmetric R/R profiles.

Read 10 tweets
18 Aug
$PENDLE just announced some massive changes to the protocol, which I expect to drive material fundamental growth for the protocol over the coming months.

Interest rate derivatives is an untapped market in DeFi and there is continuous innovation happening here.

👇 to learn more.
The recent updates further expand the use cases for @pendle_fi and also introduces a meaningful change to token economics for $PENDLE.

The two updates are:

1) Introduction of yield tokenization for SLP shares

2)(Pe,P) rewards program
Read 11 tweets
18 Aug
Have been getting some DMs lately on when I plan to sell my $SOL position so thought I'd do a quick thread so everyone can benefit.

TLDR: I think there is still at least 4x to go from here, which is meaningful.

👇 to learn why
At the highest level, valuation of an asset comes down to two things:

1) Fundamentals, usually addressed via some "Core" KPI such as TVL, $ Txs settled etc...

2) "Willingness To Pay" factor, which is more art than science and is influenced by comps, market cycle & other things
The way you make the most money as a fundamental investor is by getting a multiple expansion on the markets WTP factor.

However, this is much more art than science and is often what determines who is "talented".
Read 15 tweets

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