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Asfi

19 Jun, 9 tweets, 4 min read

@OlympusDAO

A thread about understanding @OlympusDAO through a few charts @ohmzeus considers important:

1. Ohm Price and Ohm Index Adjusted Price

2. Change in Risk Free Value

3. Index Adjusted Risk Free Backing

4. Risk Free vs Market Value of Treasury

1. Say you bought one Ohm at inception for $513 and staked it. Today you will have 4.9 Ohms.

Why?

ODAO pays an Ohm reward to stakers called rebase, compounding every 8 hrs. Current rebase = 0.63% (APY = 112,000%)

So while Ohm market price is $250, your investment = $1,225.

2. Every day the risk free value of ODAO’s treasury grows as it sells bonds and takes in DAI.

For every 1 DAI it receives, it mints 1 Ohm.

But that’s not all, the protocol also owns 93% of the liquidity pool. That’s deep, guaranteed and benevolent liquidity!

3. As the protocol soaks in DAI and soon other assets like FRAX, it’s risk free value will keep rising.

Protocol also owns Ohm, that’s where the delta in risk free and market value comes from.

As of now ~30% of treasury value is risk free!

4. What this does is that it keeps raising the “bare minimum” value of your investment.

Index adjusted Risk Free Backing of ~$75 today says that the person who bought 1 Ohm at inception for $513 and staked it, can now be guaranteed a bare minimum $75 today.

So this 10 week old protocol can mathematically guarantee 15 cents on the dollar right now to its early investors who staked. (3,3) rocks!

I mean ok sure there’s smart contract failure risk, there’s DAI losing its peg risk and all but wow that’s quantifiable downside.

DISCLAIMER: I’m new to understanding this protocol.

I wrote this thread to sharpen my understanding.

You can see Zeus’ actual presentation here.

twitch.tv/videos/1060447…

I’ve been trying to poke holes in incentive design of this protocol but so far haven’t found any major ones.

My next step is assessing counter party risk by making a financial model of the protocol itself.

Work in progress with made up inputs here.
docs.google.com/spreadsheets/d…

If you know me, you know I’m a total nerd who loves to party.

I’ve found plenty of nerds who love to party and make great memes in the OlympusDAO community.

Join the discord here for serious intellectual stimulation and laughs: discord.com/invite/olympus…

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More from @ishaheen10

Asfi

@ishaheen10

26 Jun

How long will it take for my investment in $OHM to become risk free?

- 300 days base case
- 180 days bull case.
- 20x return

Base case assumptions:
1. Rebase rate: 0.35% (currently 0.55%)
2. Growth rate of Risk Free Value per Ohm: $0.2/day/ohm

1 day ago RFV/Ohm was $14.1

Today RFV = $7.7 million
Total Ohm Supply = 537,423

RFV / Ohm Supply = $14.3

So RFV/Ohm grew by $0.2 / day. Trend is steady.

In 180 days RFV / Ohm = $0.2 * 180 = $36 + current RFV / Ohm of $14.3 = $50 RFV / Ohm

duneanalytics.com/shadow/Olympus…

Today rebase rate is 0.56%. This is expected to decline. Let’s assume 0.35% average rebase, then in the next 180 days One $OHM today will yield

(1.0035)^180*3 = 6.6 Ohms in 180 days. (Compounding every 8 hrs)

So RFV of One Ohm staked today = 6.6 * $50 = $330 in 180 days

Read 10 tweets

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Think of the fiber optic middle mile mile network as the state high way system.

Think of the last mile network as the street in front of your home.

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Here’s to the crazy ones!

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Meet Azfar Moin, a Pakistani man who pulled this off.

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Sidra was born and raised in Okara, Pakistan. When she finished high school she had to enroll in an all-boys college but not attend classes with other boys. Studying in seclusion was uncomfortable but she persisted.

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