(1/n) @OlympusDAO Ω $OHM is using community-governed monetary policy to reach a lofty goal — Unpegging #DeFi from fiat currencies

How?  A DAO-governed treasury that’s expanding quickly and creating the right participation incentives to keep the gods happy. Thread 👇 Immortality113, CC BY-SA 4.0, via Wikimedia Commons
(2/n) @OlympusDAO gained some traction on social media for a couple reasons:

-High APY

-@mcuban allegedly owns a small stack.

(3/n) The DAO’s governance manages the monetary policy of @OlympusDAO and its token $OHM, which is a reserve currency backed by a treasury of assets (DAI, FRAX, OHM-DAI SLP, OHM-FRAX LP, and SUSHI rewards from the OHM-DAI SLP)
(4/n) $OHM aims to detach from fiat-pegged #stablecoins while preserving low volatility vs. to other #cryptocurrencies

The DAO’s free-floating (non-pegged) stablecoin, Olympus ($OHM), aims to have no $USD backing & instead relies on a DAO-governed treasury of unique DeFi assets
(5/n) Strategy: Mint $OHM when it's > the intrinsic value (1:1 $DAI) & burning $OHM tokens when the value is below that threshold.

Endgame: deliver a free-floating algorithmic #stablecoin w/ no reliance on a fiat peg or fiat-backed treasury assets.

(6/n) Investor Summary:

- Olympus ($OHM) is an ERC-20 token that is both a stable asset used for payments and a governance token. Emission type: Burn-mint rebasing.

- Consensus Algorithm: None, or DAO governance-based treasury and “Proof of Reserve.”

- @OlympusDAO was built by a “distributed pseudo-anonymous team” & completely DAO-governed.

- The DAO has displayed solid performance compared to the broader crypto market during the cryptocurrency market downturn that began in May 2020.
- Risk-free value (RFV) in June 2021 more than doubled from $4.3M to $9.8M while almost 100% of $OHM supply is staked and under DAO ownership, leading to a strong price floor and a long runway of revenue for stakers.

- $OHM is released at a steady rate, so there's no incentive to get in earlier than others, but incentives favor long-term active participants

-OHM is not a “stable coin,” but rather “aspires to become an algorithmic reserve currency backed by other decentralized assets.”
Further, it is “backed” but not “pegged,” by 1 $DAI as the price floor and no upper limit in the price of an $OHM (1 $DAI + premium).

- @OlympusDAO has completed two audits, via @peckshield & @Omniscia_sec

- A recent partnership w/ @fraxfinance allows @OlympusDAO to accumulate OHM-FRAX liquidity through bond sales & buffer the DAO’s treasury.
- A partnership w/@RariCapital will allow creating a “Fuse pool” for users to use their sOHM as collateral and borrow other assets against it.
- The upgrade from v1.0 to v1.1 introduces Hades (increased privacy and better bonding features) and the ability to add new assets for bonds soon.

- Initial distribution: Initial Discord Offering, with 50,000 $OHM allocated to members who joined the Discord server before March 3 at $4/OHM

- Another 18,260 $OHM was offered in an IDO on @SushiSwap, raising the total initial supply to 68,260

The @OlympusDAO Pitch:

Centralized & decentralized dollar-pegged #stablecoins all share a common problem — heavy influence by @federalreserve monetary policy.
A system dependent on fiat currencies & the institutions that issue them is a far cry from the original #Cypherpunk vision for #Bitcoin, #cryptocurrencies, and #DLT in general.

Why not eliminate dependence on fiat currencies? What if Stablecoins Were Independent Of Fiat Monetary System
Unsurprisingly, the @Ethereum ecosystem dollarized — it’s a common theme for developing economies due to monetary instability.

Other Layer1’s will likely follow suit, such as @Polkadot & @solana, but for the sake of brevity, we’ll focus on #ETH

ETH Has Dollarized; Source: Messari
#Stablecoins help keep money and value flowing through #crypto rather than flooding out of the market when prices and sentiment go south.

However, such reliance on fiat pegs has its drawbacks:
The problem w/ dollarization is #stablecoins can replace monetary sovereignty w/ external dependencies that introduce systemic risk.

With that stability comes inextricable influence from the same monetary policies and institutions the #crypto ecosystem aims to escape.
Nearly all #stablecoin protocols base their monetary policy decisions on maintaining fixed exchange rate targets w/ $USD

They're more like currency boards than central banks; Stablecoins approach monetary policy on a fixed exchange rate. Research “impossibility trinity.”
The impossibility trinity is a concept in int'l economics that asserts the infeasibility of achieving a fixed exchange rate, free capital movement absent of capital controls, & independent monetary policy.
Most countries opt for free flow of capital and autonomous monetary policy over a fixed exchange rate. $USD pegged #stablecoins aim to maintain a fixed exchange rate (not unlike currency boards). The Impossibility Trinity and Stablecoins; Source: Messari
A net dollar peg in #DeFi invites regulation from the US gov. Worst-case scenario? Read the STABLE act.

Regulatory pressure is quickening, w/ Powell & @secyellen voicing concerns over #stablecoins & the need for regulatory oversight.

What would an independent @Ethereum monetary system look like?

It would be similar to a dollar under the gold standard w/ a free banking system:


The three primary assets aiming to accomplish this are $RAI, $FLOAT, and $OHM.
Use case: Deposit assets into #DeFi yield aggregators like @AaveAave, @iearnfinance, or @compoundfinance.

Those assets are like banking deposits if comparing to the gold standard model. Let's focus on $OHM. (Part II thread follows)

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More from @the_alphatrades

26 Jul
(51/n; @OlympusDAO thread Pt.III)
Any community-governed project must find its own way to deal with coordination attacks.

It’ll be worthwhile to track how well the DAO is doing at remaining decentralized and keeping vulture VCs in check.
Even as APY comes back to Earth, plenty of directions for the DAO to secure a spot in the #DeFi ecosystem remain. @glassnode offered excellent examples:
- “A risk-off asset not exposed to the inflationary, regulatory, or monetary pressures of USD” (Based on recent proposals that have passed, the DAO is actively working on their $DAI problem)

Read 19 tweets
26 Jul
We can think of $OHM as promissory bank notes fully backed by reserve assets in the DAO’s treasury and the DAO being like a private bank. A Comparison of Monetary Systems; Source: Messari
Why non-pegged #stablecoins when using another crypto-native #cryptocurrency like #Bitcoin or @Ethereum is possible?

The issue w/ pegging to other cryptos is price volatility. Stablecoins are mainly pegged to $USD, exposing them to US regulation & @federalreserve policy.
@OlympusDAO currently focuses on supply+ over price+, w/ the target of having $OHM function as a currency that holds purchasing power regardless of market volatility.

+There are perks for putting one’s resting capital to work in the #DeFi ecosystem to generate revenue.
Read 26 tweets
26 Jul
A thread on dealing with emotions in #Crypto

1. After a massive short squeeze movement you will experience emotions of fomo/panic/confusion:
a. What if it keeps ripping up without me?
b. What Alts will rip now that BTC has ripped up?
c. Should I short it cause it went up too high?

Be patient and hang tight. The market will always present a new opportunity.

a. In moments like this it is better to stay position-less rather than force a position in now.

b. Alts typically do not start bull markets, BTC does. So that means on a daily basis BTC needs to put in a higher low and a higher high to show structure change.

Read 8 tweets
4 Jul
@CurveFinance thread Pt.2 👇

While spoofing is possible through Curve, such activity can ultimately benefit LPs. Arbitrage on the Curve DEX is also lucrative for traders.

@CurveFinance's liquidity pools:

Total LPs: 42,801


Curve.fi's real-time interactive charts:


Curve's at the top of the leaderboards for DeFi-DEX TVL.
Curve's total deposit base as of Feb 2021:

Read 40 tweets
4 Jul
@CurveFinance $CRV — A decentralized exchange #DEX bridging value across the #DeFi industry

If you're using decentralized lending platforms, you're likely using Curve indirectly.

Thread 👉
Quick facts 1:

Curve Finance is a DEX built on #Ethereum.

Purpose: Efficient #cryptocurrency trading & high annual percentage rates (APR) for liquidity providers (LPs)

Core product: Community-governed DEX

Curve Finance is the powerhouse of #DeFi aggregator @iearnfinance
Curve's daily trading volume: $1B+

Total locked value (TVL): $7.88B+

Competing w/ @AaveAave as the most valuable DeFi platform.
Read 27 tweets
30 Apr
#Arweave protocol/network leads the pack in permanent, decentralized, censorship-resistant data storage

Pay once, store forever (~200yrs)
Permanent storing & hosting for NFTs & Web3 apps

Thread 👉
Arweave Proof-of-Work (PoW) is free from “state bloat,” so less risk to decentralization


Arweave-Solana bridge 👉



medium.com/solana-labs/an… Solana & Arweave partner fo...

New use cases:

1. Improved data access

(SPoRA) prevents remote storage on servers like AWS, emphasizing speed of access, but does not prevent pooling:
Read 16 tweets

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