(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 👇
How? A DAO-governed treasury that’s expanding quickly and creating the right participation incentives to keep the gods happy. Thread 👇
(2/n) @OlympusDAO gained some traction on social media for a couple reasons:
-High APY
-@mcuban allegedly owns a small stack.
dailyhodl.com/2021/07/17/bil…
-High APY
-@mcuban allegedly owns a small stack.
dailyhodl.com/2021/07/17/bil…
(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 $USD backing & instead relies on a DAO-governed treasury of unique DeFi assets
The DAO’s free-floating (non-pegged) stablecoin, Olympus ($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 $OHM tokens when the value is below that threshold.
Endgame: deliver a free-floating algorithmic #stablecoin w/ no reliance on a fiat peg or fiat-backed treasury assets.
Endgame: deliver a free-floating algorithmic #stablecoin w/ no reliance on a fiat peg or fiat-backed treasury assets.
https://twitter.com/unbanksyETH/status/1418121259246780420?s=20
(6/n) Investor Summary:
- Olympus ($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.”
- 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.”
https://twitter.com/ohmzeus/status/1404168165790257153?s=20
(7/n)
- @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.
- @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.
(8/n)
- 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.
- 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.
https://twitter.com/xh3b4sd/status/1411704973151424514?s=20
(9/n)
- $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.”
- $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.”
(10/n)
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).
docs.olympusdao.finance/basics/basics
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).
docs.olympusdao.finance/basics/basics
(11/n)
- @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.
- @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.
(12/n)
- A partnership w/@RariCapital will allow creating a “Fuse pool” for users to use their sOHM as collateral and borrow other assets against it.
- A partnership w/@RariCapital will allow creating a “Fuse pool” for users to use their sOHM as collateral and borrow other assets against it.
(13/n)
- 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.
docs.olympusdao.finance/using-the-webs…
- 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.
docs.olympusdao.finance/using-the-webs…
(14/n)
- 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
messari.io/asset/olympus/…
- 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
messari.io/asset/olympus/…
(15/n)
The @OlympusDAO Pitch:
Centralized & decentralized dollar-pegged #stablecoins all share a common problem — heavy influence by @federalreserve monetary policy.
The @OlympusDAO Pitch:
Centralized & decentralized dollar-pegged #stablecoins all share a common problem — heavy influence by @federalreserve monetary policy.
(16/n)
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?
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?
(17/n)
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
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
https://twitter.com/RyanWatkins_/status/1375078206835990529?s=20
(18/n)
#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:
#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:
(19/n)
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.
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.
(20/n)
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.”
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.”
(21/n)
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.
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.
(22/n)
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).
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).
(23/n)
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.
bloomberg.com/news/articles/…
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.
bloomberg.com/news/articles/…
(24/n)
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:
econlib.org/library/Featur…
The three primary assets aiming to accomplish this are $RAI, $FLOAT, and $OHM.
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:
econlib.org/library/Featur…
The three primary assets aiming to accomplish this are $RAI, $FLOAT, and $OHM.
(25/n)
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)
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)
@AaveAave @iearnfinance @compoundfinance Thread Pt.II 👉
https://twitter.com/the_alphatrades/status/1419799069006995460?s=20
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