One for the @OlympusDAO OHMies.
More recently there have been some comments that $OHM is already exhibiting stability during its ‘expansion phase’.
Here are some metrics to evaluate ‘stability’ through the eyes of an Insto investor:
More recently there have been some comments that $OHM is already exhibiting stability during its ‘expansion phase’.
Here are some metrics to evaluate ‘stability’ through the eyes of an Insto investor:
Context:
OlympusDAO is currently in its ‘expansion phase’ (EP), where its objective is to bootstrap the network. During the ‘mature phase’, the protocol will then focus on stabilising the $OHM price.
There is NOT an expectation that $OHM should be stable during EP.
OlympusDAO is currently in its ‘expansion phase’ (EP), where its objective is to bootstrap the network. During the ‘mature phase’, the protocol will then focus on stabilising the $OHM price.
There is NOT an expectation that $OHM should be stable during EP.
Beta:
Generating OHM’s beta to Bitcoin and Ethereum over rolling 30d periods, there is a decreasing trend towards zero, highlighting OHM’s return profile becoming less influenced by $BTC and $ETH
Generating OHM’s beta to Bitcoin and Ethereum over rolling 30d periods, there is a decreasing trend towards zero, highlighting OHM’s return profile becoming less influenced by $BTC and $ETH
Correlation:
Using a similar metric to Beta, OHM’s correlation with $BTC and $ETH is also trending towards zero, demonstrating close to no correlation with $BTC and $ETH price movements
Using a similar metric to Beta, OHM’s correlation with $BTC and $ETH is also trending towards zero, demonstrating close to no correlation with $BTC and $ETH price movements
Daily volatility:
A stable asset is expected to exhibit low volatility (i.e. minimal price fluctuation around its average).
Whilst the daily volatility of $OHM is trending downwards, it is still magnitudes higher than stablecoin incumbents $USDT $USDC $UST $DAI $sUSD
A stable asset is expected to exhibit low volatility (i.e. minimal price fluctuation around its average).
Whilst the daily volatility of $OHM is trending downwards, it is still magnitudes higher than stablecoin incumbents $USDT $USDC $UST $DAI $sUSD
Zooming further into stablecoin daily volatility, $OHM should be targeting a daily volatility of +/- 0.5% which would be consistent with the likes of $USDT and $USDC
Lastly, by categorising OHM’s return profile, we see:
Cell C17 & C20: OHM doesn’t demonstrate a clear direction when $BTC is -ve. ~50% of outcomes are positive/negative.
Cell C18 & C21: The magnitude of returns when BTC is -ve is much higher than outcomes for stablecoins
Cell C17 & C20: OHM doesn’t demonstrate a clear direction when $BTC is -ve. ~50% of outcomes are positive/negative.
Cell C18 & C21: The magnitude of returns when BTC is -ve is much higher than outcomes for stablecoins
The full report is here😘
Just reiterating, there is NOT an expectation that $OHM should be stable during EP. This exercise will be repeated again once the protocol enters into its ‘mature phase’ where its stability will be much more heavily critiqued.
Just reiterating, there is NOT an expectation that $OHM should be stable during EP. This exercise will be repeated again once the protocol enters into its ‘mature phase’ where its stability will be much more heavily critiqued.
https://twitter.com/0x_Ventures/status/1437301004945534977?s=20
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