1/
I am fed up with all the mid-curve brainless CT posters and reply-guys who keep calling @OlympusDAO and $OHM a ponzi without even understanding the mechanics...
(long thread)
I am fed up with all the mid-curve brainless CT posters and reply-guys who keep calling @OlympusDAO and $OHM a ponzi without even understanding the mechanics...
(long thread)
2/
Understand this, OHM aims to be a reserve currency with wide adoption so it needs a large number of ohms in circulation and cannot have a fixed supply like BTC. The supply is created via bonding which adds assets to the treasury to establish actual backing.
Understand this, OHM aims to be a reserve currency with wide adoption so it needs a large number of ohms in circulation and cannot have a fixed supply like BTC. The supply is created via bonding which adds assets to the treasury to establish actual backing.
3/
The stable assets added to treasury allow reward rebasing which is a very elegant solution that does two things: (1) It allows the current holders to maintain their share of the market cap ... (2) adds more ohms into circulation to fulfil the purpose of reserve currency
The stable assets added to treasury allow reward rebasing which is a very elegant solution that does two things: (1) It allows the current holders to maintain their share of the market cap ... (2) adds more ohms into circulation to fulfil the purpose of reserve currency
4/
Now, when you buy OHM and STAKE IT, it is equivalent to owning BTC or any fixed supply asset .. with BTC's fixed supply you buy 1 BTC you will always have the same percentage of the market cap of BTC price up or down you own the same share of the BTC pie.
Now, when you buy OHM and STAKE IT, it is equivalent to owning BTC or any fixed supply asset .. with BTC's fixed supply you buy 1 BTC you will always have the same percentage of the market cap of BTC price up or down you own the same share of the BTC pie.
5/
When you buy OHM and STAKE, it is like stock split the rebases counter the increased number of OHMS emitted so you ALSO maintain the same pie of the Market Cap ... staked OHM is NOT inflationary.. unstaked naked OHM is inflationary..
When you buy OHM and STAKE, it is like stock split the rebases counter the increased number of OHMS emitted so you ALSO maintain the same pie of the Market Cap ... staked OHM is NOT inflationary.. unstaked naked OHM is inflationary..
6/
Bonds add minor amount of dilution in certain times, however this dilution for the past two months have been negative, meaning STAKED OHM is deflationary for now, regardless, if you assume Bonds will always dilute you a minor amount, they pay you back more than they take..
Bonds add minor amount of dilution in certain times, however this dilution for the past two months have been negative, meaning STAKED OHM is deflationary for now, regardless, if you assume Bonds will always dilute you a minor amount, they pay you back more than they take..
7/
Bonds add treasury assets that eliminate the need for "FAITH" in the value of a crypto asset, a more superior solution to intrinsic value estimation. BTC has value because people decided to give it value ... OHM has value without this "we all agree to give it value"
Bonds add treasury assets that eliminate the need for "FAITH" in the value of a crypto asset, a more superior solution to intrinsic value estimation. BTC has value because people decided to give it value ... OHM has value without this "we all agree to give it value"
8/
If governments decide to ban BTC, then BTC has no value at least in that jurisdiction... if people decided that BTC is useless and worthless then its value is gone because the "faith" in it is gone ... OHM on the other hand is backed by liquid assets that still give it value
If governments decide to ban BTC, then BTC has no value at least in that jurisdiction... if people decided that BTC is useless and worthless then its value is gone because the "faith" in it is gone ... OHM on the other hand is backed by liquid assets that still give it value
9/
If the whole world decides that OHM is worth nothing, all OHM holders can dissolve the DAO and every holder gets their share of the treasury which is the same share they started with due to the staking and rebasing. I cannot say the same about BTC or other unbacked assets.
If the whole world decides that OHM is worth nothing, all OHM holders can dissolve the DAO and every holder gets their share of the treasury which is the same share they started with due to the staking and rebasing. I cannot say the same about BTC or other unbacked assets.
10/
To recap, buying and staking OHM is no different than buying BTC or any "non rebasing" crypto asset with fixed supply. You own a piece of the Market Cap pie that stays fixed... which is also better than buying an asset with no supply cap.
To recap, buying and staking OHM is no different than buying BTC or any "non rebasing" crypto asset with fixed supply. You own a piece of the Market Cap pie that stays fixed... which is also better than buying an asset with no supply cap.
11/
On top of that, OHM is backed, so you do not worry that one day the world may decide to move on and you find your Ohm has no value because of "collective decision by others".. Ohm ain't no Tulip
On top of that, OHM is backed, so you do not worry that one day the world may decide to move on and you find your Ohm has no value because of "collective decision by others".. Ohm ain't no Tulip
12/
We now established that OHM is inflationary by DESIGN and its price does not reflect the reality of your investment, you need to understand that the price chart that matters is the Index Adjusted Price (IAP) or the price of the rebasing asset which is gOHM.
We now established that OHM is inflationary by DESIGN and its price does not reflect the reality of your investment, you need to understand that the price chart that matters is the Index Adjusted Price (IAP) or the price of the rebasing asset which is gOHM.
13/
gOHM or IAP is the one to compare to other assets since it includes in it the rewards of rebases.. apples to apples do NOT compare Ohm to BTC chart or Price Action .. gOHM is the one to TA and chart/analyze if you are inclined to do so...
gOHM or IAP is the one to compare to other assets since it includes in it the rewards of rebases.. apples to apples do NOT compare Ohm to BTC chart or Price Action .. gOHM is the one to TA and chart/analyze if you are inclined to do so...
14/
During this downtrend if you look at unstaked OHM chart you will see 90% drop from ATH however that is misleading since the drop does NOT take into account the rebasing rewards of holders. gOHM drop from ATH will be lower and inline with relatively young ALT coins
During this downtrend if you look at unstaked OHM chart you will see 90% drop from ATH however that is misleading since the drop does NOT take into account the rebasing rewards of holders. gOHM drop from ATH will be lower and inline with relatively young ALT coins
15/
Calling Ohm a ponzi means all crypto assets are ponzi, at least OHM has intrinsic backed value that can be redeemed if the DAO votes to do so. See current examples of some forks of Ohm that have voted to dissolve and give holders their share of treasury.
Calling Ohm a ponzi means all crypto assets are ponzi, at least OHM has intrinsic backed value that can be redeemed if the DAO votes to do so. See current examples of some forks of Ohm that have voted to dissolve and give holders their share of treasury.
16/
In many cases, the value given back to investors is higher than the current market price of each token.
In many cases, the value given back to investors is higher than the current market price of each token.
17/
Olympus did NOT fall, over leverage and cascaded liquidations hurt the protocol in the short term. (250M USD worth of leverage wiped!!!) 100s of forks that diluted the mission and message of Olympus hurt the narrative and turned this elegant solution into a joke
Olympus did NOT fall, over leverage and cascaded liquidations hurt the protocol in the short term. (250M USD worth of leverage wiped!!!) 100s of forks that diluted the mission and message of Olympus hurt the narrative and turned this elegant solution into a joke
18/
Degen apes chasing after high APY without understanding that the APY is NOT passive income, it is the mechanic which makes your OHM asset act like a fixed capped supply asset while giving you treasury assets via bonding.
Degen apes chasing after high APY without understanding that the APY is NOT passive income, it is the mechanic which makes your OHM asset act like a fixed capped supply asset while giving you treasury assets via bonding.
19/
The mission is still the same, nothing changed, we all learned from the past few months and we need to refine our message and reach out to others so they also understand what is Ohm ... enough of this abuse and misunderstanding of one of the MOST innovative products in Defi.
The mission is still the same, nothing changed, we all learned from the past few months and we need to refine our message and reach out to others so they also understand what is Ohm ... enough of this abuse and misunderstanding of one of the MOST innovative products in Defi.
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