The sad state of digital assets today:

- $FART ($2B peak) 📉 60%
- VIRTUAL ($4.8B)📉 78%
- ai16z ($2.3B) 📉 80%

CT will blame wintermute but it's much simpler: liquidity structure dictates price action, and these tokens were deployed on launchpads using xy=k liquidity... pumpfun changed the game by standardizing on token supply, price, mc and liquidity.

The standardization was good but the choice of xy=k liquidity was short-sighted.

Only $5M of net selling took $FART down 60%. This is pretty ass liquidity structure for $2B of hot air.

So @OlympusDAO has started buyback-n-burn of $OHM, using DSR yield generated from $181M treasury. That's $83K per week.

But this isn't your typical buyback-n-burn: OHM can access its DAI backing by borrowing from itself at 81% LTV.

This creates a **leveraged** buyback: a single $1 of bid translates to $5.22 in leveraged bid. That's a very efficient buyback program!

Below I go into detail how a single week's worth of buyback moves the price +27% (many assumptions in there) 👇 First, you can track buybacks here:

$165K in DAI represents 2 weeks worth but I use a single week in my calcs = $83K

To find how much OHM you can buyback, we know that protocol has $4.5M in OHM-ETH liquidity. Most of $83K bid pressure will go through this LP.debank.com/profile/0xf7de…

It's only 24 hours and more people are learning about @BaselineMarkets and its mechanics. Some developments i've seen:

- How it works
- Incorrect market cap
- Smart money flows
- Looping as emerging activity
- Memecoin tooling positioning
- Comeback arc

👇 How it works: great thread by @0x_Beans

https://x.com/0x_beans/status/1764336691211620842?s=46&t=nDRif1Sh_f4FuxRoeR9C5A

Something interesting is starting to happen with $OHM. Supply has become deflationary.

Why? With APY now at 7.33% & inverse bonds active below backing, there's *way* more $OHM burned than minted.

Supply has been decreasing every single day since Oct 6 The only other time we saw deflation was during market volatility of May and Jun. BUT... on a much smaller scale. Collectively, those deflationary days burned only 28% of what has been burned since Oct 6!

What does this mean for liquid backing?

Since I discovered $BEAN one month ago:

* Supply expanded by 64%
* Liquidity grew 7.5x!
* Leverage shrunk by 38%
* Unmet demand grew to 6% of supply

Let's review below 👇 1/n Supply expanded from 42M to 69M, representing a 64% growth. Most of this is attributed to a 23% expansion in just two days 👀

What's causing this? 4x increase in demand. Volume pre-Apr 9 averaged $2M while post-Apr 9 averaged $8M.

More demand = more mint

Q1 is behind us. @OlympusDAO just went through its toughest quarter to date but...

1. We're alive
2. We're shipping consistently
3. We have a busy Q2 ahead of us

This is a thread on what we accomplished in Q1 👇 1/n Olympus lost narrative during peak bubble in Nov. 100+ forks, Wonderland claiming they invented us, simps valuing us as a hedge fund.

With forks crashing left and right, market concluded OHM mechanics, and therefore Olympus, has failed.

$OHM price is falling. Liquid backing is falling.

People comment that Olympus has failed to "defend the price". That's not true and needs to be clarified.

I'll explain why the backing is going down and what we can do about it. Let's jump in 🧵👇 1/n What is liquid backing? By definition:

Liquid backing = (ETH + stables + DAI in liquidity) divided by circulating $OHM supply

Practically, this is where treasury steps in to provide a backing, demonstrating to Ohmies that it's using reserves to protect their investment

Venture capital is broken.

VCs create unequal power structures, have misaligned incentives and make cost of capital high relative to value they provide.

DeFi redefined outdated financial systems.

@OlympusDAO will redefine VC. Here's how 🧵👇 1/ Modern VC started in 70s. Semiconductors were labor and capital intensive. Factories had to be built, r&d worked on multi-year roadmaps and go-to market required heavy investment.

VC capital was king and risk/reward justified equity exchange VC asked for.

My vision for the future: in next 2-5 years, traditional orgs will start "DAO units", independently-run org units with a DAO structure. These units will start as skunkworks project managed by a VP and success metric will be P&L with a focus on the insane margin efficiencies. 2. Companies with strong brand and loyal fanboys/girls will be pioneers here. Think @SlackHQ , @Apple and @Starbucks . Smaller upstarts will be able to experiment more efficiently but big brands will have the biggest reach.

All algorithmic stablecoins aiming to be the Digital Currency are various interpretations of the same thing:

🌜🌜🌜Exchange Rate Policies🌛🌛🌛

This is a thread to better understand the landscape and know what's coming next 👇... or is it? 1/n To achieve trade surplus, countries have strong economic incentives to maintain a 👌 exchange rate of their currency to trading country's currency.

This feeds Exchange Rate Policies: Countries deciding what economic levers to pull at X time for Y years with Z conditions.

Most @OlympusDAO members sit at the pinnacle of Maslow's hierarchy of human needs. This creates a virtuous cycle attracting best talent to ship the best product and 🔂 Never before seen in history, I believe we'll be the first DAO to rival Google/Amazon's legacy and productivity Maslow categorizes human motivation into 5 stages starting with physical survival, transitioning to psychological safety and ending with vision-driven narratives.

In <3 weeks, @olympusDAO grew their protocol-owned value to $9.4M. But it really took off with launch of Sales/Bonds, growing from $1.3M to $9.4M (+723%) in 2 wks Tomorrow, they're launching the next iteration of Bonds to supercharge that growth. Let's explore the implications: Today, treasury contract holds 214K DAI and 4.75 OHM-DAI SLP. This is 58% of all liquidity (presently at $15.9M) so the treasury holds $214K + $9.2M = $9.4M. Impressive but concerning that most of it is in $OHM, a early-stage volatile token.

etherscan.io/address/0x886c…