Olympus DAO chases a new ATH after fresh bond offerings and partnerships

Olympus DAO chases a new ATH after fresh bond offerings and partnerships

The rapidly evolving world of blockchain technology offers a wide range of approaches and tokenomic models aimed at solving the blockchain trilemma of creating a decentralized, stable and secure network.

One tokenomic model that has seen several variants over the past year is the 'rebase' model, which is designed in a way so that token balances can fluctuate over time depending on changes in the token price and the supply in circulation.

Our top trading bots

Olympus (OHM) is a rebase project that has caught the attention of many in the crypto space over the past six months — in large part thanks to the high yield offered to OHM stakers, which is currently above 7,000%.

Olympus DAO chases a new ATH after fresh bond offerings and partnerships
Olympus staking dashboard. Source: Olympus DAO

What sets Olympus apart from other protocols in the market, including other rebase projects like Ampleforth (AMPL), is that rather than having its main token fluctuate around the stablecoin price of $1 USD, each OHM is an algorithmic reserve currency backed by a basket of assets, such as DAI or FRAX, that are held in the Olympus treasury and give OHM an intrinsic value below which it cannot fall.

Staking and bonding game theory

The main way Olympus users increase the value of their portfolios is through staking OHM on the protocol to earn rebase rewards.

Rebase rewards are paid for by the proceeds from bond sales on the network and can fluctuate depending on the number of bonds sold, the reward rate set by monetary policy and the number of OHM staked.

The long term strategy behind staking on the network involves locking OHM on the protocol long enough so that even if the market price of the token drops below the initial purchase price, the increase in the balance of staked OHM should eventually outpace the fall in price and could potentially lead to an increase in total value.

Bonding on Olympus is essentially a cross between a fixed income product, a futures contract and an option. Bonders are quoted with terms for a trade at a future date, which include a predefined amount of OHM that the bonder will receive once vesting is complete.

These bonding capabilities make it possible for the Olympus DAO to accumulate its own liquidity, referred to as POL, which is an important part of its overall design as more POL ensures that there is always locked exit liquidity in trading pools that helps to facilitate market operations and protect token holders.

Initially, the project launched via a $500 initial Discord offering (IDO) and within a month of listing, the price quickly rose to $1,487 before the market-wide crash in the second week of April pushed the price back to its listing price near $163. Even with the price scrapping a swing low, OHM stakers continued to stack coins over the following month.

Recently, members of the Olympus DAO team pointed out that IDO participants who never unstaked their initial holdings would be sitting on a OHM war chest with a value of over $1 million.

Related: Treasury plots stablecoin crackdown even as Tether’s dominance wanes

Growing treasury and future plans

As the Olympus market grows, the protocol also accrues revenue from liquidity provider rewards, which are deposited into the project’s treasury.

According to data provided by the protocol, the Olympus DAO treasury now holds more than $100 million in treasury assets and is the second-largest treasury in DeFi behind Uniswap.

Olympus has also shown that it is keeping up with the latest developments in the crypto space as it recently hosted office hours to discuss two of the proposals facing the community: the prospect of adding LUSD to the treasury and whether Olympus should deploy to the recently released Ethereum (ETH) layer-two solution Arbitrum. Recently, members of the TokeMAK community voted to include Olympus DAO in its reactor network and within the next month, an OHM/TOKE staking pool is expected to launch.

Olympus DAO chases a new ATH after fresh bond offerings and partnerships
OHM/DAI daily chart. Source: TradingView

It remains to be seen how rebase projects like Olympus and Ampleforth will perform over time, but a quick glance at the daily chart shows that OHM price is trading at $1,286 and on the verge of attaining a new all-time high.

While the concept is one of the newer models to emerge in the crypto ecosystem, it is a development that is garnering attention as the global financial system appears to be in the process of shifting to a new currency standard.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Continue reading about Cointelegraph
Kaspersky ranks cryptojackers among top malware threats in Africa
Russian cybersecurity firm Kaspersky has detected more than 1,500 fraudulent entities targeting potential crypto investors and miners just in the first...
Bitcoin whales join ‘small fish’ in buying BTC as price holds above $47K
Rich crypto investors are turning their attention back to Bitcoin (BTC) as its price continues to eye a breakout move above $50,000.Crypto-focused newsletter...
Analysts identify $40K as the make or break it level for Bitcoin price
Optimism from bulls is the leading sentiment of the day after Bitcoin (BTC) price made its way back toward the psychologically important $40,000 level....
We have to be in the crypto space, Mastercard CEO says
Traditional card networks are vying to ensure their services remain at the center of new developments in digital assets, whether they be central bank digital...
Reality show is casting crypto users locked out of their wallets
A casting call for a cable network series may offer crypto users at the end of their rope a way to access tokens locked away — or at least show viewers...
Ether already ‘flippening’ Bitcoin, says Celsius CEO
Bitcoin (BTC), the largest cryptocurrency by market capitalization, has already started losing its market dominance to Ether (ETH), according to Celsius...
Crypto needs a decentralized daily reference rate
“If you can’t measure it, you can’t manage it” is probably the most cited quote attributed to Peter Drucker, who is known as the father of management thinking....
Cardano Climbs 14% In Bullish Trade
Investing.com - Cardano was trading at $1.282176 by 04:17 (08:17 GMT) on the Investing.com Index on Wednesday, up 14.41% on the day. It was the largest...
Crypto will ‘come to life’ in Nigeria, central bank governor says
At a 279th meeting of the Monetary Policy Committee in Abuja, Central Bank of Nigeria Governor Godwin Emefiele expressed confidence that cryptocurrencies...
Altcoins rally as bulls pile into large-cap tokens and layer-1 projects
The cryptocurrency market provides investors with another day of 'altseason' as the majority of altcoins in the top 100 on CoinMarketCap rallied today....
DOGE out of control? Social media and whales sway Dogecoin price action
Dogecoin (DOGE) has been the talk of the crypto town in the month of April. On the first day of the month, it was trading in its usual $0.05 range. On April...
XRP price surges 55% to a 3-year high amid push for financial inclusivity
XRP price saw a 55% breakout over the past two days as the sixth-ranked cryptocurrency by market cap has renewed its focus on the creation of a cross-border...
SEC’s ‘Crypto Mom’ warns selling fractionalized NFTs could break the law
Speaking at Draper Goren Holm’s Security Token Summit on March 25, SEC commissioner Hester Peirce, also known as “Crypto Mom” warned the issuers of fractionalized...
Thomson Reuters Uses AI to Reveal People’s Fears Over BTC & Helps Investors
On March 12, the Canadian multinational information firm Thomson Reuters established what crypto investors have been dreaming of. And that’s a novel...
Why Bitcoin is No Longer Convenient for Transactions
Last year on December 17 bitcoin’s value reached an unprecedented rate of over $20,000, though the correction, which occurred a few days later, didn’t...