The rapidly evolving world of blockchain technology offers a variety of approaches and tokenomic models to solve the blockchain dilemma of creating a decentralized, stable and secure network.
One tokenomic model that has seen some fluctuations over the past year is the “rebase” model, which is designed so that token balances can fluctuate over time depending on changes in token prices and circulating supply.
Olympus (OHM) is a rebase project that has caught the attention of many in the crypto space for the past six months, largely thanks to the high rate of return offered to OHM traders, currently over 7,000%.
What sets Olympus apart from other protocols in the market, including other rebase projects like Ampleforth (AMPL), is that each OHM is an algorithmic reserve currency backed by a basket of assets rather than its main token at a stablecoin price of 1 USD fluctuates B. DAI or FRAX in the Treasury of Olympus and gives OHM an intrinsic value that cannot be undercut.
Fixed and associative game theory
The main way that Olympus users add value to their portfolio is by putting OHM on the protocol to earn rebase rewards.
Rebase rewards are paid out of the proceeds from the sale of bonds on the network and can fluctuate depending on the number of bonds sold, the reward rate set by monetary policy and the size of the OHM stake.
The long-term strategy behind the “staking” is to lock OHM on the log so long that even if the market price of the token falls below the original purchase price, an increase in the OHM balance is placed and an increase in the total value.
Bonds on Olympus are essentially a mix of a fixed income product, futures, and options. The bond will be listed with terms and conditions for a transaction on a future date, including a predetermined amount from OHM that the affiliate will receive upon completion of the request.
These linking functions allow the Olympus DAO to accumulate its own liquidity, known as POL, which is an important part of its overall concept as more POLs ensure that exit liquidity is always tied up. Trading pools facilitate market activity and protect token holders.
Initially, the project was initiated by an initial Discord offering (IDO) of $ 500, and within a month of listing, the price quickly soared to $ 1,487, near $ 163, prior to the market-wide crash. Even as the price fell, OHM producers continued to hoard money for the next month.
NS $ OHM Presale price is now $ 2.5 million if you hold up
There are less than ~ 5 people have done this pic.twitter.com/ruYiLKgJ92
– Jawsus Christ (@sayinshallah) October 8, 2021
Recently, members of the Olympus DAO team indicated that IDO contestants who never quit their initial holdings will find themselves in an OHM war chest valued at more than $ 1 million.
Related: The Treasury plans to crack down on stablecoins even if Tether’s dominance wears off
Develop your budget and your future plans
As the Olympus market grows, the protocol also accumulates revenue from the liquidity provider premiums paid into the project fund.
According to the protocol, the Olympus DAO Treasury Department currently holds more than $ 100 million in treasury assets and is second largest treasury in DeFi behind Uniswap.
Olympus has also shown that they have recently been keeping up with the latest developments in the crypto space being held Office hours to discuss two community proposals including the prospect of adding LUSD to the treasury and whether or not Olympus should implement the recently developed Ethereum (ETH) Layer 2 arbitrum solution. Recently, members of the TokeMAK community voted to add the Olympus DAO to their reactor network and an OHM / TOKE staking pool is expected to be introduced next month.
It remains to be seen how rebase projects like Olympus and Ampleforth will perform over time, but a quick look at the daily chart reveals that the OHM price is trading at $ 1,286 and is about to hit an all-time high .
While the concept is one of the newer paradigms in the cryptocurrency ecosystem, it is gaining attention as the global financial system appears to be in the middle of a transition to a new monetary standard.
The views and opinions expressed are those of the author only and do not necessarily reflect the views of Cointelegraph.com. Every step of investing and trading is risky, you should do your own research when making your decision.