The quickly evolving world of blockchain know-how affords a variety of approaches and tokenomic fashions aimed toward fixing the blockchain trilemma of making a decentralized, steady and safe community.

One tokenomic mannequin that has seen a number of variants over the previous 12 months is the ‘rebase’ mannequin, which is designed in a manner in order that token balances can fluctuate over time relying on adjustments within the token worth and the provision in circulation.


Olympus (OHM) is a rebase venture that has caught the eye of many within the crypto area over the previous six months — largely due to the excessive yield provided to OHM stakers, which is at the moment above 7,000%.

Olympus staking dashboard. Supply: Olympus DAO

What units Olympus aside from different protocols available in the market, together with different rebase tasks like Ampleforth (AMPL), is that reasonably than having its major token fluctuate across the stablecoin worth of $1 USD, every OHM is an algorithmic reserve foreign money backed by a basket of belongings, reminiscent of DAI or FRAX, which can be held within the Olympus treasury and provides OHM an intrinsic worth under which it can not fall.

Staking and bonding sport principle

The principle manner Olympus customers enhance the worth of their portfolios is thru staking OHM on the protocol to earn rebase rewards.

Rebase rewards are paid for by the proceeds from bond gross sales on the community and may fluctuate relying on the variety of bonds offered, the reward fee set by financial coverage and the variety of OHM staked.

The long run technique behind staking on the community entails locking OHM on the protocol lengthy sufficient in order that even when the market worth of the token drops under the preliminary buy worth, the rise within the steadiness of staked OHM ought to finally outpace the autumn in worth and will probably result in a rise in complete worth.

Bonding on Olympus is basically a cross between a hard and fast revenue product, a futures contract and an possibility. Bonders are quoted with phrases for a commerce at a future date, which embrace a predefined quantity of OHM that the bonder will obtain as soon as vesting is full.

These bonding capabilities make it potential for the Olympus DAO to build up its personal liquidity, known as POL, which is a crucial a part of its total design as extra POL ensures that there’s at all times locked exit liquidity in buying and selling swimming pools that helps to facilitate market operations and defend token holders.

Initially, the venture launched by way of a $500 preliminary Discord providing (IDO) and inside a month of itemizing, the value shortly rose to $1,487 earlier than the market-wide crash within the second week of April pushed the value again to its itemizing worth close to $163. Even with the value scrapping a swing low, OHM stakers continued to stack cash over the next month.

Just lately, members of the Olympus DAO staff identified that IDO individuals who by no means unstaked their preliminary holdings could be sitting on a OHM conflict chest with a worth of over $1 million.

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Rising treasury and future plans

Because the Olympus market grows, the protocol additionally accrues income from liquidity supplier rewards, that are deposited into the venture’s treasury.

In response to information supplied by the protocol, the Olympus DAO treasury now holds greater than $100 million in treasury belongings and is the second-largest treasury in DeFi behind Uniswap.

Olympus has additionally proven that it’s maintaining with the newest developments within the crypto area because it just lately hosted workplace hours to debate two of the proposals dealing with the group: the prospect of including LUSD to the treasury and whether or not Olympus ought to deploy to the just lately launched Ethereum (ETH) layer-two answer Arbitrum. Just lately, members of the TokeMAK group voted to incorporate Olympus DAO in its reactor community and throughout the subsequent month, an OHM/TOKE staking pool is anticipated to launch.

OHM/DAI every day chart. Supply: TradingView

It stays to be seen how rebase tasks like Olympus and Ampleforth will carry out over time, however a fast look on the every day chart reveals that OHM worth is buying and selling at $1,286 and on the verge of achieving a brand new all-time excessive.

Whereas the idea is likely one of the newer fashions to emerge within the crypto ecosystem, it’s a improvement that’s garnering consideration as the worldwide monetary system seems to be within the means of shifting to a brand new foreign money customary.

The views and opinions expressed listed here are solely these of the writer and don’t essentially mirror the views of Each funding and buying and selling transfer entails danger, it’s best to conduct your individual analysis when making a call.

The views and opinions expressed listed here are solely these of the writer and don’t essentially mirror the views of Each funding and buying and selling transfer entails danger, it’s best to conduct your individual analysis when making a call.