Article Summary, Automatically Generated By AI
About Olympus v1
Key Points
- Olympus is an algorithmic currency protocol aiming to become a stable crypto-native currency.
- OHM is backed but not pegged to a certain price, with a price floor of 1 DAI.
- The protocol uses reserve assets like DAI to manage its price and maintain a floating market-driven price.
- Olympus is run as a DAO, governed by its community in a fully decentralized manner through smart contracts.
- The founders are a group of anonymous accounts, with “Zeus” and Jeff Extor being main code contributors.
Unique Features
- Olympus owns a treasury that mints and
Introducing Olympus v1: A New Era of Innovation
Olympus (OHM): A Comprehensive Overview
Olympus is an innovative algorithmic currency protocol striving to become a stable, crypto-native currency. While often referred to as an algorithmic stablecoin, Olympus more closely resembles a central bank, as it leverages reserve assets like DAI to manage its price. The ultimate goal is to achieve price stability while maintaining a floating market-driven price. A key distinction between OHM and stablecoins like USDC lies in the fact that OHM is backed but not pegged to a specific price. Technically, the price floor for OHM is 1 DAI, but in practice, a premium and the treasury value are added to the price. Notably, OHM differs from other algorithmic stablecoins, such as Ampleforth (AMPL), in that it issues OHM to acquire DAI and other assets, thereby maintaining a treasury. This mechanism bears similarities to FEI; however, the key difference lies in the fact that FEI maintains a dollar peg, whereas Olympus allows its token to float freely.
The Visionaries Behind Olympus: Meet the Founders
Olympus operates as a decentralized autonomous organization (DAO), where governance is entrusted to its community, functioning in a fully decentralized manner through the execution of smart contracts. The protocol was established by a group of anonymous individuals, known by their pseudonyms “Zeus,” “Apollo,” “Unbanksy,” and “Wartul.”
According to GitHub, the primary code contributors have been the enigmatic “Zeus” and Jeff Extor. Rumors abound that Zeus, a teenager, has captivated the community with his charismatic persona. Prior to the initial launch, Olympus had secured backing from a select group of private investors, including Zee Prime Capital, Nascent, D64 Ventures, Maven11 Capital, and several anonymous individuals.
Unveiling the Unparalleled Excellence of Olympus
Olympus has garnered significant attention as one of the most fascinating economic experiments in the DeFi space, and for good reason. At its core, Olympus boasts a treasury that dynamically adjusts its supply of OHM tokens in response to market fluctuations. When OHM’s market price exceeds its predetermined floor of 1 DAI, the treasury mints and sells new tokens. Conversely, when the price dips below this threshold, the treasury buys back and subsequently burns OHM tokens. The issuance of OHM is facilitated through a process known as bonding, wherein users can exchange assets such as FRAX, DAI, or wETH for discounted OHM tokens. Alternatively, users can opt to provide liquidity to the SushiSwap pool by contributing FRAX-OHM or DAI-OHM pairs, also receiving discounted OHM in return. Following a five-day vesting period, the bond is redeemed, marking the culmination of this innovative process.
Users also have the option to stake OHM, thereby reducing the circulating supply of OHM on the open market and generating value for the protocol. Notably, staking rewards on Olympus are exceptionally high, currently exceeding 7,000% APY, down from an astonishing 100,000% at the protocol’s inception. Furthermore, staking rewards are automatically compounded every eight hours. The primary objective of these substantial rewards is to incentivize users to accumulate more OHM, rather than relying solely on potential appreciation in USD terms. The protocol acknowledges that the price of OHM may, and potentially should, decrease in dollar terms in the long run. However, the aggressive accumulation strategy is designed to expand the protocol’s market capitalization and grow its treasury.
Notwithstanding its initial lack of practical applications beyond augmenting its treasury, Olympus has recently unveiled Olympus Pro. This innovative development enables the DAO to offer its bonds as a service to carefully selected partner protocols, thereby empowering them to bolster their own treasuries, rather than relying on “mercenary capital” in the form of liquidity pools.
Lastly, Olympus has garnered a reputation for its exceptional marketing prowess and ingenious meme creation, which has enabled the platform to cultivate and nurture one of the most dynamic and thriving communities in the space. The introduction of the “3,3” meme, a clever simplification of the concept that staking capital with the protocol is mutually beneficial, has been a resounding success. This innovative twist on the “hodl” meme, popularized by the Bitcoin community, has become an ubiquitous addition to Twitter handles, often appearing alongside .eth addresses.
Olympus (OHM) Coin Circulation: Understanding the Total Supply
With its design as a free-floating currency, the total supply of OHM remains uncapped. Notably, over 1.7 billion OHM are currently staked within the network. Prior to the “Initial Discord Launch,” which granted early non-US participants in the Olympus Discord channel access to a private sale, the team vested pOHM, a derivative of the primary OHM token. This mechanism enables the team to mint OHM for every pOHM, which is subsequently burned. The vesting schedule is as follows:
Team: 330 million pOHM, comprising 7.8% of the total supply
Notable Investors: A substantial allocation of 70 million pOHM, equivalent to 3% of the total supply, has been reserved for esteemed investors.
Advisors: Allocated 50 million pOHM, equivalent to 1% of the total supply.
Holders of pOHM are incentivized to contribute to the protocol’s growth, as they stand to benefit from a substantial allocation of between two and five billion OHM upon vesting.
The Olympus Network’s Robust Security Framework: A Comprehensive Overview
OHM is an ERC-20 token built on the Ethereum blockchain, operating under a decentralized autonomous organization (DAO) framework that continually incorporates innovative updates through Olympus Improvement Proposals (OIPs).
ERC-20 is the de facto token standard that the majority of newly minted tokens adhere to when launching on the Ethereum blockchain. As one of the most popular blockchain platforms for decentralized autonomous organizations (DAOs), Ethereum relies on a proof-of-work consensus mechanism, which necessitates the mining of new Ether by miners. A network of decentralized nodes is responsible for validating transactions and ensuring the integrity of the Ethereum blockchain.
Olympus Trading: Anticipated Launch Timeline
Olympus underwent its presale from March 12 to March 14, 2021, marking a pivotal milestone in its development.
Acquiring Olympus (OHM): A Comprehensive Guide to Exchanges and Marketplaces
OHM is conveniently listed on prominent decentralized exchanges, including UniSwapV2 and SushiSwap, ensuring seamless accessibility for users.
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