OHM a balanced layer of Trust to the World of Cryptocurrencies
In the end its the narrative that dominates the crypto world, right? So, this article is an attempt to further nourish the OHM narrative even amidst this unBEARable market condition.
thru this article i am explaining as if you already have a brief understanding of how Olympus DAO works, if you are completely new to Olympus DAO & OHM, i suggest you watch this video first:
https://www.youtube.com/watch?v=QZOaZ9dd-ms&t=1s
Bitcoin has become a boomer coin, its name of ‘Digital Gold’ has been sealed.
Ethereum is a web3 ethernet, a smart contract internet protocol
Olympus aims at being a reserve de-bank, an anchor currency by the p3ople for the p3ople, the currency of web3. will it be?
Olympus DAO has 3 core aims its attempting to solve in the metaverse of cryptocurrencies
1- first, is to get away and unpeg crypto from a USD fiat (centralised reserve) currency that ties our (decentralized) metaverse assets together such as btc/usd, eth/usd etc…
2- is in the tagline… obviously
for a reserve currency to be trusted by the world, it must be transparent and owned by its members and have no central authorization.
What bitcoin began - the blockchain, an immutable/transparent chain of stored ‘trustable’ data — Olympus harnesses to create a decentral reserve currency for our digital assets and decentralised finance providing a layer of trust to what we call currencies.
3- create a balance between inflation and deflation mechanisms. learn to adapt to the market by itself, while generating value to protocols treasury and its holders simultaneously.
in the end, it is the market and its participants that price an asset and market participants are humans with emotions.
while the internet had bought an external force to the market which is, programmed logic which can transcend emotions, that logic still created by emotional humans. (think trading algorithms and trading strategies with code, all the centralized banks hire millions even billions of dollars to create the best logic to beat the market) from the internet to ethereum a rhyming cycle.
Ethereum bought to the blockchain a set of logical rules to create smart contracts that allow trustable decentralized transactions in more shapes and form than just money. now many people are investing time and money to create protocols to further benefit the blockchain. layers, upon layers.
🔁
“Ogres are like onions, Ogres have layers, Onions have layers. You get it? we both have layers” ~ Shrek
by using the ethernets logic, Olympus aims at creating a balance between inflation and deflation mechanisms inside the protocol, between fear and greed among the ohmies, hopefully creating a somewhat stable-ish backed reserve currency for defi. A layer of stabilization & trust to the value of the crypto asset world by adapting to the market participants emotions overtime.
if the market participants feel ohm is overvalued, they sell.
if the market participants feel ohm is undervalued, they buy. hold onto this thought
how does OHM react to the markets behaviour?
you’ve heard the statement, “ohm owns its own liquidity” before.
This is (POL — protocol owned liquidity a concept OHM pioneered), by Olympus owning its own liquidity it enables itself to be on the other side of the market participant. like a trading algo will buy when the human emotion who has programmed it to buy, due to that humans perception of what they think is overvalued & undervalued.
OHM has a slight twist, that is the Olympus Treasury can cover the buyer or the seller from its reserves of LP tokens, this adapts to behaviour and emotion of the participants which isn't always 100% governed by logic, as the waves of fear and greed swing their tides.
OHM generates income as well as giving the ohm tokens back to Olympus treasury, so then the community can decide what to do with the owned ohm (owhmned) the world play with ohm is vital to the narrative of the ecohmony, its great.
fear & greed are countered by the protocol as well as the power what to do with the OHM tokens, though olympus is just over a year old, its been thru many short term market cycles, giving olympus many stress tests so the market and the ohmies can find flaws in the system and work together to fix them.
OHM has been thru technically 3 bull markets, and 3 bear markets. all the more reason to further strengthen the 3,3 meme.. Olympus is evolving quickly
“OHM is backed”
our money was once gold, then it became backed by gold, now it is backed by trust.
we are in the gold revolution of the digital age.
our money then became digital gold, now digital currency will be backed by digital gold. (even though its mainly backed by Ethereum & stables, what bitcoin had begun, olympus adds a layer)
ohm is aiming for that crown, to be the anchor currency of digital the digital gold revolution which Ethereum created a layer into the blockchain revolution ;)
Our world is quickly losing this trust in the system as money continues to be printed and printed, creating an illusion of wealth generation even though the underlying power is quickly evaporating.
our main cryptocurrency bitcoin, mainly backed by the trust and conviction the people have in this anon project while having a set supply of 21 million, giving people confidence in the currency as a anti-inflationary currency, the first major solution to a continuously inflating & depreciating value of the fiat dollar. though is there a problem with this?
deflationary assets can cause everlasting and eternal greed to hoard onto more and more (look at all the institutions and even countries literally aping into bitcoin right now), creating an overall ever-uptrend, quickly pricing out more and more of lower wealth status citizens?
Dominance, an issue here with deflation, those who hold the most supply can control the direction of the currency too, right? will this not just come back to some form of central control?
there's no need for me to post the S&P chart of over 100 year (overall) bull market, i bet you have seen plenty of them already.
if not, look it up on a yearly chart, overall 83 years have been in an uptrend. from $9 to over $4500. up over a 450x in 100 years
this is slightly just an illusion you do not see because of inflation?
100 years ago, 1 dollar had a much larger purchasing power than it does today. while it seems more valuable, the inflation cancels out the appreciation of value. bad coin.
How far did 1 dollar really go over 100 years ago, comparison from 1920s
https://makechange.aspiration.com/how-far-did-a-dollar-really-go-100-years-ago/
all the basic necessities of life like food prices have increased by over 22x on average while the market cap the illusionary material world we have built is up a 450x.
if our overall aim of ‘cryptocurrency’ is to go fully decentralized and governed by the people, for the people, then why do we price our digital assets against worldly fiat dollars? the very ones we are all fed up with. lol.
for example, btc/usd, eth/usd, eth/btc… all ends up back at the very dollar we are trying to escape from.
Welcoming Mount Olympus DAO to All
the essence of Olympus DAO is to be a currency/asset that is backed by currencies & assets that we back with our trust- A Defi Reserve Currency.
OHM aims to trade as a stable-ish asset one day, though the market is still pricing in where that stable range will be and may take a while, may even fail of course, though i think the market is speaking clearly that this is something that is much needed in the space of cryptocurrencies. im here to show you that Y. and how it very well could enter another price discovery once more above $1366 top in October 2021.
Olympus is just over 1 year old, while bitcoin has had 13 years to find its way into the hearts of humankind. it has done a very successful job in achieving this mission by the market valuing it at around 811 Billion dollars, which is less than 10% of the total Gold market valuation. something something, you've seen these comparisons before too.
Olympus DAO is community-owned, so this means another form of bitcoin maxis generation are born.
The OHMIES, and they 3,3 work together & steer OHM in the direction of the strongest narrative. Bitcoin maxis have had 13 years, Ohmies have made a substantial footprint in the metaverse in just over 1 year.
ideas never die. what bitcoin aimed at, Olympus aims to further grow that narrative of a fully decentralized reserve currency/asset layered in the metaverse.
bitcoin is backed by the trust, scarcity and conviction that the world that gives it. An idea that has inspired humans to do something about those fed up fiat dollars that are backed by nothing but the trust, which has been uber bearish for a long time now. bitcoins inception began after the 2008 financial crisis a big turning point in that trust gauge.
OHM is backed by those backed and trust-backed currencies, providing the extra layer to a currency we can all agree on that when i store my $100 here, i know in the future its purchasing power will stay the same. maybe we are even still in the growth phase of where the market is pricing this at too.
Our digital assets revolution entire market valuation is 2 trillion dollars (February 2022) while bitcoin & Ethereum together have a cumulative value of over 1.2 trillion dollars, 60% of the entire crypto market cap.
The amount of trust and conviction in these 2 projects are showing the world what the world can do together when we all trust this blockchain thing, right?
its estimated there is 40 trillion dollars in circulation of 2022, meaning cryptocurrencies take up a mere 5% of the entire worlds net worth.
Too bad the world is in extreme debt to everyone and each other. if bitcoin is a Ponzi, if ohm is a Ponzi, the world is a Ponzi.
1.3 quadrillion dollars, where is it even coming from? is that the illusion of inflation, huh?
https://www.rankred.com/how-much-money-is-there-in-the-world/
unfortunately, the market is still operated by humans and their emotions, what’s the point on profits if to not utilize them, whether for personal, business or family or what have you use? whether its for good or bad use… we are humans, that's why their called ‘human emotions’. so how do we protect ourselves from market volatility?… stable coins.
Market participants do there thing a modern day gladiator realm, everyone is in the market to make money, true? its still a zero sum game either way, maybe one day that can change but you know what they say
“Emotions will never change, empires will fall, empires will rise”
stable coins are the 3rd biggest tier of cryptocurrencies after bitcoin and Ethereum (funny that right, 3…3).
The top 3 USD pegged stable coins being USDT, USDC & Binance USD, valuing at over 140 Billion dollars, roughly a 14% crypto market share. you know the problems with this as you had watched that video
for the top 3 algo stable coins being UST, DAI & FRAX a total value of 23.7 Billion as 2.37% market cap of all cryptocurrencies.
this totalling around a 16% of our entire digital currency in stable coins, coins we all know will be $1 now & later on when we wish to use that $1. but due to the nature of the usd dollar backed stable coin it runs the risk of losing value too.
Olympus creates not only a backing reserve, but a way for the protocol to generate income on its own by aiding the entire metaverse economy (its users & applications), so no central managing of the crypto assets is needed (the OHMIES will begin that most likely at a later date, remember this is still very early technology susceptible to many unforeseen circumstances, all while mitigating as much market volatility risk as possible (what does not kill you only makes you stronger ay).
The protocol will continually adapt and find balance as the participants shift from extreme fear to extreme greed until hopefully Olympus & the ohmies, can figure out the balance between both of those forces of the market players.
How Olympus generates a cash flow throughout the treasury providing overall health and growth of value to the protocol?
Olympus’ treasury owns stable coins, volatile assets such as Eth, as well as liquidity providing assets (LP tokens) & yield bearing assets thru governance control of the defi ecosystem (YBAs)
Currently OHM holds 484 million dollars worth of these four assets in its treasury, and more than 280 million dollars of these assets are small fee generating assets LPs & YBAs while the other portion is in stable coins and volatile assets (as of February 2022)
60% of the treasury produces small daily yields (which unfortunately still have slight volatility too)
40% of the treasury stored as stable coins and volatile assets
(i feel a closer balance towards the 80/20 rule will come to fruition on this ratio, to further mitigate the slight volatility by owning its own liquidity in partially volatile assets, such as (asset to stable coin) LPs & (asset: asset) LP & YBAs in curve war liquidity domination).
risk is unavoidable in markets, its about how you mitigate that risk is what matters over a long period of trials and tests.
access a view of these metrics I'll be sharing in this article here — https://dune.xyz/shadow/Olympus-(OHM)
how does OHM generate value to the protocol and the ohmies?
Now you can kind of see how Olympus is not just a currency, but also a business, a business that generates value for its market.
just like any normal business in the real world generates value its customers.
Ohm is looking to provide value to the greater sphere of the decentralized world of finance
OHM has 5 value generating assets with those stable coin, LP tokens & YBAs
1- the volatile assets like Ethereum.
if eth go up = value of ohm treasury goes up… cool, what happens when eth go down though?
OHM currently owns 50 Million worth of ETH (10% treasury value), if ETH drops 20% OHM eth reserves treasury loses 10 Million, in the grand scheme of the overall Olympus treasury this is only 2% of its total value, OHM mitigates some volatility here.(not accurate example, as the treasury owns more $ worth of volatile assets too)
2- by OwHNing over 150 Million in OHM/LP tokens (ohm/dai, ohm/eth etc.. 30% of the treasury)
when the emotional ohmies decide to buy or sell, Olympus DAO counters the markets emotions to provide that liquidity from the treasury to or from that ohmie, even though to date these fees have generated a small bonding fee of 37 Million.
The trend is up in the daily generated fees.
This adds up to be an average of $115,000 per day for the protocol, though the majority of this 37 Million has come from the last 5 months, when ohm has been in a bear trend since OHM found its final peak in price around $1366 usd in October.
OHM had only generated up to 5 Million in fees up to September 30th, half way through its last short bull run, 2 weeks before its top.
https://dune.xyz/queries/239518/448302
3- yield bearing assets in curve war stable farms coming from convex, a total of 50 Million worth of convex inside the OHM treasury(10% of treasury)
4- Olympus Pro partnerships, Olympus provides value to other value generating protocols by helping the protocol own their own liquidity too, Olympus uses bonding mechanisms to gather this liquidity all while keeping a small fee, currently OHM Pro has generated 61 Million in bonds to so far 22 protocols participate in OHMs POL bonding service Olympus earns a small fee from all these bonds, a mere scratch on the surface, though still is extra layer Olympus has added to provide value to the treasury, which will only strengthens OHMs tangible trustless backing.
5- of course soon the power of the liquidity war yield bearing assets will be boosted by redacted cartels BTRFLY, but that's a whole other story.
OHM is backed by stable coins, mitigating more market depreciation in bear trends and bringing balance to the force of the treasury: market cap ratio, a backing ratio.
OHM currently owns around 172 Millions dollars worth of stable coins, majority being algorithmic stable coins being DAI, LUSD & FRAX the top 3, have a look at how this alone mitigated a rather large percent of OHMs market cap all time high, 4.3 Billion dollars, while at that peak the treasury value was 873 Million dollars a 4:9 (treasury value/market cap value ratio, remember this number)
the price, treasury asset & market cap have all been bearish the past 100 days, but here we can see a rather large divergence in the treasury asset to market cap price.
The treasury value today is around 500 million only around a 30% drop from ATH in October from just over 800 million.
while the market cap is almost 700 million, over 80% bleed out from a 4.3 billion dollar market cap.
price of OHM ATH 1366 and current ATL $59 (over 90% bear) while backing is around $54 and has a runway of 645 days. at the (potential) bottom, as ohm rests on backing price if the ohmies continue to 3,3 and drive the narrative forward, just like the bitcoiners did all those years ago.
The ratio has shifted back to balance is it restored and renewed for another bull cycle? the market participants where extremely greedy, now they are extremely fearful (poor all ohmies we have lost, though many have been found)
the ratio now being a 1.2:1, i think this gives you a understanding of how Olympus aims to mitigate bear market activity and restore balance with value generation & its inflation and deflation mechanics (even though it has barely burnt any OHM tokens of yet — its still learning to mitigate its risk & become more stable to eventually burn supply) as even during this previous 100 days of OHM price downtrend, the protocol supply has inflated by over 3x to 11,000,000 tokens, from the top in October at only 3.3 million tokens.
the first deflation technique was the OHM inverse bonds, this was only released a few days ago when the market participants fought over the backing floor.
if ohm is below backing, then ohmies can decide to exit their 3,3 position and sell their ohm back to the treasury, deflating the ohm supply & keeping the value of everyone's percentage of the treasury stays the same.
may there come more forms of burning in the future too, most likely… seems like cryptocurrency players love ‘much burning’, Olympus will eventually adapt to the community too, going to be a rather fun narrative to ride, innit.
https://dune.xyz/queries/28599/57711
this is where it gets a little tricky for Olympus i think.
Staked OHM (sOHM) today we have roughly 51 Million sOHM and every time an sOHM is un-staked it is burnt into an equivalent amount of OHM most likely to be sold?
i think the ohmies struggle with this as it means if all sOHM were sold at the backing price today that would equal roughly 3 billion dollars. simply not possible at all, “Olympus will die they say”, which is not wrong at this point intime.
how is this problem mitigated? so far only really APY decline?
During Olympus’ inception it needed to have a rather large incentive curve to gather as many ohmies as possible who can see and believe in the vision of what Olympus has set out to achieve, this incentive was a large APY on your sOHM, over 100,000%.
now this is only a 850% APY, this is good as now that 51.3 million sOHM is only inflating at roughly 3.14% every 5 days and will slowly decline even further.
sOHM:OHM = 5:1, balance must be restored here as well?
I think a way we could solve this sOHM to OHM problem is enabling market participants to use sOHM to create LP tokens and burn sOHM straight from the sauce. maybe, use the OHM as an Initial Bonding offering (IBO) token, so if you give the IBO your sOHM, receive more of a discount… im not 100% sure right now, the DAO will decide that when the time comes.
This begins a new chapter in Olympus DAO brings more balance to the aspects of ohm, as it continues to grow and generate value for Defi.
So far Olympus has gained a lot of attention from the cryptocurrency participants, it has been called a Ponzi, a scam and many more in its last year, all while continuing to generate value for Defi, the ohmies (3,3ers) & various Defi protocols.
since i began my bitcoin journey (bull market top of 2017) i have seen bitcoin been called dead, a scam & many more, that still even 8 years after its inception in 2009. cryptocurrency certainly has evolved in the past 2 years since Defi became a revolution in 2019–2020.
“history does not repeat, but it sure does rhyme”
Olympus has been forked over 100 times, in its first year of being alive, unfortunately this created the illusion of how ‘scammy it is’, because most OHM forks were actually valueless Ponzi's & many rugs.
on the brighter side of the mountain, look what OHM has successfully achieved, even through all the noise of said Ponzi scams, it is still here generating value and recruiting more and more ohmies to the vision each day.
i remember beginning trading in mid 2019, trading crypto 1 week felt like 1 week, now crypto seems much more noisier and 1 week feels like 1 year. maybe this means that growth, acceptance and trust is built much faster too?
it has taken bitcoin 13 years to get to where it is (continuing to evolve and price itself), ohm is just over a year old. don't forget, its patience that makes the money you desire.
bitcoins first 4 years managed to attract over 1.5 billion dollars, though for the first 2–3 years, it was hardly accessible by the majority, the idea of cryptocurrency had only just begun, bitcoin built the infrastructure and it has become adopted globally, Ethereum added a layer to create a broader internet on the blockchain, Olympus adds another layer to the broader sphere of cryptocurrencies.
“if only i bought bitcoin in its early phases and held on for 10 years” are the cries of the masses.
“if only i bought Ethereum ICO and held on for 5 years”
“if only i bought doge in 2019 and held for 2 years and sold”
“if only… if only… if only…”
will “if only I bought and held ohm in its 2021 or 2022” will be a quote of the masses in the not so distant future?
Moore's law states that technology doubles in speed and half's in size and half's in cost every 2 years, can this be applied to cryptocurrency too? (even though the Moores law was based on transistors, check this out)
https://www.investopedia.com/terms/m/mooreslaw.asp
I think so, as it is exponential growth.. Steve jobs had once said “a computer is a bicycle for the mind”
revolutionary technology, its hard to understand at first, its usually giga brained technology that most people cannot see until its right Infront of them, will Olympus become one of these technologies, that was so obvious in hindsight of February of 2027? i believe so, but i guess we have to sit on our hands and 3,3 our way thru this journey together?
the law of diffusion of innovation.
what bitcoin created the blockchain, Ethereum used the blockchain and created web3 internet, ohms aim is to be web3s reserve currency.
what will be the next wave of innovation, what inside the cryptocurrency world DEFI, NFTs, GAMEfi? maybe even all of them.
If the metaverse is to continue in a decentralized way, the way it was intended too by bitcoin, ohm can easily be the anchor currency for the entire crypto metaverse.
(a view of the stages of the laws of diffusion of innovation, for when we reach half way, it is the late majority. sorry we are not early to bitcoin anymore, but, we are early to the world inside cryptocurrencies, built on top of Ethereum & (other layer 1s of course))
ohm as of feburary 2022 is probbaby inside the early adopters, i dunno maybe even the early majority, we can only connect the dots looking backwards as Steve Jobs had once said, i think we are mid way thru early adopters as the amount of noise between ‘this is the next big thing’ and ‘this is the biggest scam of all’ two narratives is very strong.
there is still incentive to hold sOHM, as the more sOHM you have the more you can contribute to governance and aim to direct the protocol as the people, for the people. the protocol is still in its infancy, it has shown immense strength to continue the key narrative amidst all the noise and dramas.
so there is still a rather large incentive to hold for price appreciation, in my opinion.
so much so that yes, i am invested and joined the ohmies with a strong conviction January 11th (at what i thought was a double bottom at the time) and am now dollar cost averaging in ever few days between 200–60 thus far (as backing rests in the 50 levels & price holds it).
I had found out about it in late September almost at the pinnacle top i noticed the market hysteria of all its forks, but yes, did get rugged once from a Ponzi ohm fork, a new mistake to learn from.
though learnt from my first mistake in cryptocurrency of buying the hype top on bitcoin 2017, i managed to avoid buying the top of ohm. phew.
if emotions never change, then the quote “show me the charts i’ll show you the news” still have value in this crazy experiment of crypto protocol liquidity
even though that was not the final capitulation before the accumulation began, ohm bled another 60%. ohm seems to have found its accumulation floor just above the current backing price of mid $50.
I believe the backing price will be the accumulation (has shown solid strength that the market does price ohm at backing price)
there can be no chart showing without a wycoff schematic now can there.
Are we in the phase C — spring zone for OHM? definitely looks like it and the ohmies will grow stronger as bulls about the 160 levels as the test. accumulation may take time.
around the same time as bitcoin was making a mid term bottom around the 33k level & today breaking an important level of 41k for the bulls to reclaim strength.
https://twitter.com/PythagorOhm/status/1477528858228232192
Olympus is such a gigabrain idea, so complex, and interesting, that as it evolves it will continue to need nourishment & adaption to a healthy evolving narrative. 3,3
future alfa leak???
soon will there will be a new form of bubble trend & that will be Initial Bond Offering “IBO” tokens?
kind of like the 2017 ICO (initial coin offering) and 2019 IEO (“ exchange “). and other forms of I#Os along the way.
2022 or 2023 IBO? meaning most protocols will pump that initialize with an IBO through Olympus, but most will end up crashing and burning, hurting Olympus once more and pushing the limits of the protocol into another bear market for a duration of time until the market regains confidence and finds balance once again, maybe in that part of the cycle we will see more deflationary mechanisms unlock in Olympus DAO. who knows, just a thought i have about the future of Olympus and its many cycles it will go through, ohm is here to stay, i hope you can see why now.
if i have inspired you towards the vision of Olympus DAO, i would love if you gave me a follow on twitter where I post charts about trading and random thoughts about the market.. remember though, i am wrong 99% & right 99% of the time.
https://twitter.com/PythagorOhm 🤝
Olympus website: https://www.olympusdao.finance/
Olympus Discord: https://discord.gg/4wEuVGGQ (be one of the first OHMIES to be updated on news & developments)
i am so excited for the future of OlympusDAO, lfg ohmies.
