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One of my favourite projects in the crypto space right now is @OlympusDAO $OHM
It is a complex protocol, and can be frustrating for new users to try and learn.
From a 12IQ perspective, I will attempt to make this thread as user friendly for people to learn. Let's begin
It is a complex protocol, and can be frustrating for new users to try and learn.
From a 12IQ perspective, I will attempt to make this thread as user friendly for people to learn. Let's begin
1) Ironically, one of the most used assets in crypto, is $1 pegged, digitized US dollars. (USDT, USDC etc)
I think it's important to clarify $OHM has 2 Very DIFFERENT short term / long term goals.
Olympus can be tuned to optimize for different things. Let's dig deeper
I think it's important to clarify $OHM has 2 Very DIFFERENT short term / long term goals.
Olympus can be tuned to optimize for different things. Let's dig deeper
2) Short term goal: "Ser, why buy stable coin for $600 if price will go down in the longterm"
Because anon, when you buy and stake $OHM, you captured a % of the supply which will remain constant, price does not matter long term. Your supply will increase with the insane APY.
Because anon, when you buy and stake $OHM, you captured a % of the supply which will remain constant, price does not matter long term. Your supply will increase with the insane APY.
3) At the time of writing this tweet, this is the current price / APY (both variable, and subject to going even higher / lower)
Buy 1 $OHM right now, based off the rates right now, in 1 year of staking, you should end up roughly 1538 $OHM.
Buy 1 $OHM right now, based off the rates right now, in 1 year of staking, you should end up roughly 1538 $OHM.
So if the market decides in 1 years time the Intrinsic Value of $OHM to be around $10 (hint, it's going to be more)
I hope you are now starting to see this expensive $OHM, is simply just paying the premium of the longterm benefits
1538 x $10 = $15380
I hope you are now starting to see this expensive $OHM, is simply just paying the premium of the longterm benefits
1538 x $10 = $15380
"SO WHEN WE STAKE WE GET 158396% / 365 = 434% DAILY?!"
Slow down there autist, this isn't simple interest, but compound interest.
10 ohm at ~0.61 rebase every 8 hours
10ohm will be 10.061ohm
Then next rebase earn 0.6% on new balance.
Earn interest on previously earned interest
Slow down there autist, this isn't simple interest, but compound interest.
10 ohm at ~0.61 rebase every 8 hours
10ohm will be 10.061ohm
Then next rebase earn 0.6% on new balance.
Earn interest on previously earned interest
How the protocol does this and how much the treasury needs to grow in order to do this I will leave up to you to figure out. (Hint, we can keep these rewards up for MONTHS) the $OHM ies already (3, 3) are sitting back growing their ohm supply daily.
Let me be EXTRA crisp. OHM not pegged to the dollar. NEVER will be. Each OHM is backed by 1dai ( meaning if $OHM somehow ever trades below $1, we buy it back and burn it, reducing the supply)
Will it stabilize at $3.3? $6.9? $42.0? Who knows. You just want all the supply u can
Will it stabilize at $3.3? $6.9? $42.0? Who knows. You just want all the supply u can
To recap everything just incase you apes still didn't learn anything.
Staking is a passive, LONG TERM strategy. Your supply of $OHM will start growing slowly.. Then SUDDENLY turn exponential.
Bonders care about price, stakers care about $OHM BALANCE
Staking is a passive, LONG TERM strategy. Your supply of $OHM will start growing slowly.. Then SUDDENLY turn exponential.
Bonders care about price, stakers care about $OHM BALANCE
Kindly retweet / like to spread awareness and please don't hesitate to call me out if I said some misinformation ( this is how I view the protocol). The community is amazing and hilarious full of people all over the IQ bell curve
Cc @CryptoCartesius for some hilarious gifs
Cc @CryptoCartesius for some hilarious gifs
