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Olympus Dao is producing ~$200mm of annualized run rate earnings and is one of the most undervalued protocols in DeFi.
It is quickly becoming a true decentralized Central Bank and recent protocol upgrades make $OHM a more attractive investment.
Allow me to educate.
1/
It is quickly becoming a true decentralized Central Bank and recent protocol upgrades make $OHM a more attractive investment.
Allow me to educate.
1/
For newcomers, below is my prior thread, which provides a brief explanation on how Olympus DAO worked prior to changes. https://twitter.com/HighCoinviction/status/1375601364533981190
OHM/DAI SLP Bonds have been a huge success and helped Olympus accumulate ~$13 million liquidity thus far (75% of OHM/DAI).
As a result, the community has opted for the elimination of the sales contract and has doubled down on its bonding model with the introduction of DAI Bonds.
As a result, the community has opted for the elimination of the sales contract and has doubled down on its bonding model with the introduction of DAI Bonds.
DAI Bonds are a major development because it will allow @OlympusDao to mint $OHM 1:1 with the market value of the assets it receives.
This means Olympus will be able to accumulate DAI for its treasury at a significantly higher rate $$$
This means Olympus will be able to accumulate DAI for its treasury at a significantly higher rate $$$
Moreover, there are meaningful advantages to the protocol using DAI bonds instead of the Sales contract.
1) Bonding system requires less management
2) $OHM price is dictated by free markets
3) Bonds defer the market impact of new supply
1) Bonding system requires less management
2) $OHM price is dictated by free markets
3) Bonds defer the market impact of new supply
Now you may think more OHM being minted is bad for price.
Nope. DAI Bonds are currently limited to 0.05% of circulating supply each, and that limit will increase progressively over time.
In other words limited impact for now.
Nope. DAI Bonds are currently limited to 0.05% of circulating supply each, and that limit will increase progressively over time.
In other words limited impact for now.
More importantly a larger treasury is great for Olympus DAO
1) Higher protocol intrinsic value
2) More protocol optionality (i.e. generate yield on treasury and build stake in other projects)
1) Higher protocol intrinsic value
2) More protocol optionality (i.e. generate yield on treasury and build stake in other projects)
The growth in intrinsic value ultimately benefits $OHM stakers the most as it leads to larger rebases and a higher APYs (assuming prices remain constant).
The (3,3) dream is still alive. OHMIES TOGETHER STRONG.
The (3,3) dream is still alive. OHMIES TOGETHER STRONG.
But what if I told you Olympus Dao was a fee generating machine even prior to these changes.
Data for April MTD shows treasury assets grew by ~$11mm, and this is viewed as earnings for stakers as the protocol mints against its treasury.
Annualized thats ~$200mm in fees.
Data for April MTD shows treasury assets grew by ~$11mm, and this is viewed as earnings for stakers as the protocol mints against its treasury.
Annualized thats ~$200mm in fees.
That would essentially imply that Olympus Dao currently trades at a distressed multiple despite showing strong earnings growth.
Circulating P/E: 0.6x
Fully Diluted P/E: 5x
S&P500 P/E: 18x
Earnings growth will only further accelerate with the large roll out of DAI Bonds.
Circulating P/E: 0.6x
Fully Diluted P/E: 5x
S&P500 P/E: 18x
Earnings growth will only further accelerate with the large roll out of DAI Bonds.
A simple multiple re-rate would easily imply that $OHM token price could be multiples higher.
Did I also mention that the community and founder @ohmzeus are world class?
Did I also mention that the community and founder @ohmzeus are world class?
The setup for $OHM also lines up very well:
1) Accelerating earnings growth amongst entering the next Alt SZN
2) Minimum downward price pressure due to elimination of sales contract and DAI bond orders being capped.
3) Strong community (90% still staking)
1) Accelerating earnings growth amongst entering the next Alt SZN
2) Minimum downward price pressure due to elimination of sales contract and DAI bond orders being capped.
3) Strong community (90% still staking)
The introduction of DAI Bonds is a massive win for Olympus DAO and will allow earnings growth to grow at an exponential rate.
The protocol is deeply undervalued, and backed by a world class community and founder focused on creating value.
To the Heavens.
The protocol is deeply undervalued, and backed by a world class community and founder focused on creating value.
To the Heavens.
