Olympus DAO in 2mins

Summary

Olympus DAO, founded pseudonymously by 'Zeus,' is a decentralized reserve currency project based on the OHM token. It aims to preserve purchasing power through community governance and backing by reserve assets like DAI. The protocol offers high APYs for staking and has a bond system for discounted token purchases. Despite legal claims against co-founders and the experimental nature of the protocol, Olympus DAO is seen as an innovative economic experiment in the crypto space.

Takeaways

• 🌐 Olympus DAO was founded by a pseudo-anonymous individual named Zeus with the goal of creating a decentralized reserve currency.
• 📈 The project gained significant attention, reaching a market cap of over 4 billion USD by mid-November 2021.
• 🛡️ Olympus DAO is a reserve cryptocurrency based on the OHM token, designed to preserve purchasing power and backed by reserve assets.
• 🗳️ The Olympus protocol is community-managed, with decisions made through voting by OHM token holders.
• 💼 The value of the OHM token is backed by the Olympus treasury, which primarily consists of DAI and other cryptocurrencies.
• 🔐 The treasury contract requires approval from at least four of eight signers for any transaction.
• 💹 When the value of the treasury's reserve assets exceeds the total supply of OHM tokens, the protocol automatically mints additional OHM tokens as staking rewards.
• 🚀 Olympus DAO offers a high APY of 468% for staking OHM tokens, though this is significantly lower than the 7000% APY offered around November 2021.
• 🔗 The protocol includes an Olympus Bonds feature, allowing users to deposit cryptocurrencies for discounted OHM tokens and earn yield through lending.
• 💧 Olympus DAO owns its own liquidity, generating revenue for the treasury through collected fees.
• 🔄 The protocol was upgraded to Olympus V2 by the end of 2021, introducing features like on-chain governance and auto-staking for bonds.
• ⚖️ Despite the innovative concept, Olympus DAO remains an experimental protocol with legal claims against its co-founders, raising questions about its legitimacy.

Q & A

Who is the founder of Olympus DAO?

Olympus DAO was founded by a pseudo-anonymous individual known as Zeus.

What was the purpose behind creating Olympus DAO?

The purpose of creating Olympus DAO was to establish a decentralized reserve currency.

What was the total market cap of Olympus DAO around November 2021?

In the middle of November 2021, Olympus DAO's total market cap reached over 4 billion US dollars.

What is the role of the OHM token in the Olympus protocol?

The OHM token is the reserve cryptocurrency of the Olympus protocol, designed to preserve purchasing power and be highly liquid, backed by reserve assets.

How is the Olympus protocol governed?

The Olympus protocol is governed by the community of OHM token holders, with all decisions regarding the protocol made through voting.

What primarily backs the value of the OHM token?

The value of the OHM token is backed by the Olympus treasury, which mainly consists of DAI and other cryptocurrencies.

How is the Olympus treasury contract managed?

The treasury contract is managed by eight signers and requires at least four signers to approve any transaction.

What happens when the value of the treasury reserve assets exceeds the total supply of OHM tokens?

When the value of the treasury reserve assets divided by the total supply of OHM tokens exceeds one, the Olympus protocol automatically mints additional OHM tokens and distributes them as staking rewards.

What is the current APY offered by Olympus DAO for staking OHM tokens?

As of the script's latest update, Olympus DAO offers an APY of 468 percent to anyone who stakes their OHM tokens.

What is the Olympus Bonds protocol, and how does it work?

The Olympus Bonds protocol allows bonders to deposit specific cryptocurrencies into the Olympus treasury in exchange for discounted OHM tokens. A portion of the deposited cryptocurrencies is then automatically lent to protocols like Aave to earn yield.

What new features were introduced in Olympus V2?

Olympus V2 introduced new features such as on-chain governance and auto-staking for bonds.

What are some concerns regarding the legitimacy of Olympus DAO?

There have been lawsuit claims against co-founders of the Olympus DAO, with allegations of an early funder being cheated out of nearly 4 million in OHMs, which raises questions about the legitimacy of the team behind the protocol.

How should one view the Olympus DAO project at this stage?

While it's too early to determine if Olympus DAO is a failure or a revolutionary protocol, it can be seen as an interesting economic experiment that may contribute to building better protocols in the future.

Outlines

00:00

🚀 Introduction to Olympus Pro

Olympus Pro, also known as Olympus Dow, is a decentralized reserve currency project initiated by a pseudonymous founder named Zeus. The project gained significant attention, reaching a market cap of over 4 billion USD by mid-November 2021. The video, created by Alex and voiced by Joelle, aims to educate viewers about the nature and operation of Olympus Dow, emphasizing that it is not financial advice. The Olympus Dow is a reserve cryptocurrency based on the OHM token, designed to maintain purchasing power and liquidity, backed by reserve assets such as DAI and other cryptocurrencies. The Olympus protocol is community-managed, with decisions made through voting.

🏦 The Olympus Protocol and Treasury Management

The value of the OHM token is supported by the Olympus treasury, which primarily consists of DAI and other cryptocurrencies. The treasury contract is overseen by eight signers, requiring at least four to approve any transaction. The protocol automatically mints additional OHM tokens when the value of the treasury's reserve assets per OHM token exceeds one. These new tokens are distributed as staking rewards. Olympus Dow offers a high APY of 468 percent for staking, a significant decrease from the 7,000 percent APY offered in November 2021. This high APY has led to numerous forks of the Olympus Dow protocol, each promising higher returns.

🔗 Olympus Bonds and Liquidity Ownership

Olympus Dow features a bond protocol allowing participants to deposit specific cryptocurrencies into the treasury in exchange for discounted OHM tokens. A portion of the deposited assets is then automatically lent to other protocols like Aave to generate yield for the treasury. Bonders can also deposit LP tokens for discounted OHM tokens. Olympus Dow owns its own liquidity, creating a revenue stream from collected fees for the treasury.

🛠️ Olympus V2 Protocol Upgrades

Towards the end of 2021, Olympus Dow upgraded its protocol to Olympus V2, introducing features like on-chain governance and auto-staking for bonds. While all related contracts are live, some smart contracts are still undergoing audits according to the latest updates from the official site.

🤔 Legitimacy and Future of Olympus Dow

Despite the innovative concept of a reserve-backed protocol, Olympus Dow is still considered experimental and based on game theory economic concepts. There have been legal claims against co-founders of the Olympus DAO, with allegations of an early funder being defrauded of nearly 4 million OHMs, casting doubt on the legitimacy of the team. However, it is too early to determine if Olympus Dow is a failure or a revolutionary protocol. The project is seen as a significant economic experiment that could inform the development of future protocols.

Keywords

💡Olympus Dow

Olympus Dow is a decentralized reserve cryptocurrency project based on the OHM token. It was created with the aim of preserving purchasing power and being highly liquid, backed by reserve assets. In the video, Olympus Dow is discussed as a subject of interest due to its high market cap and unique economic model, which includes staking rewards and a bond protocol.

💡Decentralized

Decentralized refers to systems or networks that are distributed and operate without a central authority. In the context of Olympus Dow, it means that the project is not controlled by a single entity but is managed collectively by its community of stakeholders, which aligns with the theme of a community-driven protocol.

💡Reserve Currency

A reserve currency is a foreign currency that is held in significant quantities by governments and institutions as part of their foreign exchange reserves. In the video, the term is used to describe the purpose of Olympus Dow, which is to act as a stable store of value backed by reserve assets.

💡Market Cap

Market capitalization is the total market value of a company's outstanding shares of stock. In the script, the term is used to highlight the significant growth and value of Olympus Dow, which reached over 4 billion US dollars at its peak in November 2021.

💡Staking

Staking in the context of cryptocurrencies involves participating in a protocol by locking up one's tokens to support the network, often in exchange for rewards. The video mentions that Olympus Dow offers staking rewards, which is a key feature of the project that incentivizes users to hold and support the protocol.

💡APY (Annual Percentage Yield)

APY is a measure of the annual rate of return on an investment, including the effect of compounding interest. The video script discusses the high APY offered by Olympus Dow, which was initially around 7,000% and later dropped to 468%, as a significant factor attracting users to stake their tokens.

💡Forking

Forking in the context of protocols refers to creating a new version or a copy of an existing project, often with some modifications. The script mentions that the high APY of Olympus Dow led to many forking its protocol, each offering even higher APYs, which is a common practice in the DeFi space.

💡Treasury

In the financial context, a treasury is a repository of assets. For Olympus Dow, the treasury is backed by reserve assets like DAI and other cryptocurrencies, which support the value of the OHM token. The script explains that the treasury is managed by a contract that requires multiple signers for transaction approval.

💡Bond Protocol

A bond protocol in the context of Olympus Dow allows users to deposit specific cryptocurrencies into the treasury in exchange for discounted OHM tokens. The script describes this as a mechanism for users to earn a discount on OHM tokens while also contributing to the treasury's assets.

💡Liquidity

Liquidity refers to the ability of an asset to be easily bought or sold in the market without affecting its price. The video mentions that Olympus Dow owns its own liquidity, which is crucial for the smooth functioning of the protocol and for providing a revenue stream through collected fees.

💡DAO (Decentralized Autonomous Organization)

A DAO is an organization represented by rules encoded as a computer program that is transparent, controlled by organization members and not influenced by a central government. The script refers to the Olympus protocol being managed by a community of holders, which is a characteristic of a DAO, emphasizing the decentralized governance aspect of the project.

💡Game Theory

Game theory is the study of mathematical models of strategic interaction among rational decision-makers. The script mentions that Olympus Dow is built around the economic concepts of game theory, which is likely referring to the strategic incentives and disincentives designed into the protocol to encourage certain behaviors among its users.

💡On-chain Governance

On-chain governance refers to the process of making decisions about a blockchain protocol directly on the blockchain, rather than off-chain. The video script mentions the introduction of on-chain governance in Olympus v2, which allows for more transparent and decentralized decision-making processes.

💡Smart Contracts

Smart contracts are self-executing contracts with the terms of the agreement directly written into code. The script refers to the Olympus v2 upgrade, which includes smart contracts that are still being audited, indicating the importance of security and verification in the blockchain ecosystem.

Highlights

Olympus Dow was founded by a pseudo-anonymous individual named Zeus with the goal of creating a decentralized reserve currency.

The project gained significant attention, reaching a market cap of over 4 billion USD in mid-November 2021.

Olympus Dow is a reserve cryptocurrency based on the OHM token, designed to preserve purchasing power and be highly liquid.

The Olympus Protocol is community-managed with decisions made through voting by OHM token holders.

The value of the OHM token is backed by the Olympus Treasury, which primarily consists of DAI and other cryptocurrencies.

The Treasury contract requires approval from at least four of eight signers for any transaction.

If the value of the treasury reserve assets per OHM token exceeds one, the protocol automatically mints additional OHM tokens.

Olympus Dow offers a high APY of 468% for staking OHM tokens, significantly lower than the 7000% APY in November 2021.

The high APY led to many forks of the Olympus Dow protocol, each offering higher returns.

Olympus Dow introduced a bond protocol allowing users to deposit cryptocurrencies for discounted OHM tokens.

Bonders can also deposit LP tokens for discounted OHM tokens, contributing to the treasury's revenue stream.

Olympus Dow owns its liquidity, generating revenue from collected fees for the treasury.

In late 2021, Olympus Dow upgraded to Olympus v2, introducing on-chain governance and auto-staking for bonds.

Some smart contracts related to Olympus v2 are still undergoing audits according to the official site.

Despite the innovative concept, Olympus Dow is considered an experimental protocol with economic game theory concepts.

There have been lawsuit claims against co-founders of Olympus DAO, raising questions about the team's legitimacy.

The project is still in its early stages, and its success or failure is yet to be determined.

Olympus Dow can be seen as an economic experiment that may lead to the development of better protocols in the future.

Transcripts

olympus dow was founded by a

pseudo-anonymous guy called zeus with

the purpose of creating a decentralized

reserve currency

the project had gained so much attention

that in somewhere around the middle of

november 2021 it hit a total market cap

of more than 4 billion us dollars

so today we're going to take a look at

what olympus dow is and how it works

if you're new here this video is made by

alex and voiced by me joelle and on eat

the block we'll help you transition into

web3

[Music]

before we begin i'd like to remind you

that the sole purpose of this video is

to provide educational information and

shouldn't be treated as financial advice

so what is olympus dow it's a reserve

cryptocurrency based on the om token and

it's designed to preserve purchasing

power to be highly liquid and it's

backed by reserve assets the olympus

protocol is managed by the community of

home holders and all decisions regarding

the protocol are made through voting the

value of om token is backed by the

olympus treasury which mainly consists

of dai and other cryptocurrencies

the treasury contract is managed by

eight signers and requires at least four

signers to approve any transaction

when the value of the treasury reserve

assets divided by the total supply of

ohm tokens exceeds one die the olympus

protocol will automatically mint

additional ohm tokens and distribute

them as staking rewards currently

olympus dow offers an insane apy of 468

percent to anyone who stakes their own

tokens however this is far less than

what it's offering around november 2021

where the apy were around seven thousand

percent due to the high apy that were

being offered many began to fork olympus

dow defy protocol with each new protocol

offering higher apy than the previous

protocol the olympus dow also has a bond

protocol called olympus bonds bonders

can deposit specific cryptocurrencies

into the olympus dow treasury in

exchange for discounted ohm token in a

few days time

a substantial amount of the deposited

cryptocurrencies are then automatically

lent to protocols like ave to earn yield

for the treasury bonders can also

deposit lp tokens for discounted ohm

tokens olympus dow owns its own

liquidity which in return is

establishing a revenue stream from

collected fees for the treasury around

the end of the year 2021 olympus dow

upgraded their protocol and called it

olympus v2 it introduced new features

such as on-chain governance and auto

staking for bonds although all the

olympus v2 related contracts are live

according to the latest update from

their official site some of the smart

contracts are still being audited

so is olympus dow legit while the idea

of having a d5 protocol which is backed

by reserve assets is genuinely good

olympus dow remains an experimental

protocol built around the economic

concepts of game theory there's also

been lawsuit claims against co-founders

of the olympus dao an early funder might

have been cheated out of nearly 4

million in ohms

the allegation does question the

legitimacy of the team behind the

protocol

nonetheless it's still too early to

decide whether olympus dow is a failure

or a revolutionary protocol

however the project can be treated as an

amazing economic experiment that can be

used to build better protocols in the

future if you'd like to learn more about

dao feel free to check out the dows in

two minutes video made by julian i'll

see you again next time bye