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.