Olympus DAO chases a new ATH after fresh bond offerings and partnerships

The rapidly evolving world of blockchain technology offers a wide range of approaches and tokenomic models aimed at solving the blockchain trilemma of creating a decentralized, stable and secure network.

One tokenomic model that has seen several variants over the past year is the 'rebase' model, which is designed in a way so that token balances can fluctuate over time depending on changes in the token price and the supply in circulation.

Olympus (OHM) is a rebase project that has caught the attention of many in the crypto space over the past six months — in large part thanks to the high yield offered to OHM stakers, which is currently above 7,000%.

What sets Olympus apart from other protocols in the market, including other rebase projects like Ampleforth (AMPL), is that rather than having its main token fluctuate around the stablecoin price of $1 USD, each OHM is an algorithmic reserve currency backed by a basket of assets, such as DAI or FRAX, that are held in the Olympus treasury and give OHM an intrinsic value below which it cannot fall.

Staking and bonding game theory
The main way Olympus users increase the value of their portfolios is through staking OHM on the protocol to earn rebase rewards.

Rebase rewards are paid for by the proceeds from bond sales on the network and can fluctuate depending on the number of bonds sold, the reward rate set by monetary policy and the number of OHM staked.

The long term strategy behind staking on the network involves locking OHM on the protocol long enough so that even if the market price of the token drops below the initial purchase price, the increase in the balance of staked OHM should eventually outpace the fall in price and could potentially lead to an increase in total value.

Bonding on Olympus is essentially a cross between a fixed income product, a futures contract and an option. Bonders are quoted with terms for a trade at a future date, which include a predefined amount of OHM that the bonder will receive once vesting is complete.

These bonding capabilities make it possible for the Olympus DAO to accumulate its own liquidity, referred to as POL, which is an important part of its overall design as more POL ensures that there is always locked exit liquidity in trading pools that helps to facilitate market operations and protect token holders.

Initially, the project launched via a $500 initial Discord offering (IDO) and within a month of listing, the price quickly rose to $1,487 before the market-wide crash in the second week of April pushed the price back to its listing price near $163. Even with the price scrapping a swing low, OHM stakers continued to stack coins over the following month.

Source :cointelegraph.com