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Olympus is a non-pegged stable coin DAO that follows other underlying assets to drive its stability. In order to do that, the protocol mints OHM tokens and releases them into the ecosystem. When the token supply increases, the Olympus protocol burns the OHM tokens, and when the supply decreases, the protocol mints more OHM tokens to stabilize its price. “In their own words, Olympus is a decentralized reserve currency protocol based on the OHM token. Each OHM token is backed by a basket of assets in the Olympus treasury. The goal of the project is to build a policy-controlled currency system, in which the behaviour of the OHM token is controlled at a high level by the OlympusDAO.

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• When the token supply increases, the Olympus protocol burns the OHM tokens, and when the supply decreases, the protocol mints more OHM tokens to stabilize its price.
• The Nano X is for more advanced users and gives users more ability when trading crypto.
• We’ve covered the most important information about Olympus DAO and its native token OHM in this article.
• Through decentralized exchanges like Sushiswap, you can buy OHM tokens.
• On the other hand, they could skyrocket and hit new all-time highs tomorrow.

Depending on your requirements, you can then carry on with the other activities or options offered by Olympus — which includes staking your OHM. OHM is a free-floating money that is subject to the Range Bound Stability (RBS) system. It programmatically and transparently encourages a price range for market participants. To further get Olympus DAO explained, we must look at its liquidity guarantees. Thanks to its bond mechanism, Olympus DAO owns most of its liquidity. This feature means that the protocol does not have to incentivize liquidity by dishing out high rewards to mercenary yield farmers.

Is OlympusDAO (OHM) a Good Investment?

V1 doesn’t make the sOHM holders eligible for rebasing awards. However, with the V2 tokens, all the rewards which the V1 token holders have been eligible for will be credited back to them. Along with this, since V1 is more expensive than V2, when you migrate to the V2 ecosystem, you will get more V2 tokens in exchange for  V1’s. Olympus V1 stood as the first origin of the OHM token that facilitated bonding and taking a basket of accepted cryptocurrencies as collaterals to mint OHM at a discounted rate. Whereas, in V2, users get more exposure to on-chain governance through the introduction of gOHM tokens.

If you would like to unstake all your staked OHMs, click the “Max” icon and the input field will automatically enter all your available balances. Once it’s been successfully approved, click “Unstake” and sign the transaction. Returns are generated in two different ways and are split among all users who stake OHM.

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They put capital upfront to receive a fixed return at a set future date. A bonder’s profit will depend on OHM’s price at the bond’s maturity. Thus, bonding is the process that grows treasury reserves.

But the Master DeFi in 2022 course is a great place to start. Therefore projects related to the Reserve Pillar will focus on maintaining OHM’s purchasing power. We’ve been talking about DAOs in this article, but who creates them?

How To Buy OlympusDAO OHM on Avalanche: Step By Step Guide

Learn more by reading our  Ukraine & cryptocurrency article. The goal for Olympus DAO is to build a currency system where the DAO controls the OHM token’s behavior at a high level. The OHM token provides free-floating value that its users can depend on due to the fractional treasury reserves from which OHM draws its value. Further, their lack of volatility is like a rock in a stormy sea of other raging cryptocurrencies.

An In-Depth Look at Olympus DAO Protocol and the Not-So-Stable Stablecoin OHM

Thus, as the collection of OHM grows, holders can redeem more pOHM. The team wants the pool to increase and for the price to go up. It’s no secret that the global financial system is broken. Furthermore, the 2008 financial crisis primarily motivated Satoshi Nakamoto to create Bitcoin. The invention of cryptocurrency was the warning shot across the bow that international finance needed a change. Just open an account, download a wallet, and make your purchase.

Brief History of OlympusDAO (OHM)

OHM is a governance token looking to create a stable asset that can be used as a form of payment. It also offers features that allow users to earn interest on their OHM position. As soon as your Olympus tokens are in the staking contract, you can start receiving rewards. Visit the OHM staking dashboard to view your current staking balance and rewards. Staking is a method of using a cryptocurrency to perform work and receive rewards.

How do I trade, convert or sell Olympus?

Risks are inevitably higher when using a new investment tool, and this is especially true for something as novel and ambitious as OHM. We’ve covered the most important information about Olympus DAO and its native token OHM in this article. We’ve thought about what staking OHM is and the speculating vs investing procedures involved in it, among other things. The product’s lack of historical data, which makes it difficult to predict future returns, is undoubtedly a con. As more people stake, the APY will inevitably decrease, keeping returns high but decreasing until the final coin is released.