After delegating your OHM tokens, there are a few things to keep in mind:

• Note that your staking rewards are auto-compounded every 8 hours (3 times a day), which can result in a even higher staking return without manually compounding the rewards.
• As a participant in the Olympus Network, you will have the opportunity to vote on Governance Proposals as long as you are an OHM token holder. While your contribution and vote are highly valuable to the ecosystem, it won’t affect your staking rewards.

Native staking rewards for OHM are composed of:

Rebasing Rewards: OHM stakers receive the majority of newly minted OHM every 8 hours, which operates through an inflationary mechanism referred to as “rebasing.” OHM is minted when bond purchasers exchange other tokens, such as DAI, for 1 OHM at a below market price. The Olympus protocol uses the received DAI tokens to mint OHM at a 1:1 ratio and distributes the surplus newly minted OHM tokens to Protocol-owned Liquidity (POL) and stakers, after paying the purchaser 1 OHM.

It’s important to keep in mind that the total annual rewards are divided among all active stakers. As the number of staked tokens increases, the reward rate decreases. Furthermore, there are governance proposals that could adjust some of the on-chain parameters, which could also change the APR if they are approved.

You’re welcome to use our Staking Calculator to get a better understanding of how these factors can impact your rewards.

We strive to make staking as safe and transparent as possible, however, it’s important to consider factors that may influence whether a particular staking option is appropriate for you.

• Unbonding risk: There is no unbonding period involved when staking OHM.
• Gas fees: It’s important to consider that both staking and unstaking transactions will incur gas fees, particularly since OHM is an ERC-20 token on the Ethereum network. Gas fees can increase significantly during network congestion.
• Protocol security risks: There is an inherent risk that the protocol could contain unknown bugs, this risk applies not only to staking but also the investment in OHM tokens in general.

This list is not exhaustive and other risks may apply.

OlympusDAO is powered by the OHM, the native token, and it is used to perform various essential functions within the protocol.

Token Utilities

• Staking: OHM holders can choose to stake OHM for gOHM, which receives the Base Staking Rate (“BSR”). The BSR now serves as a demand driver for OHM as well as a reference rate against which productive economic activity (lending, liquidity provision, etc.) is measured. Furthermore, it acts as a foundation for OHM bonds to develop a yield curve across different expiries. The BSR is set by governance.
• Governance: Any community member can propose an idea for discussion on the forum before it is submitted for a governance vote through snapshot. Proposals usually have a 2-day voting window, during which holders of the OHM token can vote for their preferred option, with a higher amount of OHM providing more voting power.
• Other utilities: OHM is designed to be highly liquid and can be easily exchanged for other assets, products and services. Further, the goal is to utilize OHM broadly as a unit of account and provide token holders with a stable, low-volatility asset that grows at a steady rate over the medium-to-long-term.

OHM is a rebase token with a fluctuating supply that can grow (by minting more tokens) or shrink (by destroying/burning tokens), leading to changes in the circulating supply. The number of tokens in circulation can be increased through minting, or reduced through burning. 

Each OHM is backed by $1 worth of assets (e.g. FRAX, DAI) in the treasury, not pegged to it. Because the treasury backs every OHM with at least $1, the protocol would buy back and burn OHM when it trades below $1. This has the effect of pushing OHM price back up to $1. On the other hand, OHM could always trade above $1 because there is no upper limit imposed by the protocol.

The supply of OHM is regulated by the protocol. When 1 OHM < $1, the protocol will buy back and destroy OHM from the market to decrease its supply and increase its value. As a result, the price of OHM will always be maintained at above $1, meaning that $1 is the floor price or intrinsic value of OHM.

Initial Token Distribution Breakdown 

The total initial supply was 68,260 OHM tokens and the distribution is as follow:

• Initial Discord Offering: 50,000 OHM was allocated to members who joined the Discord server before March 3rd at $4/OHM. To ensure fairness, each member received a pro rata share based on the number of participants. This resulted in a 141 OHM allocation ($564) per person. Unbought OHM from individuals was used to increase subsequent buyers’ allocations.
• An additional 18,260 OHM tokens were offered in an initial DEX offering on SushiSwap.