Olympus

FAQ's

What is Olympus (OHM)?

Olympus is a decentralized reserve currency protocol based on the OHM token. Each OHM token is backed by a basket of assets (e.g. DAI, FRAX) in the Olympus treasury, giving it an intrinsic value that it cannot fall below. Olympus also introduces unique economic and game-theoretic dynamics into the market through staking and bonding.

Bonds & LP fees
Bond sales and LP Fees increase Treasury Revenue and lock in liquidity and help control OHM supply

Olympus Treasury
Treasury inflow is used to increase Treasury Balance and back outstanding OHM tokens and regulate staking APY

OHM Token
Compounds yields automatically through a treasury backed currency with intrinsic value

How to stake OHM?

There are two ways to earn from the OlumpusDAO protocol, you can either Stake OHM or participate in bonding by providing crypo assets in exchange for discounted OHM.

To Stake OHM and start earning a “Sustainable Staking Reward” of over 7,000% at the time of writing, first go to their staking app.

Make sure to have some OHM and ETH to cover gas fees in your Ethereum wallet such as Metamask.

Connect to the staking contract, approve and confirm how much OHM you want to stake. Monitor your staking rewards on the dashboard and unstake when ready.

You can connect your ledger hardware wallet to metamask and stake OHM.

How much can I earn staking OHM?

Stake OHM – yields are compounded automatically.

Staking is the primary value accrual strategy of Olympus. Stakers stake their OHM on the Olympus website to earn rebase rewards. The rebase rewards come from the proceed from bond sales, and can vary based on the number of OHM staked in the protocol and the reward rate set by monetary policy.

Staking is a passive, long-term strategy. The increase in your stake of OHM translates into a constantly falling cost basis converging on zero. This means even if the market price of OHM drops below your initial purchase price, given a long enough staking period, the increase in your staked OHM balance should eventually outpace the fall in price.

How much can I earn bonding on Olympus?

Bonding on Olympus – sell crypto assets to the treasury and received OHM at a discounted price after a certain period of time.

Bonding is the secondary value accrual strategy of Olympus. Bonds are a cross between a fixed income product, a futures contract, and an option. The protocol quotes the bonder with terms for a trade at a future date. These terms include a predefined amount of OHM the bonder will receive and the time when vesting is complete. The bond becomes redeemable as it vests. I.e. in a 5-day term, after 2 days into the term 40% of the rewards can be claimed.

Bonding is an active, short-term strategy. The price discovery mechanism of the secondary bond market renders bond discounts more or less unpredictable. Therefore bonding is considered a more active investment strategy that has to be monitored constantly in order to be more profitable as compared to staking.

Any risks to staking OHM?

There are smart contract risks associated with Olympus DAO and users should be aware that DAOs have a long risk history.

The first audit by PeckShield was completed on the 9th of April 2021. It covered all deployed smart contracts at the time.

The second audit by Omniscia was completed on the 28th of May 2021. It covered treasury, distributor, staking, and bonding smart contracts at the time.