Olympus v1 (OHM)

What is Olympus v1 (OHM)?

Olympus v1 (OHM) was an experimental decentralized reserve currency protocol based on the OHM token. It aimed to create a currency that was backed by a basket of assets, providing stability and intrinsic value. Olympus v1 was a fork of another protocol and was the first iteration of the OlympusDAO project.

The project’s core concept was to establish OHM as a crypto-native reserve currency. This means it wasn’t pegged to a fiat currency like the US dollar. Instead, it aimed to derive its value from its underlying asset reserves.

Olympus v1 has now been replaced by Olympus v2, which seeks to improve upon its predecessor by addressing some of the identified issues. The original project has ceased operations.

How Did Olympus v1 Work?

Olympus v1 operated through a combination of staking, bonding, and policy. Staking involved users locking their OHM tokens to receive more OHM tokens as rewards. This encouraged long-term holding and decreased circulating supply.

Bonding allowed users to sell certain assets (like DAI or ETH LP tokens) to the OlympusDAO treasury in exchange for discounted OHM tokens. These tokens were vested over a period of time. This process helped the DAO accumulate assets to back the value of OHM.

Policy was the mechanism by which the OlympusDAO controlled the monetary supply and the overall economic health of the protocol. The goal was to achieve price stability and growth. Protocol controlled value would also be achieved through this method.

Olympus v1 Key Features and Technology

Decentralized Reserve Currency

• OHM aimed to be a decentralized reserve currency not pegged to any fiat currency.
• Its value was intended to be backed by a basket of assets held in the OlympusDAO treasury.

Staking Rewards

• Users could stake their OHM tokens to earn more OHM as staking rewards.
• These rewards were designed to incentivize long-term holding and reduce circulating supply.

Bonding Mechanism

• Bonding allowed users to sell assets to the DAO treasury in exchange for discounted OHM.
• The acquired assets served to increase the backing of OHM.

Governance

• OlympusDAO was governed by OHM token holders.
• Token holders could vote on proposals related to the protocol’s parameters and policies.

What Was Olympus v1 Used For?

Olympus v1 primarily served as a vehicle for its holders to participate in the OlympusDAO ecosystem. Staking OHM allowed users to earn rewards and increase their holdings of the token. It also provided a means to participate in governance decisions.

Bonding allowed users to acquire OHM at a discount. By selling assets to the DAO, bonding participants were helping the protocol grow its treasury and solidify the backing for OHM. This would ideally contribute to the stability and overall health of the token and the OlympusDAO.

Ultimately, OHM was intended to be used as a decentralized reserve currency within the crypto space. This would give it utility in various DeFi applications and potentially as a medium of exchange.

How Was OHM Originally Bought?

OHM was originally available for purchase on decentralized exchanges (DEXs). These platforms allowed users to trade various cryptocurrencies, including OHM, without relying on centralized intermediaries. Popular DEXs like SushiSwap and Uniswap, offered liquidity pools where users could swap other tokens for OHM.

Acquiring OHM on a DEX involved connecting a compatible cryptocurrency wallet to the platform. Once connected, users could search for the OHM trading pair and execute a trade. It’s important to be aware of potential slippage and transaction fees associated with DEX trading.

To purchase on these DEXs, you would need another cryptocurrency such as Ethereum (ETH), and then swap ETH for OHM. You would then be able to use OHM in the OlympusDAO. Remember that Olympus v1 is no longer active.

How Was OHM Stored?

OHM, being an ERC-20 token, could be stored in any wallet that supports the Ethereum blockchain. This means there were a wide range of options available, catering to different user preferences and security needs. Hardware wallets, software wallets, and browser extension wallets were all viable options.

Hardware wallets, like Ledger or Trezor, provided the highest level of security. They store the private keys offline, making them less susceptible to online attacks. These were often favored by users holding large amounts of OHM.

Software wallets, such as MetaMask, Trust Wallet, or Coinbase Wallet, offered a more convenient option. These wallets are downloaded onto a computer or mobile device. It’s important to secure the device and back up the wallet’s seed phrase.

Future Outlook and Analysis for Olympus v1

Olympus v1 is no longer active, and the project has transitioned to Olympus v2. Any analysis of the original project is primarily of historical interest. It provides insights into the challenges and lessons learned in creating a decentralized reserve currency.

The experiences with Olympus v1 helped shape the development of Olympus v2. Some of the concepts pioneered by Olympus v1, such as staking and bonding, have been adopted by other DeFi projects. The challenges of maintaining stability and managing a decentralized treasury remain relevant in the DeFi space.

The future of any decentralized project depends heavily on its community and governance. It also depends on its ability to adapt to the ever-changing cryptocurrency landscape. Olympus v2 will have to adapt to continue moving forward.

References

• CoinGecko
• CoinDesk