Introduction to OHM, the Native Cryptocurrency

OHM is the native token of the Olympus DAO protocol, designed to function as a treasury-backed asset rather than a traditional stablecoin. Unlike fiat-pegged stablecoins, OHM is supported by a basket of assets held in the Olympus treasury, including stablecoins like DAI and various cryptocurrencies. This backing provides intrinsic value and stability to OHM, which is regulated through the Range Bound Stability (RBS) system. The RBS system programmatically adjusts the supply of OHM to maintain its price within a specific range, ensuring it remains a stable, yet non-pegged, cryptocurrency.

OHM serves multiple purposes within the Olympus ecosystem. It facilitates bonding, where users exchange assets such as LP tokens or stablecoins for discounted OHM. This process allows the protocol to accumulate valuable assets in its treasury, ensuring liquidity and financial stability. The vesting period for bonded OHM is typically five days, which helps to prevent immediate market dumping and stabilize the token’s price. This mechanism is important for the protocol’s liquidity management and economic health.

Role and Utility of OHM within Olympus Pro

In the bonding process, users can acquire OHM at a discounted rate by providing assets to the protocol. This helps Olympus Pro build its treasury with diverse assets, ensuring long-term liquidity and financial health. The vesting period for these bonds helps prevent immediate market impact by gradually releasing the OHM tokens to users.

Users who stake OHM receive sOHM, which represents their staked amount and accumulates rebase rewards over time. These rewards are funded by the protocol’s bonding activities and are designed to encourage long-term holding by providing consistent returns. Staking reduces the circulating supply of OHM, contributing to price stability and providing a passive income stream for users. Staking supports long-term participation and investment in the protocol.

In terms of governance, OHM holders can participate in the governance of Olympus DAO, making decisions on protocol upgrades, policy changes, and treasury management. This decentralized governance model is facilitated through gOHM, a wrapped version of OHM used specifically for voting purposes. This ensures that the community has a direct role in shaping the protocol’s future and maintains transparency and decentralization within the ecosystem.

Tokenomics: Circulating Supply, Total Supply, and Market Cap

The circulating supply of OHM is managed through the protocol’s bonding and staking mechanisms. When users bond assets, the protocol mints new OHM tokens, increasing the supply. Conversely, staking reduces the circulating supply as staked OHM is locked within the protocol.

The total supply of OHM is flexible, allowing the protocol to mint new tokens as necessary to maintain economic balance and respond to market conditions. This flexibility helps prevent inflationary pressures and ensures the stability of OHM. The market cap of OHM reflects its price and circulating supply, indicating the value of the Olympus ecosystem. The treasury backing ensures that OHM retains intrinsic value, providing a reliable asset for users and maintaining confidence in the token’s stability.

Highlights

• Treasury-Backed Asset: OHM is supported by a basket of assets in the Olympus treasury, including stablecoins like DAI and other cryptocurrencies, providing intrinsic value and stability.
• Role in Bonding: Users exchange assets for discounted OHM through bonding, helping the protocol accumulate valuable assets in its treasury and ensuring long-term liquidity.
• Staking Mechanism: Staking OHM allows users to earn rebase rewards, reducing the circulating supply and providing a passive income stream, contributing to the protocol’s stability.
• Governance Utility: OHM holders participate in decentralized governance, making decisions on protocol upgrades, policy changes, and treasury management through gOHM, a wrapped version used for voting.
• Flexible Tokenomics: The supply of OHM is managed dynamically through bonding and staking, with a flexible total supply to maintain economic balance and prevent inflationary pressures.