The Ohmization of DeFi (3,3)

Is Olympus DAO a Ponzi scheme?

Olympus DAO is currently the most misunderstood DeFi project out there. Its OHM token promises to generate an extremely high APY of over 8,000% when staked. In addition, there is a cult-like following of “Ohmies” with “(3,3)” in their Twitter handles. This makes many question the legitimacy of the project.

OHM Memes

What is Olympus DAO?

Olympus DAO is building a decentralized financial reserve currency called OHM. In contrast to Tether and USDC, OHM tries to become the first decentralized stable-coin that should hold in theory the same purchasing power over a longer time period. This is certainly not the case for the USD as it loses its purchasing power over time because of inflation.

Protocol-owned Liquidity

The revolutionary thing about Olympus is the introduction of “protocol-owned liquidity”. It means that every OHM that is staked can earn compounding interest through its community-owned and protected treasury in the form of additional OHM.

How OlympusDAO works
OlympusDAO Game Theory

OHM is growing

Within seven months since its launch, OHM has accumulated close to $700 million in assets for its treasury and has eclipsed $4 billion in market cap. It’s also one of the few DeFi projects that owns 99% of its liquidity. In that same period, the Ohmies have built one of the strongest and liveliest communities in crypto governed by a DAO (decentralized autonomous organization).

OHMization of DeFi

They say imitation is the highest form of flattery. In crypto, this manifests as forks or copies of a project’s codebase. OHM’s success attracted many followers and its system acts as a template for many forks. Its intelligent system of sharing the protocols liquidity with the strong community and its DAO organization inspires many to launch their specific forks. But OHM system is battle-tested and has the strongest community. According to DeFi influencer mewnyfish, 30 forks of the OlympusDAO codebase have emerged. Two of the most prominent forks are:

  1. $KLIMA — a currency that is backed by digital carbon credits and build on Polygon.
  2. $TIME — an OHM fork based on the Avalanche.
A thread about forks by Zeus, Founder of Olympus DAO

OlympusPro

Recently, Olympus DAO launched OlympusPro a bond marketplace for protocol-owned liquidity. This service can be described as a bond-as-a-service (BaaS) business where other projects pay a fee for this service.

(3,3) Investors:

You cannot escape seeing the (3,3)-meme on Twitter. Recently many prominent investor like Kevin Rose (1.5M followers), Chris Sacca (1.6M), and Tim Ferriss (1.7M) used the “(3,3)”-meme in their tweets. Many of their followers must have seen this and asked what it means.

Famous people tweet the 3,3-meme.

How to buy OHM?

Currently OHM isn’t listed on any centralized crypto exchanges like Coinbase, Binance or Kraken. To buy OHM, you need to setup a Metamask and hold some ETH and swap your ETH to OHM on Uniswap or SushiSwap. There is an extremely helpful guide on Twitter by @takegreenpill. Just follow the guide to learn how to buy and stake OHM:

How to buy OHM?

Personal take

I’m an Ohmie. One of my favorite part is getting into a new space when society still rejects it and pushes back on the topic. The upside is being early before anyone sees the vision not when it’s obvious and mass adoption occurs. But there are still many risks. We are currently in a very strong crypto bull market and there is no certainty how long it will last.

  1. OHM prices go down.
  2. People unstake & sell their OHM
  3. Bond ROI increases
  4. Staking rewards increase because of less stakers
  5. People buy back more OHM through Bonds
  6. Price of OHM goes back up
Credit: https://flippening.olympusdao.finance/

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