OHM

Overview of OHM

OHM stands for Olympus (OHM), a decentralized finance (DeFi) protocol launched in 2021. It's known for its unique features like a rebasing mechanism that automatically distributes OHM tokens to holders, creating a scarcity effect. OHM primarily functions as a governance token within the Olympus ecosystem, allowing holders to vote on protocol updates. Currently, OHM is supported by several major exchanges and can be stored in various crypto wallets. It doesn't directly fit any specific DeFi category like NFT, fan tokens, or play-to-earn games, but rather focuses on protocol governance and tokenomics experimentation.

To obtain more information, you can visit their website: https://www.olympusdao.finance/ and try to log in or register to use more services.

Pros and Cons

Pros:

1. Decentralized Autonomous Organization structure: This structure empowers OHM users with the ability to directly influence the direction and rules of the platform. It promotes transparency and gives control to the users, moving away from the central authority model which is typical of traditional financial systems.

2. Operates on an established network (Ethereum): OHM operates on the Ethereum blockchain, one of the largest and most widely used blockchains. This provides OHM with a solid foundation, taking advantage of Ethereum's trusted and secure protocols.

3. Supported by various exchanges and wallets: Having support from various exchanges and wallets enhances the accessibility and usability of the OHM token. Users can conveniently buy, sell, exchange and store their OHM tokens using these platforms.

4. Managed by well-known founders: The credibility and reputation of the founders often contribute substantially to users' trust in a cryptocurrency. With J Zeus and Delphi Digital behind OHM, it offers an added layer of confidence for potential users and investors.

Cons:

1. Relatively new and untested system: As OHM was founded in 2021, it does not have a long history of performance to rely on. Consequently, potential investors may perceive this as more risky compared to more established cryptocurrencies.

2. Dependent on Ethereum's scalable solutions: OHM's performance and success are somewhat dependent on Ethereum's ability to scale and manage network congestion. Any issues faced by Ethereum could negatively impact the operation of OHM.

3. Not globally recognized or universally accepted: Despite its potential, OHM is still not recognized or accepted universally. This limits its usage and thus its potential growth.

4. Fluctuating market and asset value: Like many cryptocurrencies, OHM's value can be very volatile. This poses a risk for investors who might see significant fluctuations in the value of their holdings. This level of volatility could deter more risk-averse investors.

What Makes OHM Unique？

Olympus DAO (OHM) offers an innovative take on the decentralized autonomous organization (DAO) model, serving as its key differentiator from many other cryptocurrencies. Its primary goal is to generate a self-sustaining and float-independent currency. This is done by backing each OHM token with a basket of assets denominated in DAI (a stablecoin), which provides a floor price to OHM, separating it from the usual dependency on other cryptocurrencies or fiat.

The biggest novelty Olympus DAO brings is the mechanism called “bonding”. In this model, users can buy OHM tokens at a discount by bonding their liquidity provider tokens or DAI directly on the Olympus DAO platform. In return, users agree to hold the bonded assets for a set vesting period. This bonding feature encourages long-term token holding, which may reduce price volatility and support token stability.

Moreover, OHM operates on a rebase mechanism that adjusts the supply of OHM tokens based on price. This design aims to maintain price stability by contracting or expanding the supply of tokens in reaction to market dynamics.These innovations are aimed at creating a unique economic and organizational structure within the crypto world.

How Does OHM Work？

Olympus DAO (OHM) operates on a decentralized autonomous organization (DAO) model aimed at creating a self-sustaining and float-independent currency. OHM tokens are minted and backed by a basket of assets denominated in DAI, contributing to a treasury managed by the Olympus DAO. This treasury backs the value of OHM tokens, separating their value from direct correlation with other cryptocurrencies or fiat, thus achieving float-independence.

The DAO introduces “bonding,” allowing users to buy OHM tokens at a discounted price by bonding their liquidity provider (LP) tokens or DAI directly. Bonded assets have a set vesting period, discouraging short-term trading and supporting long-term holding.

OHM employs a rebase mechanism to adjust its token supply based on its current price. If the price per OHM is above the targeted price, the supply increases, distributing new tokens to holders. Conversely, if the price falls below the target, the supply contracts, stabilizing the price over time and reducing volatility.

Market & Price

Olympus is a decentralized finance (DeFi) protocol that utilizes a unique bonding mechanism to maintain the price of its native token, OHM. Unlike traditional airdrops, where tokens are freely distributed, Olympus requires users to purchase OHM at a discounted price through a bonding process. This helps to create buy pressure for the token and increase its treasury value.

Olympus' treasury currently holds $188,950,343, and the liquid backing per OHM is $11.38. This suggests that the protocol has a significant amount of assets backing its token, which can help to instill confidence in investors and maintain the price of OHM.

Exchanges to Buy OHM

Here is a list of some of the exchanges where you can buy Olympus DAO (OHM) tokens:

1. SushiSwap: SushiSwap is an automated market-making (AMM) decentralized exchange (DEX) currently on the Ethereum network. OHM can be traded directly with Ether (ETH) on SushiSwap.

See this link for details on how to buy OHM: https://www.finder.com/cryptocurrency/coins/how-to-buy-olympus

• Set up a crypto wallet: You'll need a crypto wallet compatible with Ethereum (ETH) to store your OHM tokens. Research and choose a reputable wallet that suits your needs.

• Fund your wallet with ETH: You'll need ETH to purchase OHM. You can buy ETH on a cryptocurrency exchange and transfer it to your wallet.

• Connect your wallet to a decentralized exchange (DEX): DEXs allow you to trade cryptocurrencies directly, peer-to-peer, without the need for an intermediary. Find a DEX that supports OHM trading and connect your wallet to it.

• Swap ETH for OHM: Once connected, locate the OHM trading pair and initiate a swap. Specify the amount of ETH you want to spend and follow the DEX's instructions to complete the transaction.



2. Uniswap: Another Ethereum-based exchange is Uniswap, where OHM can be exchanged with Ether (ETH).

3. Gate.io: This crypto exchange platform accepts a variety of trading pairs. You can trade OHM with USDT (Tether, a stablecoin) on Gate.io.

4. Coinbase: One of the largest and most popular exchanges, Coinbase has recently added support for OHM. It offers OHM trading pairs with USD and EUR.

5. Binance: While not directly offering OHM, Binance offers a vast array of cryptocurrencies that can be first purchased and then swapped for OHM on another platform, such as Ethereum (ETH), Binance USD (BUSD), etc.

6. Kraken: Like Binance, Kraken doesn't list OHM directly but offers other popular cryptocurrencies like Bitcoin (BTC) and Ether (ETH) that can be swapped for OHM elsewhere.

7. Huobi Global: It offers a large number of cryptocurrencies for trading. Although OHM isn't directly listed, you can buy assets like ETH and then use it to acquire OHM on a supporting exchange.

8. eToro: Here also, OHM isn't listed directly, but it offers cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH), which can be used to buy OHM on other exchanges.

9. OKEx: This exchange does not directly list OHM, but you can buy popular tokens like USDT and ETH, which can be swapped for OHM on other platforms.

10. Bitfinex: Bitfinex also doesn't list OHM directly but offers several cryptocurrencies that can be utilized to acquire OHM indirectly by swapping on a different platform.



How to Store OHM？

OHM tokens, as an ERC-20 token built on the Ethereum blockchain, can be stored in any wallet that supports ERC-20 tokens. Here are a few types of wallets that you can use:

1. Software Wallets: These are applications that can be installed on your device. They are a secure and convenient way of storing OHM tokens. Examples include MetaMask, Trust Wallet and MyEtherWallet.

2. Web Wallets: These are online platforms that provide control of your tokens via a web interface. MetaMask also fits into this category, as it has a web extension for browsers.

3. Hardware Wallets: Known as cold storage, these wallets are physical devices designed to secure cryptocurrencies offline. Ledger and Trezor are popular choices that support OHM tokens. These wallets are often considered the most secure option for storing cryptos.

4. Mobile Wallets: These are smartphone apps that store your private keys on your phone. Some examples include Trust Wallet and Coinbase Wallet.

5. Browser Extensions: These are plugins added to your web browser, such as MetaMask for Chrome, Firefox and Brave.

6. Decentralized Wallets: These wallets are built into decentralized finance (DeFi) applications, for example, WalletConnect.

Is It Safe？

OHM boasts several key features that contribute to its security:

Reliable Liquidity: Olympus Protocol Owned Liquidity (POL) ensures that OHM maintains liquidity even during turbulent market conditions. This means that OHM can be bought, sold, or borrowed against when needed, providing users with reliable access to their funds.

Accessible Backing: Cooler Loans allows users to take loans against the liquid reserves backing OHM. This feature provides users with financial flexibility by allowing them to hold OHM while still accessing liquidity through loans.

Predictable Monetary Policy: Olympus implements Range Bound Stability (RBS) as part of its automated monetary policy. This mechanism helps navigate volatile markets by providing predictability and transparency in monetary policy. This predictability allows investors to make informed decisions confidently.

Governed On-Chain: On-chain governance is a fundamental aspect of Olympus' operation. This system allows OHM holders to directly participate in decision-making processes such as protocol upgrades, collateral management, and monetary policy adjustments. This democratic approach fosters transparency and decentralization, making OHM a truly smart and secure investment option.



How to Earn OHM Coins？

OHM tokens are particularly fitting for individuals who have an understanding of decentralized finance (DeFi) concepts, are familiar with the mechanics of decentralized autonomous organizations (DAOs), and are comfortable with the inherent risks associated with cryptocurrency investments.

Since OHM operates as a DAO, those who have a strong interest in participatory governance models and management by consensus versus central authority might find it attractive. Moreover, the bonding mechanism it utilizes is innovative, and could appeal to long-term investors who are comfortable locking their assets in exchange for discounted tokens.

Conclusion

Olympus is pioneering a shift in the DeFi landscape with its decentralized reserve currency, OHM. With a strong community backing, significant treasury balance, and innovative features like bonding, Olympus aims to establish OHM as a dominant force in the decentralized finance world. The emphasis on community ownership, decentralization, and resistance to censorship further underscores its commitment to creating a resilient and widely accepted reserve currency for the future of Web3.

FAQs

Q: What is the significance of the Range Bound Stability (“RBS”) system for Olympus？

A: RBS is Olympus flagship system for its autonomous monetary policy.

Q: What are the primary objectives of reserve currencies？

A: Reserve currencies aim for deep liquidity, serve as a unit of account, and preserve purchasing power with low volatility.

Q: How does Olympus ensure the stability and growth of OHM？

A: Olympus DAO's treasury management, on-chain governance structures, and prudent use of its assets strengthen OHM's stability and promote the growth of the Olympus network economy.

Q: What role does the Olympus Treasury play in the protocol？

A: The Olympus Treasury supports market operations and conducts autonomous and dynamic monetary policy.

Q: How does OHM serve the market gap between fiat stablecoins and volatile crypto assets？

A: OHM offers relative stability and scalability, underpinned by the protocols Range Bound Stability (“RBS”) system.

Risk Warning

Investing in cryptocurrencies requires an understanding of potential risks, including unstable prices, security threats, and regulatory shifts. Thorough research and professional guidance are advised for any such investment activities, recognizing these mentioned risks are just part of a wider risk environment.