Olympus is a decentralized reserve currency protocol that is based on the OHM token. It was launched in May 2021 with a goal to build community-owned DeFi infrastructure and bring more transparency and stability in the financial space. Olympus tokens are backed by a basket of assets in the Olympus treasury. Since its launch, the OHM token has collected a humongous treasury balance and locked huge value in its staking pool.
According to CoinGecko, a passionate and huge user base propelled the current market capitalization of the OHM token to $6 billion. So many entrepreneurs in the DeFi space have decided to invest their money in the Olympus DAO development.
If you’re also planning for Olympus DAO development, then you have come to the right place. This blog will shed light on the working of Olympus DAO, its benefits, and what makes it unique.
What Makes Olympus Token Unique?
Dollar-pegged stablecoins have become an essential part of the crypto trading process. Though stablecoins have a stable valuation like fiat currency, many traders prefer to buy them to earn more in the crypto trading process. However, the dollar is controlled by the American government. Therefore, stablecoins can depreciate if the dollar depreciates. This is when Olympus DAO comes into the picture.
Olympus DAO aims to overcome this challenge by creating a free-floating reserve currency named ‘OHM’. By focusing on the supply growth instead of price appreciation, OHM holds its purchasing power irrespective of market fluctuations.
How does Olympus DAO Work?
Olympus DAO comprises protocol-owned liquidity (POL), protocol-managed treasury (PMT), staking mechanism, and bonding mechanism to control supply expansion. Any kind of profit generated through bond sales goes to the treasury which automatically distributes the OHM token to the stakeholders.
Olympus DAO encourages OHM holders to stake their tokens by promising a high rate of return on their staking pool. It also encourages more investors to either perform more bondings or buy OHM from the market. The process not only keeps the price of OHM tokens high but also maintains the liquidity of the pool.
The below-listed are some key pointers depicting the detailed working of the Olympus token:
Step 1: Investors buy OHM tokens and stake them in the pool to receive compound interest.
Step 2: In order to receive more OHM tokens, investors either buy more tokens from the market or bond their other assets to the protocol to receive more OHM at a discount.
Step 3: LP (Liquidity Provider) tokens bonded to the protocol are locked permanently. The protocol earns trading fees with these LP tokens.
Step 4: With tokens available in the treasury, the protocol finds ways to generate returns in order to pay for the compound interest promised to investors.
The high rate of return for staking OHM tokens is what encourages investors to buy OHM tokens from the open market and perform more bondings. Though OHM was designed to be a free-float currency, its price will need to be relatively stable if it intends to fulfill its role. Just like the gold standard, OHM creates a free-floating value to which its investors can always rely on.
The Potential of DAO
DAOs have become a buzzword for people of every age group in the present scenario. Olympus DAO development is a hot trend these days. Considering the statistics mentioned at the start of the blog post, it won’t be wrong saying that the demand for Olympus DAO will not fade anytime soon. So it is the right time for enterprises to invest in Olympus DAO development. Besides, if you’re willing to know more about the DAO development process in detail, then the assistance could be sought from experts at a top Olympus DAO development company like Antier Solutions.
Why Should you get DAO Development Services from Antier Solutions?
Following are some key reasons why businesses must hire Antier Solutions to fulfill their DAO development needs:
Skilled Team of Blockchain Experts
Antier Solutions boasts a skilled team of Blockchain experts that works dedicatedly to provide its clients with the best-in-class DAO development services. From Ethereum to Tezos, the team has rich expertise in working on multiple Blockchain platforms.
Being a trustworthy DAO development company, Antier Solutions strives to build long-term relationships with its clients. We sign a confidentiality agreement with our clients to prevent the release of any information and ideas related to the project.
Agile Development Process
We implement an agile development approach to provide on-time delivery of projects. Agility permeates our delivery processes, team composition, and an individual’s skills resulting in cost-effective operations and enhanced customer orientation.
Post-Launch Customer Support
After the official release of the DAO platform, there may arise a situation where you have to fix some bugs and errors. To provide our clients with the best experience, Antier solutions also provides post-launch services.