About

OlympusDAO is a decentralized financial protocol aimed at creating a stable and community-driven currency. It focuses on economic and governance mechanisms to achieve sustainability and reduce volatility in the DeFi space.

History

Over the last couple of years, stablecoins have come under a lot of scrutiny and faced increasingly strict regulatory issues. With cryptocurrencies becoming more mainstream, this trend is unlikely to reverse. On top of this, the fact that the most popular stablecoins used today are centralized seems antithetical to crypto's value proposition of decentralization. The recent wave of algorithmic stablecoins aim to solve most of these issues using algorithms to back their stablecoins instead of reserves. Without reserves, these projects don't need to be periodically audited and can be decentralized. However, these coins still have one big issue: they're still pegged to a fiat currency which is controlled by a central government. Even if algorithmic stablecoins are able to maintain a perfect peg to their fiat currencies, which has already proved difficult to do, they are still at the hands of various governments who control the fiat currency.

The relatively new category of "non pegged stablecoins" is the market's answer to this issue. What if you could have a stablecoin that was less volatile than other cryptocurrencies, and therefore more suitable for everyday transactions, but had no reliance on any fiat currencies? Olympus aims to achieve this with their OHM token. Through a treasury of assets as well as minting and burning, Olympus' long term goal is to become a currency that is stable enough to be used in daily transactions with the reasonable expectation that prices will remain the same over time while not relying on a traditional peg. The project was originally proposed at the beginning of February and held an Initial Discord Offering to community members in the middle of March. The project officially launched shortly afterwards and has seen tremendous growth in the first couple of months of its existence. Less than a month in, the team successfully proposed and implemented a core change to the protocol, introducing DAI bonds to replace the old sales contract, in order to grow the treasury faster and take advantage of the large premium of OHM price at the time.