Guide to Olympus DAO $OHM

1. INTRODUCTION

Through $OHM, Olympus DAO is seeking to create a new yield bearing money GOD which will be used as a store of value and unit of account with a floor price of 1 DAI.

2. MECHANICS

Each minted $OHM is backed by 1 DAI — only the protocol itself can use that DAI.

3. VALUE ACCURAL

The main mechanism for value accrual of the protocol comes from using most of the underlying DAI to generate yield. For example by depositing it in a yield aggregators vaults (this is similar to the way the FRAX protocol deals with and accrues value from its deposited USD see https://app.frax.finance/).

4. I’M A NEWB HOW SHOULD I APE IN?

The easiest way for less technical people to participate in the protocol is to simply buy $OHM stake it — and that’s it.

5. I’M AFRAID WHAT ARE THE RISKS?

As far as DEFI goes the biggest risk is that $OHM and DAI lose their peg because of a bug in the smart contract or oracle or that the yield aggregator loses the underlying DAI. While these are risks we have seen FRAX faithfully maintain a not dissimilar peg mechanism for the last several months successfully and yield aggregators such as YEARN are some of the most trusted names in DEFI.

6. WHEN DOES IT LAUNCH?

You will be able to purchase on 14 March 2021 through the Sushiswap DAI:OHM pool.

7. FURTHER READING

There are a number of other mechanisms proposed for the protocol and further reading can be found at https://ohmzeus.gitbook.io/olympus/

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