OHM Olympus

Olympus Use Cases

Olympus is a decentralized financial (DeFi) system that supports OHM, a treasury-backed token on the Ethereum network. Here are some of its key use cases:

Staking

Olympus enables holders of OHM tokens to earn extra OHM through staking. The staking feature offers rebase rewards accrued from bond sales, and the reward rate is defined by the protocol’s monetary policy. This process attracts more users to stake their tokens, which helps increase the total supply of OHM while reducing market dilution.

Bonding

Olympus uses bonding to acquire protocol-owned liquidity (POL) and reserve assets. Bonding allows users to buy OHM tokens at a discounted rate by offering other cryptocurrencies, such as stablecoins, to the Olympus treasury. This mechanism helps grow the treasury and increase the ability to mint new OHMs while paying high yields to stakers.

Price Regulation

Olympus uses a unique algorithm to stabilize the price of OHM. If the price of OHM increases beyond what is backed by the assets in the treasury, the protocol mints and distributes new OHM to the market, increasing the circulating supply and reducing the value of the token. Conversely, if the price of OHM decreases below what is backed by the treasury, the protocol buys more OHM tokens from exchanges and burns them, reducing the circulating supply and causing an increase in the price of the token.

Governance

OHM serves as a governance token that allows holders to vote on proposals on Scattershot, giving them a say in the decision-making process of Olympus. This democratic approach fosters transparency and decentralization, solidifying OHM as a community-governed money.

Pros of Olympus

• Decentralized Stable Asset: Olympus aims to create a decentralized stable asset not backed by a single fiat currency or asset, but by a diversified basket of cryptocurrency assets. This approach seeks to provide stability and reduce dependency on centralized banks.
• Liquidity Provision: Olympus offers liquidity-as-a-service through its Pro platform, allowing other projects to acquire and manage their own liquidity, which helps in stabilizing token launches and providing more control over token futures.
• High APYs: The protocol offers high APYs (Annual Percentage Yields) by selling bonds at discounted prices, which incentivizes users to buy these bonds and contribute to the treasury's growth.
• Treasury Model: Olympus employs a unique treasury model that combines bonding, rebasing, and liquidity provision to create a resilient ecosystem. This model helps in maintaining the stability and value of the OHM token.
• Community-Driven: Olympus is a community-driven project with decisions made through voting on proposals in the DAO, preserving decentralization and democracy.

Cons of Olympus

• Complexity: The mechanics of Olympus are extremely complicated, which can make it difficult for new users to understand and participate.
• Ponzi Scheme Concerns: Some critics have accused Olympus of being a Ponzi scheme due to its high-yield staking system, which is perceived as unsustainable and potentially fraudulent.
• Anonymity of Management: The pseudo-anonymous nature of the Olympus DAO management, including the creator Zeus, has raised concerns about transparency and accountability.
• Market Volatility: The value of OHM can be volatile, and significant price drops could impact the sustainability of the protocol's high APYs.

Founders of Olympus

The founders of Olympus include a pseudo-anonymous team led by "Zeus." The real identity of Zeus has been subject to speculation and legal disputes. According to recent lawsuits, one of the co-founders is allegedly Timothy Gray Troxell, a 22-year-old from Weston.

Key Points:

• Pseudo-anonymous team: The team behind Olympus is not fully disclosed, with members using pseudonyms.
• Zeus: The primary founder known by the pseudonym "Zeus."
• Legal disputes: Lawsuits have been filed against one of the co-founders, revealing potential identities such as Timothy Gray Troxell.

Investors in Olympus

Olympus has received significant funding from various investors. Here are some key points about its funding:

• Total Funding: Olympus has raised a total of $60 million in its ICO (Initial Coin Offering) round.
• Key Partnerships: Olympus has partnerships with several notable DeFi projects, including Frax Finance, Rari Capital, and Abracadabra Money, with potential future collaborations with Aave and Alchemix.
• Investor Information: Specific details about individual investors are not publicly disclosed, but the project has garnered significant support from the DeFi community and various financial entities.

Halal Status of Cryptocurrencies

Olympus

• Halal Status: No
• Reason: Olympus involves staking and minting mechanisms that can be considered similar to interest-bearing activities, which are generally considered haram in Islamic finance. The staking process in Olympus rewards users with more tokens, which can be seen as a form of riba (interest), making it non-compliant with Islamic financial principles.