First Month in Review
Do the difficult things while they are easy and do the great things while they are small. A journey of a thousand miles must begin with a single step. -Lao Tzu
It’s hard to believe its been (only) a month since Olympus officially launched. From the gold standard to the post-launch pump (and subsequent dump), the rebirth of Fiskantes as Papa Fisk, countless ZADs and 2PM dumps, and even a period of stability, its been a wild ride. Though we’re only getting started, it’s good to look back and review our progress so far.
Context
Olympus is an algorithmic currency protocol that uses asset backing as a supply constraint. We have to take in assets, either DAI or OHM-DAI LP, to mint new OHM. The initial OHM supply was distributed to members of the Olympus discord as alphaOHM on March 15th. The migration from alphaOHM to OHM began on March 23rd; we consider that our official launch.
Data
Some fun charts
Not financial advice, just data.
Liquidity
Liquidity started relatively small at $3m and ran up to $7m at the previous peak. Our initial collapse was led by a significant outflow from liquidity providers; large LPs pulling and selling generally goes poorly.
Liquidity bonds launched on April 1st and liquidity has been on a strong uptrend since. The treasury now holds almost 75% of the pool, making a scenario like the last one quite unlikely.
The treasury’s pool ownership rose from 0% at liquidity bond launch to over 76%. Including the DAO-held liquidity (which was not deposited until the 20th), protocol-owned liquidity went from 17% to 80%.
This ownership is to the point that external LPs should feel quite comfortable deploying into the pool. A significant risk on the part of a liquidity provider is that everyone else to pulls and they end up holding the bag. This risk is minimized significantly when the protocol holds a majority share.
All month, LPing has yielded 700–800% APY (roughly in tune with the APR rate of staking). We hope to see this come down in the coming weeks as the market prices in the different risk profiles of staking and LP staking.
Reserves
The risk-free value of the treasury (the absolute minimum DAI value) increased steadily past the launch of bonds and has accelerated since DAI bonds were deployed.
The market value of the treasury has done the same on a much larger scale. (Note: the market value of the treasury includes the market value of OHM-DAI SLP. This is a somewhat recursive metric; it changes with the price of OHM).
Supply in the Distributor
The distributor holds supply that has been backed and minted but has not yet been rebased to stakers. This contract was launched on the same day as bonds; we had already distributed 16,200 OHM from a separate contract before migrating to this one.
The contract now holds over 1.1 million OHM, enough to maintain a 100,000% APY staking reward for more than 4 months. This should continue to grow now that DAI bonds have been introduced.
(3, 3)
Ohmies hung out and (3, 3)’d all month. Not much more to say here
except that their TVL is now more than $125m.
(1, 1)
LP bonds saw parabolic growth until the BCV was increased on the 17th. The launch of DAI bonds (and subsequent total supply growth) opened capacity back up and bonders spent no time picking back up where they left off.
There’s not much data for this one yet but it seems to be off to a good start.
Treasury Market Value vs Market Cap
During our first run, the treasury was worth a 0.1% of our market cap. Today, that sits at 12.4%. Put differently, we started with OHM priced at 844x its backing, and today it is priced at 8.1x.
This number is a bit different when you count the value of the liquidity that was in the DAO. This is the more accurate value, though it is no longer that relevant. Accounting for that, we’ve gone from 45x to 7.8x.
Some Community Metrics
The number of Ohmies in the discord continues to grow.
More than 30% stick around longer than a week!
And they talk. A lot.
Some bonus ones
Holders only up
APY only absurd
For the trad-fi guys
Just in case annualized is too long a time frame.
Just for reference.
Overall
Not a bad month :)
On to the next.
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