🌊OlympusDAO study

OlympusDAO emerged as a groundbreaking project in DeFi, aiming to create a decentralized reserve currency protocol with its native token, OHM. The concept was to offer a digital currency, not directly pegged to fiat currency but backed by a basket of hard assets like DAI and ETH in the treasury.

Olympus had a couple of obstacles in growing their reserve-backed currency: How to increase the total amount of OHM tokens while making sure each one is backed by the treasury, and how to distribute these tokens. The founder, Zeus, devised an innovative solution: Olympus would distribute

Staking Rewards: Fueling Treasury Growth in Olympus and its Forks

New tokens to stakers as the treasury grew, offering a high APY from the treasury’s surplus to make sure each token was backed by exactly $1. For instance, if there were 100 OHMs worth $1 each, and the treasury had $200, the extra $100 would be distributed to stakers as OHM, resulting in a 100% APY.

Using this APY, the protocol could garner attention to the token. However, as the APY depends on the treasury’s surplus, the treasury would need a way to grow, raising the question for Olympus and its forks: “How do we grow the treasury?”

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