$BTC is not a reserve currency (and neither is $ETH).
There is one major misaligned thought pattern unique to Crypto that we feel needs addressing:
Fixation on Supply Token Economics.
As you’ll find out in the thread below, some of your favorite tokens do not actually make a great currency.
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Fixation on Supply Token Economics.
As you’ll find out in the thread below, some of your favorite tokens do not actually make a great currency.
(2/X)
In today’s crypto economy, this topic is more crucial than ever.
It’ll also help you frame an understanding of the value proposition of Olympus.
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It’ll also help you frame an understanding of the value proposition of Olympus.
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Let’s start with an example:
You could fork Bitcoin right now and make it deflationary, but it wouldn’t necessarily take off.
Because, well… you need people to buy the thing.
You need demand.
(4/X)
You could fork Bitcoin right now and make it deflationary, but it wouldn’t necessarily take off.
Because, well… you need people to buy the thing.
You need demand.
(4/X)
But let’s say there is demand for your fork; there is so much demand that your price skyrockets.
This is good for you and your investors, but not that great for the economic activity in your network.
Let us explain:
(5/X)
This is good for you and your investors, but not that great for the economic activity in your network.
Let us explain:
(5/X)
Imagine your Bitcoin fork becomes widely adopted and accepted by merchants all over the world.
There’s a constant demand for your token, but close to no supply, causing the price to increase.
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There’s a constant demand for your token, but close to no supply, causing the price to increase.
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Then, Alice wants to buy the new iPhone using her Bitcorns, but after looking at the price, she believes it will decrease when denominated in Bitcorn.
Not just Alice, but others now also think the price will decrease further and they hold.
Economic activity slows.
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Not just Alice, but others now also think the price will decrease further and they hold.
Economic activity slows.
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When you’re not able to match supply with demand, an environment is created where participants see change in the value of their money.
In this case, it’s beneficial to hold rather than to spend/invest, which stalls economic activity and growth.
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In this case, it’s beneficial to hold rather than to spend/invest, which stalls economic activity and growth.
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In the case where demand decreases, supply stays near constant, creating further volatility in the purchasing power of the underlying money.
(9/X)
(9/X)
They are phenomenal assets, but undesirable currencies.
We must realize that sooner rather than later, because the macro is shaking and we’re still relying on increasingly volatile fiat.
(11/X)
We must realize that sooner rather than later, because the macro is shaking and we’re still relying on increasingly volatile fiat.
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So then what works? What is a necessary requirement to be the reserve currency of crypto?
Olympus believes our elastic monetary policy driven by a new automated mechanism can help solve the problem.
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Olympus believes our elastic monetary policy driven by a new automated mechanism can help solve the problem.
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That brings us to our protocol (yep, we got you to read this thing just to talk about our own project).
On a more serious note, Olympus’ is made of a group of passionate people that truly care about creating a superior form of currency.
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On a more serious note, Olympus’ is made of a group of passionate people that truly care about creating a superior form of currency.
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Although most of CT remembers us as the crazy high APY protocol, our core mission has always been creating a superior reserve currency for digital economies.
And we’re getting real close to achieving that.
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And we’re getting real close to achieving that.
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In our case:
Olympus mints new $OHM in exchange for reserve assets like $ETH or $DAI when demand is high.
Olympus takes in $OHM from holders in exchange for those reserve assets when demand is low.
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Olympus mints new $OHM in exchange for reserve assets like $ETH or $DAI when demand is high.
Olympus takes in $OHM from holders in exchange for those reserve assets when demand is low.
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You can view the Olympus treasury as a war-chest; resources that defend stability.
Plus, that war chest is >$250m strong.
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Plus, that war chest is >$250m strong.
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This whole process will soon be automated with the help of ‘’Range Bound Stability’’.
This novel mechanism includes other stability levers that are outside the scope of this thread right now, but will be revealed very shortly.
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This novel mechanism includes other stability levers that are outside the scope of this thread right now, but will be revealed very shortly.
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Olympus also provides functions to further stimulate demand for $OHM.
ex: Flex Loans, which allows protocols to diversify their treasuries and create protocol controlled liquidity at reduced cost.
ex: Flex Loans, which allows protocols to diversify their treasuries and create protocol controlled liquidity at reduced cost.
It’s this chart that tells the entire story.
This is Olympus. This is how we believe a reserve currency should look.
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This is Olympus. This is how we believe a reserve currency should look.
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What makes $OHM so desirable:
1. Deterministic Liquidity (Olympus owns its own liquidity, and you’re guaranteed to be able to exit)
2. Flexibility in Monetary Policy
3. Native OHM-Bonds (Debt)
4. Scalability
5. Stable, but not pegged
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1. Deterministic Liquidity (Olympus owns its own liquidity, and you’re guaranteed to be able to exit)
2. Flexibility in Monetary Policy
3. Native OHM-Bonds (Debt)
4. Scalability
5. Stable, but not pegged
(20/X)
We’re giving you the simple version, but if we got you interested in monetary policy and/or $OHM, feel free to join the Discord: discord.gg
Our Sherpas have a vast amount of sources that can help you catch the drift of Olympus and monetary policy as a whole.
(21/X)
Our Sherpas have a vast amount of sources that can help you catch the drift of Olympus and monetary policy as a whole.
(21/X)
Congrats, you made it all the way through! Sheeeesh.
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