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Olympus DAO: $OHM is Smart Money!ποΈ
Recorded: April 10, 2025 Duration: 1:50:42Space Recording
Short Summary
Olympus DAO showcases its resilience and innovative mechanisms in the DeFi space, with discussions highlighting partnerships, growth potential, and the challenges of market fluctuations. As the project evolves, it aims to simplify its framework for broader adoption while maintaining a unique backing strategy that supports its value.
Full Transcription
Thank you. Thank you. Thank you. Music Thank you. Music Thank you. Thank you. I'm going to go to the next video. Thank you. Thank you. Music Thank you. Music Thank you. Thank you. Thank you. Thank you. Music I'm going to go to the next video. Thank you. Music all right we're about six minutes over waiting for zeus to hop up here fatty what's going on brother
what's up big dog How are you doing?
I'm good, man. I'm good. I'm going to be 100% honest. I'm grabbing a caramel macchiato,
half sweet, hot. Sometimes I got to do the double shot, but we're not doing that today.
I don't have coffee in my fridge. I usually have cold brew in my fridge and I don't. I'm not on
caffeine right now, which doesn't feel great but i'm gonna put
through that caramel the caramel macchiato sounds amazing oh bro it's my uh it's my basic chick
drink and i love it shout out to the basics out there definitely goes hand in hand uh with twitter
spaces so happy i didn't know you were involved with OM. It was a random surprise when they told me to DM you directly and sort things out.
I am but a janitor.
No, I've been around with Olympus since the early days, working the marketing side of
things and building with the team.
And had a little hiatus, had a baby, but I'm back.
So glad to be here.
We got the man behind it all, Zeus.
What's going on, brother?
I don't think I've ever spoken to you before.
Yeah, I don't think so either.
It's nice to meet you.
Right on.
Your microphone's a little faint.
I don't know if you can move it up a closer.
Is it?
Okay, I was just going to ask.
How is this?
That's much better now.
Okay, beautiful.
Right on. So I want to get a quick intro from zeus before we do that though just a background i i um i was going through my old
wallets i think was it last week or i don't know was it a month ago two months ago i don't know
when it was and i recognize that one of my walletsets, if you plug your wallets in the D-Bank, by the way, it does a good job of showing you what you have in there and the TVL.
And I plugged one of my old wallets in, and I noticed nothing crazy, but a good amount of dollar signs pop up, or rather figures pop up and what the
hell is this why do I you know why why do I have money in this account and I
noticed that it was it was Geome and if you guys are not familiar with Olympus
they were and I don't want to take too much time but from from my perspective
they were one of those there were the the first 5 million APY project where you stake and you just see number go up.
And this is during DeFi boom.
A lot of other projects tried to copy them.
You had Time.
I think Daniele tried to do his version.
You had Snowbank.
And there were so many other APY projects. And a lot of them,
most of them were considered Ponzi's. And I think a lot of people might have bundled Omen with the
rest. I think Ome got up to top 50 market cap at its height. But crazy enough, I am actually up
10. I've never sold my Ome. I'm still up 10x from my initial investment, which is crazy to think about because if you
invest in an altcoin in a bull run, 2021 was when I invested in own, you're more likely
than not down.
I don't know many alts that you'd still be up on, to be quite frank, unless you got in
super, super early.
So I think it's very cool.
And so I did some digging.
I got into Discord, and I recognized very quickly that they've actually carried out a vision,
early vision to be.
I think it was you guys were the first protocol to own your own liquidity, and that started
the trend.
And so now you've actually built out this really interesting ecosystem where I've actually able to borrow against my GM. And we can get into all that as well. But it's a lot of this stuff I
don't understand. But that's why we have Zeus here. But I want to take a step back. Zeus,
tell us a bit about yourself. I think the audience should be a bit more acquainted with who you are,
what you've built in the past, what led you to want to build out olympus and kind of what's been going on the last excuse me last four years because again it's quite rare to
see you know a project still alive and kicking especially one that launches in the midst of a
bull market yeah man um i mean i'm a i'm a humble rehabilitated dj um I'm a proud 2017 era top buyer, bought Litecoin as my first coins industry, still has not
ever returned to the price that I bought it at.
I actually top ticked 420.69 as the price.
I'm pretty proud of that one.
Yeah, I mean, I did some trading kind of, you know,
well, like everyone, you get in
and then you kind of stock home syndrome into the thing,
right, and it's like, you know, there's a lot of cool stuff
and suddenly it becomes your life, you know,
but the trading is kind of a, I don't know,
a roller coaster to say the least.
DeFi summer kind of bailed me out of that
because it's like wow you
know there's all this like d5 stuff you know before that there wasn't really anything happening
on any of these chains um you know so it's just kind of like go on binance or bitmex or wherever
and just trade them but you know for the first time it's like you can bring your money onto
ethereum and like there's all this stuff happening um as far as like the, you know, I find it funny that like, you know, on the math level, like OM is so heavily associated just with that APY aspect.
And I will say that we were not the first to have crazy, you know, like thousands, millions percent APY or whatever.
We were the first ones to have such high like token yields where it didn't go
to zero.
You know, that was kind of the major thing is, you know, you had this thing kicking for
months and months and, you know, just kind of refusing to all collapse.
You know, even if you, you know, today you kind of run the numbers on, you know, like
the people like to look at the unstaked value chart.
And it's pretty misleading just because you have to factor in the fact that like, you
know, okay, if you started at $100 with one token, and then you end up with 100 tokens
at $10, it's actually a 10x, you know, you got to kind of multiply the two of them together
you know, you've got to kind of multiply the two of them together to get a real read for value.
to get a real read for value.
But anyways, I mean, you know, for us, because we don't have rebasing anymore,
it just turned into, you know, it served this utility within the system.
But, you know, that utility is kind of outweighed.
Let's pause for a second. Let's talk about the rebasing.
Like, what was the idea behind the rebasing utility and
that crazy APY and then why the shift away from it?
Yeah. So the big innovation and thing that Ohm introduced is not that rebasing. We got
the rebasing mechanism from a project called Ampleforth. What we introduced is the concept
of backing. So what backing is, is that Ohm is very unique in that it has a treasury behind it.
So you have not only a token, which, you know, we're building OM to exist for similar utility as you would use ETH or Bitcoin or these other on-chain monies, but rather than just have a token and you can own it,
there's a market for it, hopefully, like in the case of those,
which is completely just people show up
and wanna provide liquidity for it,
but there's no kind of like assurance
or mechanistic like guarantee of that market being there.
Rather than just have the token, we have this treasury as well.
And the point of the treasury is that
the network can use it to do activities that are really helpful for the token.
So one of those that we introduced very early on was protocol and liquidity.
And the idea there is that, especially in DeFi summer, but even today, you know,
a big problem that would plague like assets is, you know, everything's going great until
liquidity providers don't feel comfortable providing liquidity anymore.
They pull all their liquidity and then suddenly everyone holding it doesn't feel comfortable holding it anymore because
there's no liquidity. And so they all race to get out and the thing just goes to zero
and you're done. So, you know, our solution to that is, okay, you can have a protocol
that provides liquidity itself. And it's always going to provide liquidity. It's never going to
panic because it exists
for the sole purpose of making sure
that the asset that it backs is doing well,
or at least has a market.
The market, like all the holders can do what they want.
Protocol is always going to be there
providing liquidity for it.
That one makes it easier as a holder,
you can feel a lot more comfortable
that you're not just going to wake up one morning
and there's 10 bucks in liquidity
when yesterday there was 10 million,
which is what happened with a lot of those DeFi tokens.
So we pulled like a lot of lessons
from DeFi summer and afterward.
But on top of that, because you have a treasury,
we have this concept of backing.
How backing works is, let's say that there are 1 million tokens in circulation and the
treasury has $1 million, you would just divide one by the other and you can say that each
token is backed by $1.
The benefit of that is that you can now kind of cut up, okay, if you're just evenly distribute this treasury among everyone, it's going to work out to be a dollar.
And so we can do things on a per token basis at $1.
So one of those things is that the protocol can buy any token out there for $1 or less, and it can maintain that commitment for every single token in existence. It would never run out of money because supply has to go to zero before its treasury goes to zero.
And we did that to a very large degree in 2022. There was real coordination, competence
collapse within our ecosystem, our project. A lot of people wanted to leave and the protocol spent more than a quarter billion dollars buying people out.
It contracted the supply by something like 55%, which is very unprecedented in crypto.
I don't think that anything even close to that has ever occurred, you know, but it's able to do that because it has backing. So circling
back, this is where the rebasing came in, is that the initial design for Ohm was that,
you know, I'll talk about it after, but there's a mechanism to expand backing. When we launched,
backing for token was $4. If we had never had rebasing, backing per token today would be about 3,200 or something,
3,100, somewhere around there. So 750, 800 times higher. The idea with rebasing was that, let's say
that you start with backing of one and backing grows to two. You would then rebase people so that
everyone's supply doubles and backing goes back down from two to one on
a per token basis.
So instead of having your backing double, you have your number of coins double and backing
stays relatively the same.
That was like the idea and the utility of it is that you push that growth onto supply
and everyone's balances so that you treat it more like a currency where the point is
to accumulate more of it rather than have it you know base asset appreciate like bitcoin where like
you know you just kind of hold the same amount of bitcoin and hope that the price goes up in this
case you know try to push more of a behavior like you would do with dollars where it's you know you
want more dollars you're not expecting your dollars to appreciate you just want more of them um you know and staking gives you one route to that um you know the problem
with that so you know in 2021 we had that 800 times growth in backing um we increased you know
through rebasing uh like supply by about 270 times um so it was actually understated by about 270 times.
So it was actually understated by about a third.
If we had actually followed through with the design
as initially designed,
we should have rebased people 300 times more
or like three times more, 200% more.
The problem is that this was very deeply misunderstood.
People would either, honestly, the smaller problem and the one that we really tried to focus on education for was people would look at it like dollar yields. They would like compare it to a stable coin farm.
And it's like, you know, slow down, OK, because this is its own unit.
This is not dollar denominated.
And so you can't look at, you know, 10% in curve and 1000% at Olympus, like you're looking at the same thing, right?
It's apples and oranges.
The bigger problem was that the dynamic of rebasing being tied to actual growth within the treasury and backing in the system was not
followed. I don't, you know, it's hard to really put myself back four years. I don't know how much
I really saw this dynamic, but I do know that that is really where the forks, of came in and were able to exploit perception in that in
our case where we had, let's say 250X rebasing growth and 750X back in growth, they would
all be the opposite.
So it would be that they would rebase everyone up 1000X, but the background you would have
only 100X in growth or something,
right? So you're rebasing people way more than the system is actually growing. And what you're
going to get from that is exactly what happened, which is that very quickly, it'll fall apart.
You know, everyone will lose a lot of value. There's, you know, much more of this game of,
you know, being the first one out. Because, out, because if people are treating it like there's actual growth happening in the background that is not,
then your game is to make sure that you're the first one out the door
when people realize that that's not the case.
And it's unfortunate because we caught a lot of association as a result of that.
There's nuance to this understanding versus they wouldn't even try
to explain it. They would actively encourage you to think about it like dollar-denominated yield,
to be like, oh, why would you be in curve when you could be in fork number 348 that has 12 million percent APY.
And a lot of people had a lot of fun, kind of Lambo calculator,
like dreaming big.
If price just only depreciates 90% in one year,
then I'm going to have a trillion dollars.
I'm going to be richer than Bezos.
So it's unfortunate.
In hindsight, maybe predictable.
It really did serve a utility, and I miss that utility, honestly.
But at the end of the day, it's just not worth it because we could reintroduce it.
We're going to have to spend all of our time going through this spiel
and trying to β it's like not worth the time at the end of the day, you know,
once we're out of state where the expected amount of growth in the system is a
lot lower than maybe we could reintroduce it. But, you know, until then,
you know, my expectation is like, you know,
we can get to a point where those yields would be justified again, but to actually
bring them back would be a bad idea just from the sense of, you know, you're just going
to re-invite the exact same dynamic.
What is it with Einstein's theory of insanity, you know, can't be doing the same thing and
expecting any different result.
So, yeah, I mean, feel free to, I think that this is honestly a really important one, just in the sense that like people that have only a peripheral understanding or like, you know, knowledge of us definitely do anchor themselves to that rebasing aspect.
insufficiently explained right there or you know want to ask more about definitely do i think it's
a big one uh but certainly very misunderstood yeah no doubt and i mean i think i think that was a
more than a sufficient explanation i can understand why you moved away from it and i can understand
now how it served its function and how things got out of hand. You can also just see the broad interest in Ohm.
I think it was in October or maybe September or October of 2021.
I don't remember exactly when.
Everyone started to pile in.
I think at the height, I was up like 60x on my investment, which is crazy.
on my investment, which is crazy.
I know Fatty mentioned that a lot of the OMGs kind of backheld and roundtripped those.
Well, yeah, it's like I may.
I mean, the funny thing as well is that prior to, you know, you saw this fourth wave really start with, you know, Wonderland.
And, you know, from there, the focus definitely became APY.
You had, you know, I think that we're the fourth most poor projects ever.
Like prior to that, there was actually a good understanding in our community about what I was just talking about.
And the focus within our community was much more on like the treasury side and, you know, what was actually going on, which I think is where OM has really innovated and like actually brings new things to the table.
It was only after you had these forts that like their purpose was just to like juice that APY by matching a bunch of zeros, you know, and that's how they would attract attention.
That that became like the focal point.
And I guess, you know, the funny thing, how it works out is like the bulk of people, you know,
it just in general kind of got or like noticed from or like in that period. But, you know,
it's not like our entire existence like that was really the focal point.
It was kind of like a late stage phenomenon in that early, like growth period that, you know, ultimately this is why we still have a lot of our community members that, you know, are still around and like diehard.
Is that there's a lot more that's always been going on under the hood.
always been going on under the hood. It's a little less, you know, sexy than like, you know,
10,000% APY on something that just like gets the eyes to pop in an interesting way. But,
you know, it's never, it's never not been the case. There's always been a lot going on,
you know, beneath the surface. One of the things that we're working on and Fadi's been,
you know, super helpful with is like communicating this has never been our strong suit.
I think that we've always had a very focus on building it.
I'm going to say focus again,
even though I'm repeating myself.
That with the marketing,
not even marketing,
but just like communication side being secondary, that does need to change and we're working on it.
We have built so much. It's a very interesting thing. I'm hopeful that we're going to get into it.
Four years later, and I want to dive into what's happening now, how you guys have evolved, what opportunities are available for people that want to participate and engage the OME ecosystem.
Please, everyone, retweet the space and also give Zeus and Fatty a follow.
I think that moving away from those early days to now, you guys have certainly pivoted. To me, there's a very cool utility,
very simple utility of just being able to lock up Geome, which is what you get for locking up
and then you can open a cooler. These terms are a bit foreign to me, but from a very basic viewpoint, my understanding is I am leveraging my Geom and I'm borrowing about half of that against it.
So let's say you have like $20,000 worth of Geom.
You can borrow about, I don't know, $10,000 worth and go do whatever you want with it.
That's a stable coin. So I think that's cool. And I think that the
mechanism, which basically makes it so it's nearly impossible to get liquidated, is also
interesting. So I want to really dive into the components of what value OM provides today and
kind of what you guys have built out and what the future looks like as well.
Yeah. So it's a little interesting in that we are not an L1.
And I think that how people think about us
is very different because we're not an L1 token.
But realistically, how you should think about us
is in the same realm as thinking about ETH or something.
So think of OM.
Imagine ETH or something, right? So think of OHM, imagine ETH is OHM.
In that case, you know, Dan,
what does ETH trade at today?
1500 bucks.
Let's just say that they are, yeah.
Let's say it's 2000, right?
Let's all feel good.
So imagine that they are kind of the exact same thing,
but ETH is 2000 and OH um is whatever it is 20 bucks um
so for eth imagine if eth had one uh what would the amount be imagine if eth had like 10 billion
dollars worth of locked liquidity actually it'd be a lot more. Imagine if like 50 or $60 billion worth of liquidity was paired against ETH in a liquidity pool and was not going to go anywhere.
That'd be your first one. And then second, imagine if you could borrow today $1,000 against your ETH
per ETH and not have to worry about it being liquidated. This would be the kind of best comparison
because we're looking to be treated in the exact same role
of what do you use ETH for?
It would be a store of value.
It'd be a collateral asset within DeFi.
It would be a pairing asset for trading other tokens.
It'd be a restaking token for securing other things
of economic value.
You know, basically ETH exists to have value.
And then, you know, people treat it as such.
Right.
And if the social network around ETH grows, then ETH will grow.
You know, and that's kind of the basic dynamic.
You know, it serves most of all to have value.
Even within Ethereum, it exists to have
value. And that's how proof of stake works, is that, you know, everyone stakes their value to
secure the network. Anyways, you know, again, the big thing with OM is that we have a treasury
and we have backing, right? So instead of just having pure social pact,
we all agree that this thing has value and so it does.
The problem with that is that if we stop agreeing
that it has value, it's no longer gonna have value.
In the case of Ohm, even if everyone stops thinking
that it has any value, as they have in the past,
there's still that treasury there. And so the protocol can step in and start guaranteeing that it has any value as they have in the past. There's still that treasury there.
And so the protocol can step in and start guaranteeing that it has value, you know, and it does so by just repurchasing tokens under backing.
So that was our 2022 into 2023 era was kind of nobody believed in them.
You know, everybody wanted out.
And so, you know, for like 16 months straight, you know, every day people would wake up, buy new coins under their mattress, dump them on the market, you know, day in day out, just kind of sell coins, sell coins, sell coins.
And on the other side of that, you know, was not even really any real people. It was the protocol on the other side, buying and buying and buying and buying and
buying. So you didn't have to rely on like, hopefully some whale comes in and saves us
from all of this because we have this guaranteed whale that's going to save us from all this. That
is the protocol. That's the whole purpose of having the treasury. That's the whole purpose of
all. But anyways, this is also where the cooler loans come in.
So the cool thing with the cooler loans, because first a little recap on what they are.
So you can borrow a fixed amount per Ohm, or technically per Geom.
But Geom and Ohm, you can think of as the same token.
You just kind of have to convert one to the other.
Fixed exchange rate, you're never going to have the price swing between the two of them. Uh, you can borrow a fixed amount. When you take that
loan, you pay half a percent annualized. So very, very low interest. Uh, and there are no liquidations.
It doesn't even look at an article. It doesn't know what the price is. You're never going to,
you know, price swing, you're out, never're out never gonna happen um instead with our current version the v1 uh you need to come
and extend it you know within a four month period and just kind of pay the the half a percent
interest kick it out another four months um if you don't, you would be considered in default and that's when
you would lose your collateral. And you get to keep the loan. It keeps your tokens, kind of like
that. We're introducing a V2 that actually removes that time component. So I'm just going to talk
about it. I think it's really important that you just made. So just to reiterate, if you open a cooler, the expiration date for that cooler is four months later.
And if you forget to renew the cooler, then you lose that own that you've collateralized.
Yeah, that is correct.
Although the beautiful thing, if you were to create a cooler today, within about a month, we will have our V2 live.
So you would want to just migrate to the V2
and the V2 does not have the time aspect.
So in the V2, your interest will just kind of accrue over time.
There still is the potential for default,
but the only way that you can default
is if your interest builds up to be more than like a threshold
where the launch configuration
will be that it takes about two years.
So, you know, in the, you know,
also if backing grows,
then you would have that expand out.
But basically the way
that you would want to think about it is,
you know, if you take a V2 loan,
probably a year later,
you'd want to check in
and just make sure that,
you know, it's in good health.
You know, on the site, there'll be a little like, you know, projected kind of earliest default.
So maybe you jot that date down, you subtract, you know, three, six months from it and then
come check in then.
Right.
But it pretty, pretty hands off.
You know, the time aspect was not super intentional
in the way that it manifested
as just being a headache for people.
So, you know, the V2, it makes that a lot easier.
But, you know, if I could talk about,
because hopefully you're listening to this
and you're like, wow, that sounds amazing, right?
Like Aave, you know, loans are terrible compared to that. There's a very, you know,
and Aave is a great product. We have very different considerations that allow us to do this.
And that is the fact that we have backing. So these loans are, the loan to token that you can
receive is based on backing. So it's currently about 90% of backing.
So if you go back to that example
where one ohm is backed by $1,
a cooler loan would be about 90 cents per ohm.
You know, from the protocol's perspective,
because it's the one lending here,
so there's not even an LP,
there's no one like providing stable coins
to write these loans.
You know, it's the protocol doing it itself. And from its perspective, you know, there's two
scenarios here. One of them is that you're just going to keep your loan in good health,
in which case you're keeping your supply off the market and you're paying it some nominal interest.
And it's happy because it's creating utility for home. You know, it's making you
happier as a holder. You know, it wins, it makes a little bit of money on interest. Although,
you know, it's very far below market. The other scenario is that you do default on your loan.
And this is actually the more profitable one for the protocol. The reason for that being that
if you're if your home is backed by a dollar and it lent you 90 cents and then you default such that it basically bought your tokens from you, it had a dollar for your tokens.
It's buying them for 90 cents.
It gets to keep 10 cents left over and it gets to reduce the supply of all.
So that's kind of a win-win that both of these scenarios are perfectly fine.
So you don't have to have, you know, price-based liquidations and, you know, like there's no
lender to protect here. Both of these scenarios are perfectly fine. In the case of something like
Abe, right, you have people depositing stable coins, they need to get their stable coins back.
And so that's why you have these price-based
liquidations is anytime that the system thinks that there's a risk, that it's not going to get
back the money that it might need, it's going to take your collateral and go dump it so they can
get that money back in advance. We don't have that consideration. And so we're able to give
these kind of amazing debt. There is one downside to this,
and that is that the loans do not change for better or worse based on the price of OME.
So when Cooler Loans launched about a year and a half ago,
the loan is like $10.76 per OME.
The price of OME at the time was like $11.30. And so effectively it was a 95% LTV.
It was a very, very high LTV. If you had $10 worth of ohm, you could borrow like $9.50.
Since then, the price of ohm is somewhat significantly higher, but the loan amount
has not changed. And so the loan to value has gone from like 95% to like 50%.
So, you know, in the case of Aave, you know, to keep using them as an example,
you know, Ohm is $10, you'd be able to borrow up to like seven.
And then Ohm is $20, you'd be able to borrow up to like 14.
Cooler loans do not have that dynamic.
So regardless of the price of Ohm, it's going to offer you the same loan amount.
That loan capacity is actually going to grow a little bit with V2 right at the get-go when
it's launched and then kind of continuously after that.
But, you know, it still won't be like market price dictates what you can borrow.
So that would be the cost of,
you know, being able to sleep soundly, knowing that your loan's not going to get liquidated,
is that, you know, price goes up, it doesn't mean they can borrow more. And this has been like a,
you know, kind of the first educational hurdle, I think, when people are learning about this is
just, you know, understanding that, you know, people will talk about how they got 90% LTV.
And then, you know, like a year ago,
and someone checks in today, and they're like, Hey, why can't I get 90% LTV? You know,
this is only like 50%. So that would be the reason why, you know, I, I'm going to stop there for
sake of if you have any questions. No, no, these are brilliant breakdowns and have a better
understanding of direction you guys are heading in.
I want to get some audience questions here in a moment, but I did want you to kind of highlight what assets back your treasury.
How is it allocated?
And then I also wanted to dive a bit deeper into what specific catalysts, because I think from a very high level, someone buying the
OM token would be buying it, one, for the utilities, right? Just the low risk loan mechanism
of the coolers that you just broke down and other utilities that you've also broken down.
But they would also hope that the price of
Ohm goes up, right? So they want to make money off of the asset and they also want to take
advantage of utilities as well. So Treasury, how is it allocated? And then also what catalysts
would cause the number go up? Yeah. So on the treasury, our treasury is pretty much purely stable coins.
We have a good relationship with Sky, previously Maker. Pretty much the whole treasury
is considered consists of USDS in the Sky Savings Vault or rewards, whatever,
which generates some baseline productivity.
And then like loan receivables with the cooler loans.
So when we provide a cooler loan, we can consider what we lend as still an asset just because
it's either repaid or the supply that collateralizes it gets burnt.
So it doesn't make sense to ever not repay it.
So it remains an asset on the books.
Prior to cool loans, especially,
there's a period where there was like ETH in there.
There was a couple of different things.
For a couple of reasons that changed to purely stables,
the biggest one is like almost not a hedge fund, right?
This is something really important to understand is, you know, I think that especially with Forks, you know, Forks kind of tried to run with this idea of like, oh, this is bootstrapping this like community hedge fund.
And the whole point here is we're going to fill up a treasury and then we're going to go make investments with that treasury and try to generate an ROI on the treasury.
And like, you know, that's how we capture value.
It didn't go well for anyone.
You know, I think that that was pretty easy to expect.
And so the point of the treasury, more than anything, pretty much entirely, is to be there, right?
The point of the treasury is to back home.
It's not really to make money on it.
It's not to generate an ROI.
You know, things like the sky savings rate are good just because if you're going to hold USDS, then you might as well be in there.
then you might as well be in there.
There's no added risk and you just earn a yield.
There's no added risk and you just earn a yield.
So we sit in there.
We actually have an upcoming Morpho partnership and integration
where we will be lending a portion of the USDS reserves in our treasury
against like Pendle, Athena tokens very, very safely.
The highest goal is always
the safety of the treasury. But that will safely allow us to, you know, claw a couple more percent
yield. You know, that's been very meticulously constructed. Just, you know, I really want to
hammer home that the biggest focus for us is always, you know, that the treasury does not lose money.
You know, I would much rather, if you gave me a coin flip that the treasury 10Xs or goes to zero,
and it's a 50-50 odds, I'm going to take the one where, you know, we do not even risk it.
You know, just because you as an individual might take that bet. The treasury does not take that bet.
Anyways, the other, what was the second?
Yeah, yeah.
The second was price appreciation catalyst for the token itself
because the average crypto investor want number go up, as we all know.
So, Ohm is, I would say that Ohm is the only store of value that actually stores value, right?
Other stores of value are a social pact where if we all treat this like a store of value,
then like it'll store value. But really, you know, like we've seen in the past couple of days,
right, where, you know, kind of markets are melting down and people need liquidity for this or that.
And for your store of value to store value and retain its value,
but a bunch of people need to sell it for whatever reason,
you need other people to come in and buy it from, right?
Like you are reliant on someone coming in and counter trading all of them, right?
And everyone wants to sell, Someone needs to buy from them.
In the case of Ohm, we have a treasury,
which is how the protocol stores literal value.
And then it uses that value to, you know, guarantee that the market is there.
So, you know, in the past couple of days, we have not been immune to,
you know, the volatility, especially there's this whole bear chain thing going on.
And so, you know, we had some some exits because of that, you know, there's kind of like a uptick, downtick that, you know, was kind of purely just bear chain stuff.
But you had the protocol buy back a significant amount of supply in the past couple of days.
You know, when Ohm grows, the protocol responds to that by saying, okay, I need to, you know, value is flowing into the system.
And I'm going to store some of that back into the treasury so that if we're in the inverse scenario where value is flowing out of the system, I can cover some of that as well.
So we know for a fact that
Ohm is not going to go to zero, right? You know, it can, you know, it can be volatile, it can go up,
it can go down, but there's a floor to what that, you know, how much that can happen. You know,
it's able to provide these cooler loans, which means, you know, my expectation would be that
it'd be very hard to go back to, you know, below like a 90% LTV kind of
as a floor, not a hard floor, but just kind of an economic floor. But, you know, as far as how does
this thing grow, you know, we very much do like recognize that the way that crypto networks grow is by incentivizing people with, if this thing
grows, you will benefit from it, right? Like that is how Bitcoin's grown, ETH has grown, name anything
successful in this industry. And it wasn't really that people, you know, came in and tried to
perpetuate its growth because they just like the thing, right? It's because, you know, they hold ETH, they're going to benefit from ETH growing because the price of ETH is going
to go up, right? And so they're going to go evangelize it, they're going to go, you know,
try to understand it, spend their time educating themselves and others about it.
You know, we have the exact same dynamic. So ultimately, it's like a social network, that social network grows,
the price of ETH will grow, or the price of home will grow. And then the system will respond to the price of home growing by growing its treasury. So we can guarantee that, you know, for this
growth, it's not going to, you know, be able to shrink to the state that it previously was,
right? We're kind of guaranteeing that we can't round trip on cycles of growth.
You know, it kind of moderates the upside and the downside.
But most importantly to me, it creates a structure where it can really never die.
I think that if Alma's going to die, it would be dead already, right?
Just having gone through what we've gone through, you know, from like 2022 to 2023,
it's like a really, really messy period of time.
You know, there's very, very low confidence in us.
You know, the forks created this, you know,
wrongful interpretation on us, yada, yada.
It doesn't really matter.
It's just that like,
no one really had any interest in
holding them. And for anything else, it would have just kind of withered to zero. Project would be
dead. Anyone that believed in it would be out of luck, I guess, myself included. But it didn't
because it can't. That is the big thing is that even in the short term, if people lose confidence,
if they don't believe in it, it's just going to keep going. It's going to shrink itself by shrinking the supply. So we shrunk supply by more than 50%.
So the system is smaller on like a supply basis. And then, you know, like my own thesis, which
I'm seeing play out, is that if you just survive long enough, people start to recognize, holy shit,
you can't die.
And that makes you feel really confident about something, right? You can sleep soundly knowing
that like, you know, now your bet is just will it grow? But it's not so much will it like shrink?
Will it just like, you know, wither out to zero? You know, people get bored of this toy and they
move on because attention is very fickle in the space. You know, that aspect is kind of removed.
So it creates a structure where we can really coordinate over long spans of time, instead
of spending all of our time worrying about treading water and just, you know, surviving
till tomorrow.
So yeah, there remain, I guess the short answer is there does remain, you know, network grows, you're going to benefit from appreciation of your own network shrinks.
You're going to, you know, lose money until we get to backing or close to it, at which point we get floored out.
Currently, that's like, I don't know, 50% below us.
So, you know, if you're in crypto, hopefully that's an acceptable risk.
To me, it is, you is. I'm very cozy.
I sleep soundly at night, at least when it comes to my old decks.
Other ones, maybe not so much.
Yeah, can I jump in here because I was waiting for this moment.
Gillian, Gillian, Gillian, Gillian, Gillian, Gillian.
Give me one sec, please.
So I'll get to audience questions here in just a moment. So Zeus, I am also class of late 2017, fall 2017, September specifically. And so I can understand the ups and downs over the last seven, almost eight years.
seen actually survive from cycle to cycle. And I guess what caught my attention was when I
found money in one of my wallets and it was home. I did some digging and your discord was super
active. People were quickly responding. And so to me, that was a big green flag and it was worth
reaching out and trying to get you on. So I'm glad we got to speak with you directly and hear about
what you guys have been doing. It's a testament to the confidence that people should have in the protocol
if they're going to invest in it.
It's rare.
It's rare to see this.
Guys, please give Zeus a follow and give the space a retweet.
We should have gotten the Olympus DAO account up here as well.
If you can go find the Olympus DAO account, give them a follow,
join the Discord. They're very responsive, and i think it's a i think it's a project
worth looking into as always not financial advice um okay so audience questions i don't want to i
can ask zeus probably a dozen more questions but we are running out of time zillion uh let's go
let's go to you and then we can go to the rest of hands yeah. Yeah, look, I'm a fervent believer that everyone
needs a second chance, especially in this environment.
A lot of things fail
because this is the nature
this environment. I mean, failure
is part of the game. Now,
it's important for me personally,
I'm not here, I'm not speaking from the... but personally
I lost probably more than a quarter.
Okay? Simply because i'm not here i'm not speaking from the but personally i lost probably more than a okay uh uh simply because the narrative was extremely interesting at that time um the
this whole new the narrative is is is one of the most superior narrative that i've seen
in the digital asset space especially the way um etc the especially the way it was portrayed.
In the last experience, I think they failed to explain the nature of debasements,
the fact that things will be diluted, the fact that one thing backed by another variable,
non-stable thing will also crash,
if not as fast as the thing that is backing it.
And then the thing that is backing it needs to be deployed fast enough
in order for it to kind of maintain certain value, etc.
My question to you is what's different this time?
Because the narrative is still good.
You guys are very good at this stuff.
I even put a quarter million dollars with you.
So that's not debatable here,
that you guys are pros at selling what you're doing, etc.,
and at having nice products, very nice to use, etc., etc., etc.
What is different from a mechanics perspective?
Because I lost that amount, right?
And I can survive it because I have other means.
But a lot of people lost a lot of money.
And this time around, it's important to underline not what you're good at
because you're good at the narrative.
You're good at the fantastic discord.
You're very good at explaining this is how tokens are distributed
and this is how value is captured, etc.
But this time around, what went wrong?
It's important to what what did you, from your perception
and from what did go wrong last time
that will not go wrong this time?
And this is, I think, a good starting point.
100%, thank you for the question.
Okay, I'll start with mechanistically
and then I'll do, like,
there's kind of social behavioral things as well.
So, you know, OM was very nascent on like a technical level in 2021 for sure.
You know, I never had the expectation it was going to grow so much.
So I thought that we would have a lot more time to kind of iterate as we went.
And, you know, kind of
overnight is gigantic. And so there's, you know, it's a lot harder to build that stuff when there's
a lot of value in the system already, right? You got to be very, very careful. We have never had
an exploit. We have never had any kind of security issue. I think there was one peripheral one that
there was maybe 10K lost or something but we we have always taken a massive
massive stance on like you know slow and steady to make sure the funds are always safe within the
system right because that is paramount to everything right you you lose money in that way like you you
can't really be over um so because of that though um you know the system today is far, far, far more automated and predictable than it was in 2021.
So we have what's called the emissions manager.
The way that the treasury and supply growths are algorithmic and deterministic.
So you can, you know, say, given these conditions, this is what the protocol is going to do.
So that one helps a lot as far as like ensuring
that the system is growing and tracking as it should be.
The big one is that we have cooler loans today.
So one of the big problems, I think 2021 into two
was no one really believed that backing was real, right?
They could see that there was a treasury there,
but it's like, okay, how do we know that this,
you know, that it's actually gonna be utilized to, you know, backstop the market? You know, how do we know that
devs aren't going to just run away with the funds, like things like that, right, which was valid in
a lot of the four cases where they literally did that. So I don't blame anyone for like having that
doubt. You know, we've been through a cycle where, you know, it's been demonstrated what it does.
And then also we have automated and, you know, put under the custody of on-chain.gov, that side of things as well.
You know, to the most part, Baruchain has added this one small delay to completing that process, but it is like so close and I cannot wait.
Yeah.
Anyways, the bigger ones I think are like behavioral.
So for one, you had this like massive wave of growth in like the, you know, up until December
of 2021, where coming off of our presale, where 90 or 89% of our total supply was distributed to like our early community.
So we basically gave away our entire initial supply at $4 per ohm and within eight months,
it was at $40,000 per ohm. So there was a 10,000X expansion in the market value of Ohm held entirely by the market.
Like, it's very difficult to sustain, to have that level of growth occur and not have a contraction, right?
So at the end of the day, you had to go from $4 all the way up to $40,000 in a very, very short period of time, and then bottom out around $3,000.
in a very, very short period of time
and then bottom out around $3,000.
So you had this like 93% contraction value,
which is not good.
It's not fun for anyone.
I never sold any tokens.
So I wrote it all the way down with you, brother.
But I didn't enjoy it either.
One thing to point out, it's not really important,
but Solana went top to bottom more than we did.
So it's generally not a death spell to do that.
I do think that part of that is par for the course within crypto, that if you're going to have this expansion of 1000x, you're probably going to see a contraction of 80-90%.
But that doesn't mean that we can't strive to mitigate such a thing happening again in the future.
Let me think.
I think that one thing is just the uncertainty and doubt around what will happen, right?
So you had this 10,000x, you know, wave of growth.
And, you know, now you start to contract.
And everyone starts thinking, you know, it's really easy to just look at growth and, you know, project it back into the future. And you're like, wow, this is great. But then when it starts
to contract, you're like, what's going to happen? Right. Because you do see, wow, that was a ton
of growth. And, you know, I don't really know what's going to happen. Right. And so like Bitcoin
is really strong because you have these, you know, four or five cycles worth of this growth
that people can look back and they
can say, okay, this wasn't as much growth by far as that.
And even off the face of that much growth, it didn't actually turn out that poorly.
You had this big contraction and then it bottomed and then it picked back up.
And now we laugh at anyone who sold during that contraction, right?
The history, I think, is really important of seeing what happened. And that allows you,
like informs you on what can happen in the future. And it honestly, like the amount of pain that we
had to endure in 2022, which I will just reiterate was like tremendous. Like it actually makes me
lose confidence in a lot of
other crypto assets, just in the sense that I don't think that they could handle that much
collapse in coordination and like, you know, desire for people to exit the system. But having
seen that, it's pretty much the worst that could possibly happen. We had the protocol buyback,
like 55% of supply or 50%. You know, I've tried to to calculate in the past something like
85 percent or 90 percent of all that. You know, if you took a snapshot of everyone holding at the
top and then you took a snapshot a year ago, 90 percent of those coins would have changed hands
either to other people or to the protocol. But basically 90 percent of supply dumped on the
market. The good thing about that is that you really couldn't have any worse, right?
Like the worst that you could have is a 10, 11% incremental sell pressure, right?
And so that means we've seen the worst that could possibly happen, which is that you have
a contraction back to backing.
You have the protocol buy back a bunch of supply.
And then now everyone who holds supply wants to hold their supply. No one is trapped
here. No one is here because they just can't find the liquidity. And the moment that someone buys
into the market, they're just going to dump on them and finally get out. That means that now
we're in a position where we can actually grow because people want to be here. They're not just
waiting for exit liquidity to get them out. I think that forward looking, when you're in that
position where we're looking at a contraction, the likelihood of everyone panicking and wanting out
is unlikely to be there. Rather, you probably see much more like this is an opportunity. Like,
wow, the cooler loan to value has increased to 90% again or something.
And I can get all of these tokens really cheap.
I can be positioned because I want to be here to accelerate that process of, you know, sifting through the supply overhang.
So that when we get to the point where everyone in the system wants to be there again, I'm going to be a bigger beneficiary than I was before.
in the system wants to be there again, I'm going to be a bigger beneficiary than I was before.
You know, it's really about like people having confidence in the long term strength and like
longevity of the system. You know, this is the case for us. It's the case for anything, right?
Like if everyone like had the belief that, you know, Bitcoin was going to be worth, you know,
nothing in five years and, you know, maybe it'll go up a little bit more in the
meantime, it's not going to go up a lot more in the meantime, right?
Because everyone's going to want out.
People are going to front run that.
The important thing with Bitcoin, with us, with whatever, is that people have confidence
in this thing still being around in the future, knowing what your worst case is.
That's kind of a unique own thing. Like, you know, everything else, your worst case is zero. You know, in our case,
your worst case is backing. Yeah, hopefully, hopefully that answers the question. I mean,
like ultimately, yeah, go ahead. By having coolers, it allows people to borrow their backing
or the majority of their backing once
the new coolers rolls out. And this leverage is now contained within the system. So what happened
last time was you had a lot of external leverage being built up, which then led to these cascading
liquidations. And that was outside of the protocol's control. So by shifting that all internal,
it always remains solvent and helps to eliminate that buildup of external pressure because nobody can compete with these loans the way that the protocol can provide them.
No one can provide better terms than the protocol itself.
Thank you, Holm. I'm going to rip off that just like very briefly.
Yeah. So I forgot about this, but this is like super, super important. In October of 2021, we saw this buildup of $300 million worth of debt against Ohm. People called it 9-9. And the whole idea was that, you know, because Ohm is rebasing so quickly, you take debt against it, you use it to buy more Ohm, and now you're like rebasing incredibly quickly.
you take debt against it, you use it to buy more Ohm, and now you're rebasing incredibly quickly.
The problem with that was that you're taking debt in dollars, your collateral is Ohm.
And so basically 10% of our market cap, even after that 10,000x growth, was debt. And then
on the way down, all of that debt got liquidated just as quickly. In like six weeks, we had to like pay out $280 million worth of debt as that collateral all got liquidated, right?
It was really, really messy.
And I think that that is honestly the strongest reason why we contracted so quickly was that you had just this insane liquidation spiral, you know, where like 15% of supply basically for sold
on the market and just like demolished our premium. So Kulu loans are like a very direct
solution to that, which is that, you know, if there's going to be demand to borrow against
Ohm, we're going to have the protocol do the majority of it. I do expect that like, you know,
there will be third parties that come in and start lending
to Omegan as our premium expands and it becomes economically viable. But the base of the credit
market against Om, I think is always going to be cooler loans. And those loans are non-liquidatable.
They're very low interest. They're basically the healthiest debt that we can possibly have.
This is the benefit to the system. It's kind of profitable if people default on their loans. What we
really want is if they're going to take debt, they're going to do so in a manner that doesn't
put us in systemic risk in the same way that all of that debt in 2021 did, because that
was really, really value destructive. Thank you for reminding me on that because more than anything,
I think that that was the big one. It is so hard to conceptualize how much debt that is
that got liquidated on the back of that was really a big demonstration of protocol and liquidity as
well that all of those lenders got repaid, even though I'm of the opinion they shouldn't have
been. I think that the lenders were very irresponsible for even writing that debt in the first place. They should have lost
money. They didn't because the system is so strong that they were able to get paid out,
but it came at the expense of everyone else in the system. And that is not so good. It's a
double-edged sword, but it is something that we have solved for to a large degree, I believe.
It is something that we have solved for to a large degree, I believe.
Thank you for the question, Zillian, and thank you guys both for the detailed answer.
I think the next hand was...
Let's go to Aisha.
Thanks, Noah. I have a question.
Thanks, Noah.
I have a question.
Okay, for risk management and security,
does Olympus handle the Treasury backing OM internally,
or is it interested to a third-party custodian
with regulatory oversight?
No, the Treasury is all on thing
all on chain and under the custody of on chain governance.
and under the custody of on-thing governance.
The like, there's a small degree of multi-state control that remains as this has been set
up, but it's at the point where it's click of a button.
Once we unwind the bari-chain aspect of things, which, you know, basically there's kind of
a choice of, do you leave a level of mobility
so that things can happen?
Or do we build out an entire cross chain infrastructure
to facilitate that?
Or do we do like no barra chain stuff at all?
My intent and expectation is that within four to six weeks,
most of the funds will be back on mainnet
and on chain governance will once again, control the whole thing. You know, most of the funds will be back on mainnet and, you know,
on-chain governance will once again, you know, control the whole thing.
I'm just joking. That would be long-term intent, 100%.
You know, the token holders, you know, own everything and control everything.
Yeah, thank you.
Thank you for answering.
Thanks, Aisha.
I think Mad had his hand up.
Once you put it down.
Oh, hey. Are you guys able to hear me?
Oh, I'm a long-time believer in OM.
I started off pretty bad during that crazy 9-9 situation.
I just wanted to have like a one
from the fundamental thinking in terms of OM,
cause I'm still trying to understand it
even though I've been here for a long time.
In terms of utility, do we think of the premium
as the fact that like OM will continue to build ability
to play these DeFi games?
Cause if there is a backing you have to
think of this as a backing why not just be in a stable um stable coin and try to farm at 30 percent
or whatever and take risks um if you're going towards home are we always thinking of that like
the built-up premium right now like almost 100 or whatever is is because that
we would continue to see the om community be top-notch in terms of building the d5 games
how how do you see that zoos i do not so i think if you look at crypto about 70 of the value in
this industry 75 is consolidated into what I would call store value or money,
right? Those being pretty much Bitcoin, ETH, SOL. You know, that is the space that
Alma is built for. And our premium and growth are going to be a reflection of recognition
of if not superior, at least different different attributes within that space, right?
So you have the same kind of, if we all treat this as a store of value,
it will be a store of value.
And it just becomes a social network of more people converting other forms of value into this
and holding it will expand the network, right?
Like that's how
these other ones work. But with the added benefit. Right. But I see it a little bit different between
ETH and Bitcoin. I say Bitcoin has that feature which you're talking about, but ETH I definitely
think has like added an ability to play on top of it. Like the fact that it can be programmed,
fact that it opened those avenues.
So I see it a little bit different
and that's why I was trying to see
like if there is a ability to see
how we evaluate this premium on top of the backing
as something which is tied to the community
or the fact that OM does better than others.
Because otherwise, it's just everybody just agreeing to that premium, right?
Again, just like with... I think I understand what you're saying, and I'm going to try to qualify a little more.
What you're talking about is more of a social phenomenon as well,
which is that people have built things that allow you to integrate ETH,
you know, as a collateral trading asset, restaking, you know, like all of these,
pretty much everything in DeFi, like utilizes these value assets to function, right? And we
will absolutely benefit from wider integration and utility within those activities. That is for sure. I don't think that on a protocol level,
that becomes too much of a focus, right? So it shouldn't be that we are like,
utilizing the protocol to like, seed liquidity into things or to deploy the treasury into things
like that, you know, the treasury exists again, you know, to be there to back home,
The treasury exists again, you know, to be there, to back home, less than like, you know, we're going to integrate like, you know, the Morpho thing is like a utility.
But, you know, the goal is not that we're going to, you know, be an LP in every protocol, you know, wherever.
You know, I think that when it comes to those activities, right.
But when it comes to those activities, right?
So let me give an example.
So let me give an example.
For something like Aave, a money market, when you use ETH to collateralize, to borrow stable
coins, right?
Most of that ETH or even, you know, because you can do this with Bitcoin through like
wrap Bitcoin and it's just, there's a trust relationship to it.
But you know, Bitcoin is programmable today in the same manner as ETH. It's just that you have to
trust a custodian backing the wrapper, which is not great. The fact that it's a native asset for
ETH is definitely a good thing. But I'm going to skip the example. It doesn't help. As far as ETH's
value goes, I don't think that it actually, like, you know, ultimately it still is the exact same, like, social dynamic.
And I think that this is why ETH is having some pain is that, you know, it's harder to communicate, you know, why it has a superior social dynamic that actually determines its value versus Bitcoin, right?
So you're seeing Bitcoin kind of increasingly eat its lunch, for better or worse.
So you're seeing Bitcoin kind of increasingly eat its lunch for better or worse.
You know, having the integrations is helpful, but it doesn't actually drive the value, right?
Like ultimately the value is driven by supply and demand.
And, you know, if you don't have the demand and you have too much supply, the price is going to go down.
You know, like having DeFi protocols is, you know, you can solve for some of that supply by having credit,
right? So instead of selling your coins, you're going to borrow against them. But ultimately,
it doesn't change the fact that like, you know, if tomorrow we woke up and no one wanted to buy
even a single ETH at any price, there would be no price. It would be zero, right? Or if no one
wanted to buy any ETH or Bitcoin for any price other than a dollar, the price would be no price. It would be zero, right? Or if no one wanted to buy any ETH or Bitcoin for any
price other than a dollar, the price would be a dollar, right? Because it's purely supply and
demand. You don't have any mechanistic assurance that it's going to hold any other value than what
someone on the market is willing to pay for it. No, I absolutely agree. But I think from the
ETH perspective, I have a difference of opinion, because what they are speculating on is that the games would be more, more have utility, the ETH games, like all the DeFi, like whatever they're building, like, you know, LRTs, everything, like any kind of these built up on top of ETH is going to have a more faster expansion
than the ETH expansion itself as a token. So that's how you could speculate on the premium,
on the value. But I was just thinking about how I should evaluate the own premium is what I was
trying to understand. I mean, yes. Again, we have the programmability, you know, and unique attributes like the ability to take cooler loans and protocol and liquidity that I do think, you know, no one has really done this yet, but I do think it will happen.
That, you know, you can build DeFi protocols that, you know, have different attributes because OM is a different asset than like ETH, you know, like ETH, you can't take really safe, cooler loans against it.
That's what I was going to get at with like,
you know, imagine in Aave,
for every one ETH and collateral,
they could like really safely rehypothecate that
and pull in another, you know,
thousand bucks worth of loan liquidity
and suddenly their economics are way better, right?
And now you can like write more debt
against ETH or safer loans. suddenly their economics are way better. Right. And now you can like write more, more debt against
ETH or safer loans. You know, my, my own bet is that we're headed towards a much more digitalized
financial system in which, you know, traditional currencies will still be around, but will,
you know, reduce in significance relative to digital non-sovereign monies.
And pretty much there's only one game in town for that right now, which is Bitcoin.
You know, especially with ETH kind of shifting its focus towards more like what you're talking about.
You know, I think that there's room with us for both.
But my own bet is much more, you know, like this is a, you know, kind of more neutral, non-sovereign alternative money that, you know, has ties to the traditional system by virtue of its treasury backing.
And, you know, there's some cool stuff that I can talk about as far.
Like, I'm going to cut it there. But, you know, yeah.
Thank you very much.
I appreciate your insight on it.
I think there's room for, you know, it's always going to be in the eye of the beholder at the end of the day, but, you know.
I appreciate the question.
Let's hop over to Rahmat.
Yeah, thank you.
I have one question.
Okay, you mentioned aachain a few times. So I'm
curious to know what is the nature of strategic partnership between LampusTOW and Barachain
and how does it benefit both ecosystem and does LampusTOW own Barachain?
Yeah, so we have a, the association has a staffed investment that the network made. There needs to be custodian.
So in that case, going back to Aisha's question,
the association is the custodian there.
But we do have like 1% of the network token.
It's like a vested SAFTed bag, which is nice to have.
I don't think that it really drives what we're doing there.
As far as the benefit that they're getting from our participation,
we are the biggest liquidity provider, we're the biggest pool,
we're the biggest driver.
I think that we brought a lot of value to the network through that.
And from our perspective, I think that this is giving us a platform
to really demonstrate the strengths of Ohm, especially just behaviorally.
So one thing that I have found really cool in the past couple of weeks as we've been there, and especially as proof of liquidity has gone live, is you can look at interest rates.
There's all these pools on Baruchain, and they all have APRs.
You can see that the APRs on own pools are always the lowest, right?
So that extends to, I think that the best example of this is, you know, at least, I don't know if
it's still around, but for a time there was a own Barra pool, as well as there were Barra
Bitcoin pools and Barra ETH pools, right?
And BARA stable, right?
So you had four pairs against the BARA token,
Bitcoin, ETH, dollars, and OM.
Dollars have the lowest rate.
Actually, I don't even know if that's true.
I don't think that is true.
I believe that OM had the lowest rate of all of them.
It was about 30% for the Bitcoin and ETH pairs, they were about 120%. And for the stablecoin pair, it was like 60%.
What that tells me is that people prefer to provide liquidity with Ohm rather than other assets, right?
There's a very good reason for that, which is that with Ohm, you have, you know, kind of capped impermanent loss to the downside.
It can only depreciate so much. It doesn't have a capped liquidity or impermanent loss to the upside.
So in the case of Ether Bitcoin, they also have uncapped upside IL.
They can go up to infinity potentially, but they have uncapped downside IL as well.
They can go down however much.
And so for you as a liquidity provider,
you gotta think about like, okay, you know,
what's my risk, what's, you know,
how much yield do I want in exchange for that risk?
And it, you know, was dictated to be 120% of the pair pair.
In the case of home, it was only like 30% or whatever it was
because it's just a better pairing asset.
You know, that is my takeaway from it.
So it's allowed us to, like, really demonstrate that just through market behavior,
like in a very, you know, explicit and natural manner.
You know, we're expanding that where, you know,
we have a couple of potential pools lined up with ecosystem projects
where they will create pairs against all them as well, you know, we have a couple of potential pools lined up with ecosystem projects,
where they will create pairs against all them as well, which is beneficial to them because,
you know, conceivably they get more liquidity per dollar in incentives. So that's good for them,
right? They want to spend less and get more liquidity. And we can also assist them in doing so by helping them with their bribes within the
proof of liquidity system.
Right?
Where we're getting benefit out of them creating a pair as well, because half that pair is
going to be owned.
And so the offer has been that for $1 in incentives that they push, we'll give about
20 cents.
So we get kind of discounted liquidity. They get a good pairing
asset and help spending or like with bribes that they would spend anyways. So it should turn into
for every $1 in liquidity that they would otherwise get, they get $2.50 worth of liquidity. And kind of everyone wins.
We, you know, for Olympus,
we get OM more widely utilized,
more widely recognized.
We get higher volumes.
We get more liquidity.
And, you know, it's kind of a win-win-win for all parties involved.
Awesome. Awesome.
Thank you so much for your time.
Over to you, Emma.
Yeah, thank you.
Thank you, Saeed, for the the question we got fatty bags up next thanks guys yeah i think one thing um that is difficult for a lot of people is kind of grasping how big-brained olympus is
and i think something that's very important something I'm personally focusing on in marketing is simplifying it. Because when you listen to all of this,
if you don't have a deep understanding of DeFi or crypto in general, it might go over your head.
But when you really start to educate yourself and figure out exactly what's going on,
you go, holy crap, this makes sense. These guys are building an incredible framework
that is built to last. It's built to be sustainable. It's really built to be something
that is going to be here for a very long time. And it's been proven, which is crazy. I mean,
surviving a bear market alone is something that I really can't count on maybe one hand.
That's too many fingers to count who's done that um so battle tested is a
big thing here and if you're on the fence of trying to figure out you know what is going on
here i i definitely would encourage you to hop in the discord chat with us shoot us messages we're
here all the time and we're building and what these guys have done over the course of the last
three years is kept their head down uh did not give up when things became difficult,
and continued to build and to keep that vision. And that's huge. And I always say it, I bet big
on big teams and people who have big dreams. And that's exactly what Olympus has been doing.
So full disclosure, obviously, I'm in marketing, but I'm not personally as fatty bags going to sit
here and get behind something unless I truly believe in it to the core.
So I'm very, very proud of what the team has done.
And I'm also very, very happy to see that, hey, battle testing happened.
And now this framework is really coming to life and the vision now is coming to life.
So that's really, really huge.
So if you're on the fence and trying to figure out what's going on, at the very least, come in and chat with us and figure it out.
the fence and trying to figure out what's going on at the very least come in and chat with us and
figure it out and you know up your defi literacy uh through just talking to the community and seeing
what we're doing and what we're building but that's my my little quick take to say hey it
might sound difficult now but in a very short amount of time this is going to be simplified
to a point where you guys go aha i just hit the aha moment. This makes more sense than other protocols in this ecosystem.
Yeah, brilliant points, Patty.
All right, so we got Captain Levi next.
And then I saw Venice with his hand up, but I don't see him on stage anymore.
Cap, hit the mic.
All right, everyone, I'm going to take my check.
How's my audio?
Sounds good.
All right, so there's lots to unpack and we could literally stay here, but we gained lots of insights from the teams.
But the way I see it, please, I stand open to correction, is it's like an aircraft with so many buttons, so to speak. There are lots of buttons and why do i say so
one of the tweets here these buttons are not they do appear at intervals when it comes to
the updates and all that so is there like a guidance or some kind of assistance mechanism
for people who don't who don't really know very much about this.
Of course, according to what Fatibak says, you need to have some level of experience.
But in the event where people who are interested in the Olympos DAO ecosystem but do not have
that level of experience, how is it easy to get into the Olympos-op ecosystem, so to speak, in any category?
And what's the category that these newbies, so to speak, should get their hands on?
Barry, you want to take that?
Yeah, go ahead, Zeus.
Yeah, I can take it.
Sure.
So, like I just said, too, which is really important is the difficulty right now is purely for newbies at the very least.
And I said this before on a on a podcast or a call that we had was like, you know, you'd be lucky to figure it out in a week of asking questions and getting legitimate answers.
Right. There's our communities just filled with really, really knowledgeable people that have a understanding. And they're very, very willing to explain to you why they're bullish on
the framework that Olympus is building, the value layer that Olympus is creating.
But if you spend two weeks or three weeks, you still might not have it. And some people,
I don't know if they have it and they've been there for a year. And that speaks to
one of the main things that we're trying to tackle right now, which is making Olympus understandable in like a short
sentence. And that's a huge hurdle to overcome when you're building something so ambitious.
But the beauty of it is that the ambition is not founded on fallacy. It's founded on the fact that
it's working. So we
have this real inspiration to go, yes, let's get this to a point where people get it instantaneously.
So to speak to your question is we will have a ton of new documents, information. There's a whole
level of growth and a sprint that we're going through right now to where you can just
going through right now to where you can just literally understand it as quickly as possible.
literally understand it as quickly as possible. That's goal number one.
That's goal number one. Goal number two is looking at Olympus in the grand scheme of things and
really envisioning what it could be in the future for what it is now. And that takes time in the
protocol. That takes time being there, participating, experimenting, et cetera. And us being able to
hold your hand, the community being able to hold your hand
and explain it, eventually it's gonna click.
And then once it clicks,
I think that you'll be just as bullish as I am
and the rest of the team is and the community.
We have one of the best communities in DeFi by far,
in my opinion.
So really just a key is to dive in.
Don't be afraid to ask questions.
No question's a stupid question.
And then once you start to understand
what you're
participating in, I think that from there, you'll start to see it as maybe the grand vision,
the grand scheme of things. And you'll figure out where it really positions itself in your
mind's eye, if you will, if that makes sense. Sorry, I'm a bit of a chatty Cathy.
And the other thing to say about Olympus too, is we're kind of in a category. We are in
a category of our own. This is something that's really, really innovative. And the way that we're
going about this carefully and intelligently is that we're creating something where I think when
people do get it and a lot of the really big brains who've been in this for a while and some
of the DeFi OGs, they see it and they go, aha, this is simple for me. But the beauty of that is that it really puts us in our own category, which allows
for us to educate properly and then really captivate and capture the minds of people who
understand it and then see the value of what Olympus is bringing. So we have like this wonderful
headroom of growth that's about to hit. And for me, it's like I've been I've been coining it the next leg up for Olympus. Right. We saw parabolic. We saw this this massive amount
of attention. Then builders put their head down. They make tweaks to the system. And then from that,
they build something better. And the last thing I'll touch on really quick is that
in the space, there's this really toxic mindset of where if you have a hiccup or if something
doesn't work out the way that it's planned to work out, it's coined as a failure, which is so
crazy. If you look at the startup world or you look at any tech billionaire, they always talk
about how many times they failed before they actually succeeded. And I think as DeFi and
crypto as a whole, we have to look at that
and start to reframe our mindset when looking at these protocols. It's definitely one thing if you
fork Olympus and you're a predator and you hurt your communities, like that looks bad on us where
people are trying to build something, follow the Northern Star and take this thing to where we've
always believed it will be. And so it's really important
to go, hey, you know what? These dudes are still here. They're still building. They're battle
tested. And now what do you have? We have something that's entirely new and a really,
really awesome change to the DeFi ecosystem. And I truly believe that you guys are going to start
to see Olympus on the mouths and the tongues of many more people as they start to wake up to this.
So we'll simplify the docs. We'll simplify the information.
We'll educate you guys.
And come in and ask questions.
Hit me up in DMs.
And we'll get it 100% explained to you.
And it'll be much easier than trying to cover
just a massive framework in one hour and 15 minute Twitter space.
Let me try.
Just real quick.
And then, Zillian, go ahead.
Yes, sir.
I just commented under the space or whatever
um there are two resources that you can check out that are really good so one of them is the
dashboard on the olympus.com website um which shows a lot of good like treasury stuff um
and supply stuff uh there's like the emissions manager and cool loans tabs there as well, which, you know,
a lot of it sounds more complicated, like than it is as far as like tangible things within the
system. You really just have to date, like the, or today, the, the treasury, the emissions manager,
the cooler loans. And then the other thing that I linked was a Dune dashboard that I've built,
which shows, you know, a caveat that one of the treasury queries is broken right now.
So I'm trying to fix it, but I haven't been able to really get to it.
But it shows a lot of good historical charts with our supply, the cooler loans, like the yield repurchase facility, emissions manager.
like the yield repurchase facility, emissions manager.
There's a lot of good stuff in there.
So just, you know, I would ignore the treasury ones
and the premium ones for right now,
just because one of those treasury queries
kind of broke on me
and I haven't been able to fix it yet.
But, you know, if you just want to look at stuff,
I would say that those are both really good resources.
Okay, go ahead, Julian, start at that.
Yeah, so, you know, this is an exercise
that I try to summarize to my head, obviously,
because when you're invested as much as I was vested
from a financial standpoint, I try to reason it.
And OM is basically a social experiment
of creating money backed by a variable assets,
a floating asset, and with built-in backstops to back the price.
And Ohm believes that the value of the Ohm token is value of its distribution, not of its utility.
How many people hold it and how many protocols use it, etc.
And not how is it useful to create like a gas etc right so so that's it i
mean the the idea here basically you you're building an ecosystem recreating money okay
and it's a social experiment okay so social experience so now in v2 you're building much
more backstops okay you're kind of controlling the initial distribution,
but you're still going to push how much it is
from a proliferation standpoint to bring in users.
The problem is that the users, once they bring in,
in order to kind of really assess the value of Ohm,
we kind of assess the risks related to home.
Look, it took me a big loss to understand what it is.
And I have a master's degree in finance
from London School of Economics.
And I worked in bulge brackets for 10 years of my life.
And obviously, so this is what it is.
So in a very short sentence, I think it's a social experiment of creating money with built-in backstops to back the value.
The issue here is that those backstops are also variable, so et cetera.
So this is what it is, right?
It's a social experiment to build money for DeFi.
Would you consider stable coins as variable value or like
floating value i mean it depends on the stable coins are backed by are backed by bonds yeah i
get like the the question there is to you know is the denominator like i think that everyone
denominates value in dollars to the most part um you know that's still floating value but it's it's
a little bit more nuanced than i think if you say that the the perception might jump to our treasury is denominated in bitcoin
or an eth or something that is you know much more volatile and like that's volatile yeah um so the
whole treasury is stable coins um so we don't really have volatility as far as like speculative
assets and you know like like the purpose of the treasury is not to speculate on the value of you know ether or whatever so so the so they're stable so now you're doing your bonds
are all uh only stable coins yeah so bonds have always only been stable coins um there was like a
one one and a half year period where there was some amount of eath in the treasury um prior yes
i did it yeah before before cool alone went live everything got
consolidated into stable coins so for the past okay so now it's all been stable so the backstop
value is basically backed by stable coins which is much better for the protocol and much more stable
correct and and and i'm with you with these thesis that's that the value if you're able to proliferate
home to a point where it's everywhere
and everyone recognizes,
of course it will build in a social value.
Of course.
So you are a money issuer
and this is basically the opportunity
to get on board with a money issuer
with all the risk that it entails.
And you guys are, exactly.
So I think this is what your marketing team
should clearly disclose to people.
People don't understand also the power of debasement.
I don't know if your V2 now has like the crazy yields that it had before.
It does not.
Okay, so debasement.
I like it.
Was that sorry?
Was that sorry?
This is really helpful.
Sorry, continue.
Yeah, yeah.
It's helpful for you as well because, look, me i want my my v2 also i want to take back
my money so so so look the debasement so a lot of people don't understand debasement
uh now that you you kind of went beyond that so these are the issues basically the people need to
understand the issues the economical concepts that they don't understand right and they get
into this and they think it's a speculative game where the real game here is proliferation.
Yeah. The real game is how many protocols in DeFi are have home in them.
How many people hold home? That's that's where you build the social value layer.
And obviously crypto is a social value layer. What is Bitcoin? Right.
So that's that's that's basically the idea. I agree with that. One thing that I'll add as well is just that we're not an L1 gas token,
so we don't have that utility there. We do have added utility as far as the protocol and liquidity
goes. So you have this utility of a guaranteed market maker and a lot of liquidity that no
individual is providing.
And as like really discretionary,
I'm not feeling too hot about this anymore.
I'm gonna pull all my liquidity.
We have utility through the cooler loans.
So you have this like,
the way that I look at it is that OM is a money
with a buyer of last resort through backing,
as well as the YRF.
It has a seller of last resort
through the emissions manager. It has a market maker of last resort through backing as well as the YRF. It has a seller of last resort through
the emissions manager. It has a market maker of last resort through protocol and liquidity.
It has a lender of last resort through cooler loans. So those are the utilities that I guess
we gain. We give up the gas side. And then one last thing that I will throw out is just,
you know, like we have just by virtue
of like, you know, if there's idle funds and there's no added risk, you know, deploy them,
get some capital or get some yield. We take that yield, we push it into the yield repurchase
facility, which basically just takes it, buys OM with it, and then strips the backing off of the
OM that it just bought and uses that to buy more OM. So it kind of is able to like, you know, safely lever its purchases so that they, you know,
we exchange backing growth from yield in exchange for supply contraction through that yield.
But it actually manifests in that we contract our supply through that faster than ETH does
through its gas cost. So, you know, as far as the pure economics of like, you know, supply contraction from that utility, YRF alone exceeds, you know, Ethereum's kind of gas revenue.
100%.
So, which is pretty cool.
So, and then the missing leg that I think you have talked about, thought about, but you probably did not implement yet and i want you
to look what i'm doing because i can help you with that is the user acquisition because your user
acquisition was your crazy apys now that you don't have crazy apys how are you going to attract new
users well you're going to attract them via protocol like me for example that that that that
recycles failed meme coins so i have a very easy user acquisition there and if
i have an own pool etc i can bring them directly to the protocol so your user acquisition well me
or something else your user acquisition has to shift from proposing crazy apys to something else
and that will make your system completely good then you'll be able to proliferate with ease
good then you'll be able to proliferate with ease and with sustainability all right let's talk man
i'm super down yeah i think these these sorts of spaces help as well zeus where you guys get on
and actually explain the history and debunk some of the myths from the early days and highlight
the utilities and you know i think this space was helpful to a lot of people. I'm getting a lot of positive DMs.
And I think that even I got a better understanding.
Like I was going to let my cooler just, I was going to forget it.
I didn't realize I needed to check up on it.
And don't do it.
Extend alone.
And then come be to migrate.
So again, I think, you know, Zillion made some great points. But I also just think that you guys should get on different spaces with different channels and different creators and kind of talk more about your story.
I think the really interesting thing about OM is what Fadi highlighted earlier.
I can count the number of projects that have lasted across multiple cycles.
Well, I guess at this point on a couple of hands,
if I'm being completely fair,
but it wouldn't take up all 10 fingers,
I'll tell you that.
Anyway, Zeus, any final words before I wrap things up here?
Yeah, I mean, just to, you know, rip off of that,
like, I think, you know,
as far as the trajectory has gone for myself, at least,
you know, I think that we've been,
2021 was like way more attention and fanfare
than was ever expected.
You know, I personally didn't see the system
as quite ready for that.
And so, you know, in the desire
of never seeing anything like that happen again,
we've spent the last three years
like very, very quietly just building
the foundation of this thing up
to the point that it is at today,
which is where I feel really like confident and excited to talk about it more freely and more
openly. Like we're, you know, starting to do, like, this is one of the first ones that we've
really done, you know, and the intent is to continue to do this because now we're at this
point where pretty much everything is built. Like the, you know, especially once Cooler V2
goes live next month, you know, we're like really at a point of there's not a ton left to build.
And now it's just a matter of helping people understand the system.
And like, you know, what it's bringing to the table, you know, which is what we're doing here today.
And like, you know, more of that.
Thank you for giving us the platform to do that.
But yeah, I mean, we've really just taken this, like, we've been so quiet,
I think, for a very long time to the point that, like, you know, some people think that it did
just kind of fizzle out, like it very much did not. It's just been like, you know, get our house
in order, get this like really, really, really strong foundation. So that, you know, when we
start taking the social focus, and like, you know, try to bootstrap that aspect of it, the system can actually
handle it this time. You know, that has really been the focus. I feel really good about it.
It's a good time to be an OMI is my opinion. Brilliant.
Yeah, I'm glad to say I'm an early OG. Still holding and still up.
Yes, sir. You can take that mantle for sure.
Still up.
One extra thing to add, too.
I mean, this is, like, not super important.
But, like, if you do the rebase math and on my Dune dashboard, it has it on there.
UMM is down, like, 75% from its peak in holder value.
So it's not great.
But, you know, I think that a lot of people will look at CoinGecko and be like, oh, it's down 98%.
Like, that's not true.
You know, 99.9 plus percent supply was always
staked um so the the actual metric of value you know needs to account for the rebases um and under
that metric it's like minus 75 maybe like 77 but uh certainly not as bad as you know you would
think just looking at coin gecko in the unstaked chart. Just send me a DM, please, if you have my DM.
Send me a DM.
Will do.
I think that what you got to do on CoinGecko
is switch from price to market cap.
Does that give a more accurate depiction?
No, here's the problem with that,
is that 2021, we doubled our supply through bonds,
but then contracted the supply like 55%.
Our supply, it's really actually pretty crazy.
Our supply has grown from launch to today about 3%, and our treasury has increased like 800x.
So that has been the economics there, is it's washed out to pretty much no supply, but the treasury is like orders of magnitude larger. But it also, it kind of sucks because you can't even use the market cap.
You know, that'll show you that it contracted like an extra 55% more than it did. So it's better
than unstaked chart or price, but it's still not quite there, I guess. Or you guys can just DM me.
I did the quick math right now. And based on where my bag was at all time high versus now, it's down about 76, 77%. I'm just doing some mental math here. So I could be wrong. this and then you just scroll down a tiny bit there's a price section and the big adjusted chart is like the actual um you know i i got a query that basically does all that math for you
so you can look at it historically makes it nice and easy really just sucks because that's not
really where people like you know uninformed will go but now you're all informed you can go
look at it so yeah zeus threw that in the comments, by the way. Guys, please, please, please retweet the space
and please follow the speakers up on stage.
Remember that everything you hear on these broadcasts
is meant for educational purposes.
Only nothing is financial advice.
So be safe out there
and we will see you all on the next one soon.
Take care.
