OlympusDAO was one of the most revolutionizing protocols in the blockchain world in 2021. It started all alone, but by the end of 2021, we could read and hear about new forks of OHM launching every single day. Since then, all of them have fallen apart, many of them have died a slow death, some of them have rugged, while some very few have been working hard along the way and are still alive and doing well.
Some people have thought that OlympusDAO has died together with many of the other tokens, mostly because the price per OHM has dropped from above $1000 at most to $27 at the lowest. But, price doesn’t always correlate with action, and price doesn’t always show a true picture of what is happening to a protocol. In fact, as several rebase token protocols started to fall apart, it turned into a current or a whirlwind that brought down every single similar protocol. No matter the quality of a project and its developers, they all suffered for this reason.
But, in the midst of this, OlympusDAO hasn’t been sleeping, neither has the developers given up. In fact, they have been working on improvements constantly and if you haven’t visited the OlympsDAO website recently, it is definitely time to pay it a visit once again.
What’s going on with OlympusDAO?
When we judge a project, we often look at the chart showing the price. But, it is important to understand that price is often more about hype than about proof of product and work. As you can see, OHM has been jumping up and down like a child in an amusement park.
As you can see from the chart above, the price of one OHM is almost at an all-time low, as it is currently trading at a price of $37.
But, in the midst of all these price changes, in times of increase and decrease, the team has been working constantly. There has been no speaking about giving up, instead, it is about making it stronger and stronger. And if you look at the OlympusDAO website right now, you will see what is going on.
OHM and staking
When I first read of OlympusDAO, they had an APY of 15,000% and it sounded crazy to me. Later I discovered that several of the OHM forks operated with APYs way higher. OHM quickly started to decrease the APY, and currently, they are operating with an APY on staked OHM a bit above 900%.
But, this page combined with the price chart is what most people look at when they consider whether or not to buy and/or sell their OHM tokens (or their gOHM). There are, however, other pages that will give you much more important information as you consider purchasing more OHM or not.
OHM and its treasury and revenue!
If you hear about companies that generate big revenue and operate in a way that grows their treasury, you would consider investing, wouldn’t you? That is why you should look at more than just the chart and the price when you consider celebrating the 1-year birthday of OlympusDAO together with them.
What’s in the OHM treasury?
As you examine the OlympusDAO website, you will find extremely specific information about their treasury, about their revenue, and as a result, you will better understand the protocol itself.
Take a look at the picture above you will find information about the value of the OlympusDAO treasury. As you can see, the value at that given moment was almost $480,000,000. The biggest part of the treasury consists of DAI tokens, meaning that they are stable coins that will remain at the same value, no matter what happens to the rest of the market.
The second-largest token in their treasury is Ethereum, and even though it isn’t a stable coin, most people who believe in the future of blockchain and cryptocurrencies will consider this to be a safe bet.
The third and the first largest currencies are FRAX and LUSD, both stable coins as well. In other words, the treasury and the value of the treasury are actually quite secure and not at all as vulnerable to volatility as treasuries of many other similar OlympusDAO forks.
How Olympus is generating profit every single day
It is one thing to have a treasury built with tokens mostly received from peopling buying bonds and more. But, OlympusDAO also has other sources of income that again grow the treasury on a daily basis.
One of the main concepts of OlympusDAO was to own your own liquidity, and OlympusPRO is also aiming at helping others own their own liquidity. So, when other protocols use OlympusPRO, it generates profit for OlympusDAO. But, since OlympusDAO owns its own liquidity, all trading fees are added to the belongings of OlympusDAO. If you take a look at the image below, you will see an example of this.
You can see that OlympusDAO owns liquidity pool tokens worth $31,000,000 for the pair OHM-ETH on SushiSwap. This trading pair is then generating (on average) nearly $250,000 per month in fees. Of course, if the value of both ETH and OHM should increase, the value here will be much higher, but should both tokens dump, then the opposite will happen.
Take a look at the image above, and you will see data about the overall OlympusDAO revenue over time. The biggest part of the revenue comes from bonds, and you can see that in one month the protocol has had total revenue of $12,000,000.
Happy birthday OlympusDAO
Once again, we wish OlympusDAO a happy birthday, and actually doing research for this article and looking around at the website has strengthened our belief in the future of this protocol. What do you think about the future of OlympusDAO? Are you bullish? Are you buying more OHM tokens or are you selling?