OHM

Olympus is engineered to be the world’s best currency by ensuring long-term purchasing power and predictable pricing—achieved through a suite of seven interlocking mechanisms. At its core, OHM is the token, and Olympus is the protocol that powers it. Let’s break down these components:

1. Treasury

Olympus starts with a robust treasury of $240 million, of which $181 million is liquid. This liquid backing—about $11.70 per token—serves as a financial safety net, much like a company’s cash or book value per share. This reserve is critical because it underpins every other mechanism in the ecosystem.

2. Protocol-Owned Liquidity

Because Olympus controls a large treasury, it can own the liquidity pools where OHM is traded. This means that when you buy or sell OHM, you’re often transacting directly with Olympus. This arrangement not only generates small trading fees that flow back to the treasury but also guarantees there’s always liquidity—even during market extremes.

3. Range Bound Stability (RBS)

RBS is an automated mechanism designed to stabilize OHM’s price. If OHM drifts more than 15% away from a moving average, RBS triggers buybacks (when the price is low) or token issuances (when the price is high). For example:

• Price below backing: If the backing is $11.00 but OHM trades at $10.50, Olympus may buy back tokens at $10.60, thereby increasing the backing per token.

• Price above backing: Conversely, if OHM’s moving average is $15.00 and the market price hits $18, new tokens are issued at a discount to the market price, again boosting backing per token.

Although RBS was disabled in late 2024—having already proven its stabilizing effect—the very existence of this mechanism continues to influence market behavior and investor confidence.

4. Cooler Loans

These loans let investors use their OHM as collateral, borrowing up to 95% of the token’s backing value at an annual interest rate of just 0.5%. If an investor defaults, their tokens are burned, which reduces supply and increases the value (backing per token) for remaining holders. Thus, Cooler Loans offer a way to leverage holdings without adding risk to the protocol.

5. Emissions Manager

When OHM’s market price exceeds a 100% premium over its backing, the Emissions Manager comes into play. It sells OHM in the form of bonds at a slight discount, converting stablecoins into additional treasury backing. This process increases backing per token and naturally moderates the market premium over time, creating a dynamic balance between issuance and backing.

6. Yield Repurchase Facility (YRF)

YRF leverages the yield from idle treasury cash—in safe stablecoins earning 12.5%—to buy back OHM every week. With about $52 million in these stablecoins, YRF contributes roughly $6.5 million in annual buybacks. This consistent purchasing creates steady buying pressure, reinforcing price stability and investor confidence.

7. Convertible Deposits

Soon to be launched, these function like low-risk call options. Investors deposit stablecoins, which are then used to generate yield. In exchange, they receive a deposit token that can later be converted into OHM at a predetermined price. If the market price exceeds that strike price at maturity, investors convert their deposit into OHM—otherwise, they reclaim their stablecoins. This mechanism creates immediate buy pressure while deferring any increase in token supply.

The Overall Ecosystem

Each of these mechanisms is designed to work in concert:

• The treasury underpins liquidity and provides the funds needed for buybacks and loan facilities.

• Protocol-owned liquidity ensures stable market participation even in volatile times.

• RBS, Cooler Loans, and Convertible Deposits dynamically balance supply and demand, while the Emissions Manager and YRF create a feedback loop that maintains an optimal premium over backing.

Therefore, even when the market faces downturns, Olympus is equipped to automatically buy back tokens below their intrinsic backing value, ensuring stability and fostering long-term value growth. The system is resilient and self-correcting: if buying pressure falters, mechanisms like RBS can be reactivated to restore balance, and the treasury’s cash reserve acts as a buffer against extreme volatility.

In summary, Olympus’s carefully integrated design not only supports but continually enhances OHM’s value, making it a uniquely stable and predictable financial asset in the volatile world of crypto.