Fundamentals: Preserving Purchasing Power Through the Reserve Pillar
In the first part of the Olympus Fundamentals series, we shared the foundations of Olympus by defining the Who, What, Why, and How of Olympus. In short, OlympusDAO is building OHM, a community-owned, decentralized, and censorship-resistant reserve currency that is deeply liquid, asset-backed, and used widely across Web3.
Built on top of this strong foundation are three important pillars that support this mission:
- Reserve Pillar to establish Purchasing Power
- Liquidity Pillar to foster Universal Acceptance
- Utility Pillar to encourage High Usability
In this article, we’ll dive into the Reserve Pillar to explore how Olympus is establishing OHM’s purchasing power so you can feel confident using it in the digital economy.
The Reserve Pillar
The Reserve Pillar is responsible for OHM’s growth, stability, and positioning as a decentralized digital asset. In contrast to the incumbent fiat system that’s declining in value due to inflation, our goal is to build real purchasing power that withstands the test of time. To accomplish this we have been focusing on strengthening the Reserve Pillar continually since Olympus’ inception.
Two main layers make up the Reserve Pillar:
Community Experience forms the first layer of the Reserve Pillar. Our community is the lifeblood of Olympus, and we want to curate user experiences that make it easy for new and existing Ohmies to participate in the Olympus ecosystem. Here are some ways we plan to do that:
- DAO Onboarding — Crafting beautiful, seamless onboarding experiences to remove friction for new Ohmies. OlympusDAO is constantly iterating to ensure that whoever wants to contribute can do so with ease. Our contributors are creating new initiatives to help bring Ohmies into our fun and welcoming community.
- On-chain governance — We are providing the community with the knowledge, transparency, and power they need to decide the future of the DAO, fully realizing the ‘D’ in Decentralized Autonomous Organization.
- Community education — We recently launched Olympus Learn to educate the community on the Olympus protocol, DeFi, NFTs, and the entire crypto ecosystem so that all Ohmies can be experts in their fields. At the same time, we will continue providing high-quality educational resources like this Olympus Fundamentals series so that the community has a strong foundational education to learn and grow from.
- Tooling — Our team is focused on building new tools that provide users with a better understanding of the protocol and its risks; Stay tuned for the new Dashboard with improved graphs, charts, stats and strategies for a complete picture of Olympus.
- OlyZaps — One specific tool worth mentioning is OlyZaps, which is a simple way of reducing friction in staking and bonding through an all-in-one transaction. We have just released OlyZaps V2, which comes with a swath of upgrades and features. OlyZaps will continue to be developed as a pain-relieving feature for Ohmies. See it in action below!
Protocol-Owned Value forms the second layer. OlympusDAO has proudly pioneered protocol-owned liquidity (POL) as an innovation in DeFi to ensure the protocol has sufficient liquidity without relying on liquidity controlled by yield-hungry investors. We have continued to build revenue-generating services that grow the treasury to ensure OHM has real asset backing, including the following initiatives:
Introduced in September 2021, Olympus Pro (OP) allows DAOs & projects to take control of their emissions and liquidity mining programs through POL (protocol-owned liquidity). Since OP’s launch, we’ve onboarded over 40 partners across 4 different blockchains and layer 2s (L2s) while helping them collectively bond over $45 million in liquidity. In the process, we produced $2M+ revenue for the OlympusDAO Treasury, a win-win that moves us towards our goal of being the backbone of the DeFi economy.
For 2022, we have a lot more in store to benefit our community and partners.
- More Partners — We are targeting 45–60 new partners to join Olympus Pro by Q2 2022.
- Increased Customer Care — We’re working towards making OP a legitimate resource for DeFi protocols, which means creating the highest quality customer care by bolstering the teams leading our marketing, business development, partner success, EPD (engineering, project, and design), and data & analytics.
- More blockchains and L2s — Our goal is to cover the entire DeFi universe by Q4 2022.
Most importantly, we are introducing Permissionless Olympus Pro in 2022.Permissionless OP will allow any project across multiple chains or L2s to replace liquidity mining once and for all. This will allow any project to take ownership of their liquidity while binding itself to the Olympus ecosystem.
Bonds have always been one of our most important mechanics here at Olympus; so it shouldn’t come as a surprise that one of our most exciting releases was our new V2 Bond structure. Much like before, Bonds will continue to receive a lot of focus and resources moving forward. The new updates bring auto-staking and flexible vesting options into the mix, which could not happen without our recent V2 Migration.
- Auto-Staking is replacing our previous bond method for good reasons. With our new method ~ we are providing Ohmies with the option to lock their bonds within the vesting period while receiving all the rebase awards (at a discount) in one-click and one-click only. This new method saves time, increases accessibility and most importantly cuts gas by removing unnecessary transactions.
- Flexible Vesting describes the new vesting options that we are providing to Ohmies. We now support “Fixed-Term” and “Fixed-Expiration” bonds with variables adjusted to your specific needs. The new options are more user-friendly by providing users with the option to hold multiple bonds of different types, values and terms at the same time.
Crucially, these bond upgrades will soon be implemented for Olympus Pro as well!
There are some other ideas that we plan on exploring in the future. These ideas will take some time to develop, but they present exciting opportunities to build into the Reserve Pillar:
- Active Asset management — turn idle Treasury assets into productive assets to generate additional yield.
- OHMptions — Decentralized options have massive potential in DeFi, which we’ve only seen the beginning of with protocols such as our friends at Dopex and Premia. The idea behind OHMptions is turning the treasury into the counterparty of OHM option trades.
All these efforts and more will ensure a solid stream of Treasury growth under the Reserve Pillar to ensure the continued purchasing power of OHM.
Build With Us
And Ohmies, this is how we’re creating a decentralized reserve currency with real purchasing power. Curious as to how the Liquidity Pillar works in conjunction with the rest of the Pillars? Stay tuned for our next article in this series.
If this resonates with you or if you have questions, we’d love for you to reach out and join us in creating a better, more accessible financial system. Join our Discord and be part of the cOHMmunity.
Onward & upwards!
Olympus is a decentralized financial reserve protocol that provides sustainable compounding interest through its community-owned and protected treasury.