🤔Is This The Time to Ditch Federal Banks For Olympus DAO’s Ohm?
Unlike any fiat, Ohm — a reserve currency issued by Olympus DAO returned 1000% in annual yields to all its stakers while federal currencies worldwide depreciated by 10–50% last year alone.
All major federal currencies are plummeting in value. Inflation has spared none. Last year Turkey’s lira (TRY) plunged by 50% and hit hard the Turkish citizen. To understand the impact of this shrinkage in the value of TRY on Turkish people — consider a situation where all of a sudden you are asked to pay double the amount of money for loaves of bread than what you paid for it a year ago. The worst thing is that it’s not only the bread whose price has shot up but basically everything’s — groceries, meat, healthcare, transport, rent, education, and so on! The same is happening with every other federal-issued currency, including the US dollars whose purchasing power shrunk by 13% in 2021 causing people to lose money. But, one reserve currency stood out and in fact, did just the opposite of this hurting trend. Its price not only skyrocketed 60X in 2021 (with an all-time high of 1300X) but on top of that, it offered an annual compounded yield of 1000% to every customer who deposited their earnings in its treasury. This revolutionary reserve currency is Ohm which is backed by a basket of reserved assets and issued by Olympus — a decentralized autonomous organization. The contrasting success of Ohm when all fiats are bleeding begs the question — is this the time to ditch federal banks for Olympus’s Ohm?
Here are 5 reasons to believe so!
- First and foremost, the widely used fiat currencies are nothing more than a piece of paper. They lack intrinsic value and are printed recklessly as and when the government feels like doing it. There was a time when currencies were backed by precious metals like gold and silver and derived their value from these underlying assets. To put it simply, to print $100,000 worth of denominations the government must first put $100,000 worth of gold in their federal reserves. But, today this is not the case! For instance — between February 26th to June 10th of 2020, the US Fed printed and pumped $3 trillion into the economy from thin air. It did all this just by purchasing bonds from financial institutions and got away with it. The result? A tremendous loss in USD value! On the contrary, Olympus DAO’s ohm is backed by a basket of well-diversified crypto assets in the form of - DAI stablecoin(1 DAI = 1 USD), Ethereum, and others where DAI is the major backing asset. You can always be sure that regardless of the total circulating supply of Ohm you will be able to exchange 1 Ohm for at least 1 DAI from the Olympus treasury at any given point in time.
- Secondly, the minimum backed value aka floor price of Ohm doesn’t prevent it from attaining a value greater than that of 1 DAI its price can go well over the floor price. For instance — in the 2021 bull run Ohm was trading at its all-time high value of $1500/Ohm which was 1500X of its floor price. At the time of writing this article, it is being traded at $58 which is still 58X of its floor price. This means it is up to the market to decide what should be a reasonable price for each Ohm. Moreover, this arrangement results in a variable market price for Ohm based on market sentiments but a fixed floor price of 1 DAI to always fall back on. In case of an economic downturn, this floor price acts as a stopcock and prevents the Ohm from falling below 1 DAI. However, there is no fixed floor price for the fiat currencies meaning in event of a severe market crash, the fall in the fiat’s price can be pretty ugly as seen in the case of the Turkish lira.
- Thirdly, the annual compounded yields that are being offered by the Olympus v2 protocol on the staking of Ohm is a staggering 941%. Now, compare it with your bank’s petty 3% annual interest on your deposits.
- Fourthly, governments across the world are failing to run the economy profitably. Hence, to bail out their collapsing economies — arising from their incompetency they opt for easy debts in the form of bonds and ‘manufacture’ a desirable amount of money out of thin air solely based on these bonds. On the other hand, Olympus DAO has shown the world how to run a treasury profitably and efficiently. Currently, it has over $535 million locked in its treasury and makes over $200 million in annual revenues from its revenue sources like Olympus Pro, Liquidity Pools, Yield Farming, and Fee Sharing Agreements. What’s worth noting here is that this $200 million revenue is outside of its primary income stream of bonding and staking.
- Lastly, I feel too much centralization of power with the governments have made them go too far by daring to freeze the bank accounts of anyone who disagrees with their policies. The recent act of Justin Tredeau — the Canadian prime minister that involved freezing bank accounts of the protesting truck drivers reveals the totalitarian regime we are living under. It’s all nice and cozy until you dare to express your opinion. Hence, decentralization in the existing financial infrastructure is logical here like that with Olympus DAO which is totally governed by its community members' votes.
These are some of the pressing issues that made me believe a shift in financial governance is long overdue and decentralized autonomous organizations like Olympus are showing the way forward with their efficient and profitable governance mechanisms as opposed to the failing federal banks.
Olympus DAO | The Decentralized Reserve Currency
Treasury Regulated APY Treasury inflow will always outperform staking rewards Olympus is designed with long-term…
I love making Defi more relatable to common people with regular digestible content.🚀 Follow me to read my future posts.
Disclaimer: This information is only meant for educational purposes and is not financial advice. DYOR before investing.