- The Olympus platform (OHM) has seen a growth of more than 150% during the month of September
- Olympus is an algorithmic stablecoin – an algorithmic currency protocol, which eventually aims to become a stable crypto-native currency
- The aim of Olympus is to achieve price stability while maintaining a floating market-driven price
Since August, cryptocurrency has seen somewhat of a resurgence following difficult few months which saw some digital currencies lose more than half their value.
During this resurgence, a number of cryptos have gained spotlight following impressive and consistent growth.
One of these cryptos is OHM – the native token of the Olympus platform – which saw a growth of more than 150% during the month of September.
In fact, in the past seven days alone, OHM has grown over 40% creating a buzz among investors.
What Is Olympus?
Olympus is an algorithmic stablecoin – an algorithmic currency protocol, which eventually aims to become a stable crypto-native currency.
Although it’s labelled an algorithmic stablecoin, Olympus is more akin to a central bank as it uses reserve assets like Ethereum-based stablecoin, DAI, to manage its price.
The aim of Olympus is to achieve price stability while maintaining a floating market-driven price. The biggest difference between OHM and other stablecoins such as Tether (USDC) is that OHM is backed without being tied to a particular price.
Although the price floor of OHM is 1 DAI, a premium and the treasury value is added to that price. OHM differs from other algorithmic stablecoins like Ampleforth (AMPL) because it issues OHM to buy DAI and other assets and maintain a treasury.
Olympus was founded by a group of anonymous accounts going by the names of “Zeus,” “Apollo,” “Unbanksy,” and “Wartul”, with “Zeus” and Jeff Extor being the main code contributors.
Olympus was launched on April 2, 2021 where it entered the market at a price of US$371.61
Unraveling The Mystery
One of Olympus’ developers, “Zeus”, is rumoured to be a teenager and has apparently captivated the community with his charismatic personality.
Olympus also owns a treasury that mints and sells new OHM when it’s trading above its price floor of 1 DAI. It buys back and burns OHM when it is trading below 1 DAI. This process regulates inflation.
Moreover, OHM is issued by a process called bonding, where users sell an asset like DAI to the treasury and, in turn, receive discounted OHM. They can also choose to provide DAI-OHM as liquidity to the SushiSwap liquidity pool and receive discounted OHM. The bond can be redeemed after a five-day vesting period.
One of the main factors driving Olympus’ popularity is its strong marketing, which has allowed it to build and grow one of the most vibrant communities in the digital currency space.
Earlier this year, Olympus’ marketing introduced the “3,3” meme, which encourages staking capital with the protocol, saying it’s optimal for both parties involved. The meme is a modification of the famous “hodl” meme used by Bitcoin users and has become one of the most widespread additions to Twitter handles.
The recent success of Olympus has demonstrated its resolve of its developers and communities towards its ultimate goal, which is to be used as an alternative to the USD or other fiat currencies. Keep an eye out for it!