3 BUOYANCY AIDS TO PROTECT PRICE

1st:

Ohm has the protocol for people to stay staked when there's a bit sell off. So, the staking APR increased as the percentage of stakers decrase.

2nd:

Every Ohm is backed by 1 DAI. A DAI is a pegged stable coin, pegged to 1 dollar. So,that is the least floor ohm can ever get, i.e., $1, even though each ohm is backed by treasury assets to $160. But what this means is the moment price gets below $1, the DAO will burn and buy ohm to ensure it remains above $1.

This is similar to corporate buy backs in the stock markets where big companies buy back their own shares to raise the price of their stock.

:3rd:

Third aid is bonding. You give the protocol a 5 day loan and at the end of the 5th day, you'll get ohm at around 4.69% lower rate. Bondjng obviously isn't better than staking when the price is surging. But as the prices go down, bond prices will go up. You'll start getting higher discounts on bonding.

So, you see how smartly these guys have designed the protocol.

These are the 3 buoyancy aids.

Obviously the thousands of precent APY can't last forever. If you look at the table below

According to this table as the circukatimg supply increases the yield drops. Currently the supply is around 6.9M ohm. As the supply will reach 10M, the APY will drop and it'll be between 500-1000%. So, qe have knky a few months left to get thousands of percent APY.

--> Ohm also makes revenue. That's another reason pf such high APY and a great runaway as the treasury is increasing.

Difference between APR and APY

In simple words, APR is the rate. If you're getting say 24% APR per year then dividing it by 12 will give you 2% APR per momth. You can't divide APY because it is for compund interest.

Let's assume if ohm is giving 1%APR everyday then by math you'll think you'll get 365% APR in an year. But that's what makes it interesting, 365% is incorrect. Because of rebasing in every 8 hours that is compounding, you'll actually get the current APY, 5300% assuming it stays same.

I'm leaving you guys with a home work here. Calculate compounding monthly, weekly and daily and then you'll clearly understand how much ohm you'll make in an year with staking.

-->> Olympus has also released Olympus Pro, to help other projects own their liquidity. So, it's also earning commissions.

Now the final question arises: Is it a Ponzi scheme?

●By now you know they don't promise consistent high returns, yield decreases with the inctease in supply.

●They also don't promise guaranteed returns unless you're staking.

●Understanding Olympus isn't comples unless you're a newbie(now I think you know a lot about it as you're reading my second post).

● Everything is online and open.

● Remember the example of shitcoins I mentioned in the previous post? Unlike that olympus owns its liquidity so selling isn't an issue.

● Not registered with SEC but that doesn't mean its a scam. Most cryptos aren't registered with SEC.

●》》The only concern is that its run by an anonymous team and there can be a rug pull. But a project this big and value, its pretty reasonble to stay anonymous. But here's the thing in which olympus stands out again.

In most projects founders have their tokens locked in for a certain period of time,3-4 year normally. This is why when a project is 3-4 years old the chances of prices going down and getting rugged are the most.

Unlike most crypto projects, Olympus' founders, Zeus and Apollo, have their tokens locked by supply. They can redeem their tokens only if there are over 2 Billion tokens in supply. Currently there are 6.9M tokens only. So, Depending on the project's growth founders can't sell off their tokens for another 2-3 years in my opinion. And assuming conservatively, after 2-3 years there tokens will be worth $50B. So, I don't see any reason for rug pull if they can walk away if Billions of dollars.

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Now that you know all the basics you're ready to read more and take your decision to whether or not invest in the project. Lemme know if you don't understand something in the comments. My next post will be on Wonderland Time.