Ohm is the native token of Olympus DAO, an Ethereum-based protocol built to provide users with a vibrant and sustainable DeFi ecosystem.
Launched in March 2021 by its pseudo-anonymous creator Zeus, Olympus’s DeFi ecosystem was created for non-algorithmic stablecoins, and it is controlled by its decentralized autonomous organization (DAO)
One of the most important DeFi products provided by Olympus DAO is staking. With staking, OHM holders and Olympus DAO users can lock their tokens in a time-based smart contract to earn yield returns.
In this article, you’ll learn more about Olympus DAO and its native Ohm token, how the DAO works, and how to stake your Ohm token for yield reward. Let’s get started.
What is Olympus DAO?
Olympus DAO is a decentralized autonomous organization that focuses on creating alternative liquidity mining strategies for its members. The Ethereum-based DAO was built to develop a new era of DeFi with protocol-owned liquidity.
With DeFi 2.0, Olympus DAO aims to improve DeFi transparency and solve lingering issues with DeFi by providing and promoting liquidity rewards. Launched in 2021, Olympus DAO promotes inclusivity and allows all of its members to participate in developing and maintaining the protocol.
In other words, with Olympus DAO, there is no central body. Everyone has an equal say in making proposals, discussing issues and posting snapshots for all members to vote within the DAO. This way, the community gets to decide what is best for the protocol, strategic changes, policies etc.
Another important part of Olympus DAO is its unique approach to maintaining value and preserving its members’ investment with a free-floating market backed by OHM token.
It is a pivotal part of Olympus DAO’s ecosystem and is resistant to inflation. This is achieved by backing the token with stable crypto assets.
How Does Olympus DAO Work?
As mentioned earlier, Olympus DAO aims to create a vibrant and transparent DeFi ecosystem with its free-floating asset, OHM. Olympus DAO ensures that home supply is constantly stable by supporting the token with bond sales and LP fees from staking.
Additionally, home is pegged to DAI stablecoin, and tokens are minted or sold off based on OHM value so that they won’t exceed or stay below DAI via a bonding and staking coin loop model.
Bonding is the first process of the Ohm coin loop system, where Olympus DAO offers bonds to users. Once they buy the bonds, they can earn discounts for investing in Ohm tokens.
Bonding provides an effective way for less financially capable Olympus DAO members to buy Ohm tokens at a lesser price. To receive bonds, users must stake their stable crypto assets in a pool to get OHM tokens. This can be DAI, FRAX, LUSD or their liquidity provider tokens.
When the OHM token price is discounted, Olympus DAO buys bonds from users and burns OHM tokens so that the supply can be reduced and the value can increase.
However, when the price of OHM is at a premium or exceeds that of DAI, Olympus DAO mints OHM to reward users via staking and send them as bonds. This way, users enjoy high staking rewards regardless of the price of OHM token.
Steps to Stake Ohm Coin
Staking the Ohm token is straightforward. One of the amazing features of this passive earning system is the mouthwatering Annual Percentage Yield (APY) of up to 8000% it provides. This is because staking Ohm is one of the ways Olympus DAO maintains liquidity pools within its protocol.
The first step to staking Ohm tokens and enjoying high APY is swapping ETH for Ohm tokens. To do this, log in to your Binance account or any other CEX. Buy Ethereum and transfer them to your non-custodial wallet like Metamask.
Once the ETH is in your wallet, swap them for Ohm tokens on a preferred DEX like Uniswap or Sushiswap. Then, stake Ohm tokens on the Olympus DAO staking platform.
Here’s a step-by-step guide on staking your Ohms tokens:
- Log in/sign up to Binance
- Buy ETH
- Transfer ETH to crypto wallet
- Visit a preferred DEX
- Swap ETH for Ohm tokens
- Connect your wallet to the Olympus DAO staking platform
- Stake Ohm tokens
Log in/sign up to Binance
To get started, go to www.binance.com on your web browser. On the homepage, click on LOG IN from the top left corner to access your account.
On the log-in page, enter your email address/phone number. Click NEXT and input your password. Finally, complete 2FA authentication with the six-digit verification code sent to your email address.
Alternatively, you can click REGISTER/GET STARTED on the homepage to register a new account.
To do this, input your email address and preferred password in their respective fields. Verify your email address by inputting the six-digit verification code sent to your email address.
Once you’re done, go to ACCOUNT SETTINGS and complete KYC verification by submitting a clear copy of your government-issued ID card and utility bill.
Buy ETH
After signing in, click BUY CRYPTO from the top right corner of the homepage and select a preferred payment method.
On the BUY CRYPTO page, input the amount you want to spend and choose ETH as the token you want to buy. Then, tap CONTINUE.
Confirm your payment method on the summary page and input your payment details. Ensure you double-check all the details before approving the transaction.
Finally, complete 2FA verifications to approve the transaction.
Transfer ETH to a crypto wallet
After funding your wallet with ETH, click on WALLET > FIAT AND SPOT from the top right corner of the home screen. This way, you’ll be able to view and transfer the ETH balance to your Metamask wallet.
In your wallet, click WITHDRAW and select ETH as the coin you want to withdraw.
In the next field labeled ADDRESS, input your Metamask wallet address and select Ethereum as the network. Finally, input the withdrawal amount and click on WITHDRAW.
Approve the transaction by completing 2FA verifications.
Visit a preferred DEX
The transfer takes up to 5 minutes but might take longer in cases of network congestion.
Once the ETH is reflected in your Metamask wallet, visit Uniswap DEX at app.uniswap.org on your web browser.
On the top left corner, click on CONNECT to link your Metamask wallet. Approve the connection prompt that pops up in your Metamask wallet.
Swap ETH for Ohm tokens
In the swap page, select ETH as the payment token in the first field and OHM as the token you want to receive.
Input the swap amount and click on SWAP. Approve the transaction by confirming the token approval prompt in your wallet. Voila! You’ve swapped your ETH for OHM.
Connect your wallet to the Olympus DAO staking platform
After funding your wallet with OHM, go to the Olympus DAO staking platform at app.olympusdao.finance/#/stake.
On the top right corner, click CONNECT WALLET to link your crypto wallet to the staking platform.
Select your preferred wallet and approve the connection in the prompt that pops up in your wallet.
Stake Ohm tokens
To start staking, click on APPROVE from the staking page for Olympus DAO to access your OHM tokens.
Input the amount of OHM you’d like to stake and click on STAKE.
Approve the transaction in the token approval prompt that pops up in your wallet, and that’s all.
Calculating Ohm Staking Reward
When you stake your OHM tokens, you earn rebase rewards calculated with the Rebase Rates. Your reward from staking Ohm automatically accumulates based on the value of Ohm. Therefore, Ohm’s staking reward usually fluctuates to complement the token’s price.
The rebase rate determines your Annual Percentage Yield.
Summarily, Rebase Rate = Total number of distributed Ohm tokens/total number of stake tokens
Is OHM Staking a Good Investment?
Staking the OHM token is a good investment because Olympus DAO has so much potential with its revolutionary DeFi visions and missions.
However, since its launch, the OHM token has lost much of its value to the bearish market condition. At its peak, the OHM token was worth $ 1,500 but saw massive sell-offs after users realized life-changing profits.
Consequently, the OHM token price dropped drastically. Meanwhile, Version 1 of the token is performing fine, and only time will tell whether Ohm and Olympus DAO is worth long-term investment.
However, Olympus DAO has accumulated more than $4.5 billion worth of crypto assets since its launch. The DAO has inspired the development of many other protocols with the same mechanism.
This suggests the success of Olympus DAO’s ideas and a high confidence in its users and the general public. Meanwhile, it has not recorded any breach or hack to date.
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