Agora Insights — Olympus Community Weekly Newsletter — Monday 14 March 2022

Olympus Agora

5 min readMar 15, 2022

What’s Up, Ohmies!!

Welcome back to the Agora Insights — our data-driven newsletter — made by Ohmies, for Ohmies!

Summary

Editorial — Silver Linings
Numbers at a Glance — Risk-Free Value Providing Ballast to the Treasury, OHM Backing approaches 90%

Editorial — Silver Linings

During the recent drawdown (beginning in December of last year), OHM has seen a decline in Market Cap of over 90%, bringing the protocol back to levels not seen since August of 2021. During this time, the Olympus Treasury also experienced a large drawdown, falling approximately 56% from its all-time high.

OHM now trades at only a small premium to Total Treasury assets (~14%), and Risk-Free Value assets (stablecoins within the Treasury such as DAI) have gone from making up less than 10% of Treasury assets to over 64% of Treasury assets. Regardless of your feelings on Olympus in general, this marks a significant de-risk of the Treasury and a very strong base on which to build on from here.

On top of that, the Treasury team has been hard at work deploying a large portion of the stable assets into yield strategies that will continue to build the Risk-free Reserves of the Treasury.

With Inverse Bonds a new tool for the Policy and more exciting initiatives on the horizon, now is not the time we would be dumping our OHM stacks (NFA/DYOR as always Ohmies).

Numbers at a Glance — Risk-Free Value Providing Ballast to the Treasury, OHM Backing approaches 90%

As we do each week, we returned to Delphi to gather up the latest protocol data and metrics.

You can access all of the enclosed charts and data at these wonderful Olympus Dune Analytics pages:

Please read on for this week’s numbers at a glance:

1. A Peek Around The Cryptoverse

1. OHM Backing: $24.96 per OHM (Current OHM Price: $28.74)

The total backing per OHM shows the amount of Treasury assets per OHM token. Currently, 88% of each OHM is backed by the Treasury.

Other Metrics:

Liquid backing per OHM: $22.62 (excludes locked tokens)
Risk-free backing per OHM: $18.73 (excludes all non-stablecoins assets)

2. Market Value of Treasury Assets: $387,095,186

7-day change: -34,905,505 (-8.2%)
30-day change: -$95,849,667 (-19.8%)

The Market Value of Treasury Assets shows the current market rate of all of the assets held within the Treasury. This value will be more volatile than Treasury Risk Free Value as it encompasses all assets in the treasury and not solely stablecoins.

3. Risk Free Value of Treasury Assets: $249,315,184

7-day change: -$86,927 (-0.1%)
30-day change: +$8,596,342 (+3.6%)
3-month change: +$59,763,266 (+31.5%)

As a reminder, when the supply growth of OHM outpaces the revenue inflow, RFV per OHM will drop — this is part of the motivation behind OIP-18 & the recently passed OIP-63 as covered in the December 22nd edition of the newsletter.

OIP-18 Framework

4. Olympus Pro Treasury: $1,772,772

7-day change: -$197,330 (-10.0%)
30-day change: -$40,908 (-2.2%)
7-day revenue: $89,920 (annualized: $4,675,840)
Current Olympus Pro Partners: 38
The Olympus Pro Treasury holds the tokens of partner protocols that are utilizing the Olympus Pro platform. The tokens are generated via a 3.3% fee charged for use of the platform.

5. Number of Ohmies: 83,913

26 February: 84,985
5 March: 84,494
14 March: 83,913

7. Current Runway: 596 days

At the current reward rate of 0.1587%, Olympus can continue to distribute OHM rewards for 596 days even if it stops bringing in revenue. That’s over a year and a half!

8. Current Index: 98.132 OHM || Index Adjusted Price: $2,820.31

The Current Index measures your current OHM balance if you had one OHM staked since the first epoch. Index Adjusted Price (the price of gOHM) measures Current OHM Price multiplied by the Current Index.

The following table compares the difference in your current OHM balance based on your staking date:

The price of OHM on 15 June was about $204.28. If you staked one OHM since then, your stack would now be 23.092 OHM! OHM’s price today is around $28.74. Let’s find out what your ROI is:

Principal: $204.28
Value on 14 March: 23.092 * $28.74 = $663.68
Principal gain = $663.68 — $204.28 = +$459.40
ROI = ($459.40 / $204.28)*100% = +224.8%

Investing in OHM back in the middle of June would give you more than a 2.2x return today, even with the major retrace. The lesson here: DO NOT underestimate the power of compounding.

Opportunities to contribute — Join Us!

To get involved with what is happening atop Mount Olympus, join the DAO Discord.

Once you are in, head to the #dao-start-here channel and read the instruction carefully so that you can get assigned a role.

Have any questions? Just ask in the #general-dao channel and a helpful Ohmie will appear to guide you along your path.

Keep it (3,3), till next week Ohmies — with love from the Olympus Agora team.