Agora Insights — Olympus Community Weekly Newsletter — Saturday 5 March 2022
What’s Up, Ohmies!!
Welcome back to the Agora Insights — our data-driven newsletter — made by Ohmies, for Ohmies!
- Editorial — Absorbing Volatility with Inverse Bonds
- Numbers at a Glance — Volatility continues, RFV approaching $250 million, OHM backing reaches 86%
Editorial — Absorbing Volatility with Inverse Bonds
Following the passing of OIP-76, Inverse Bonds are a new tool in the Policy team’s toolbox to increase OHM’s liquid backing and absorb volatility if the price of OHM falls below backing. Here are a few FAQ’s to help explain:
What are Inverse Bonds?
Inverse Bonds are exactly what they sound like — bonds, but inverted. Where traditional OHM bonds allow Ohmies to exchange non-OHM assets (such as DAI) for OHM, Inverse bonds would allow Ohmies to exchange their OHM (at a premium) for assets within the Treasury.
What are the benefits of Inverse Bonds?
Inverse Bonds are designed to reduce OHM sell pressure and ensure that OHM backing is always able to increase.
When would Inverse Bonds become available?
Inverse Bonds will be activated if OHM begins to trade ~5% below liquid backing, at which point Inverse Bonding will be activated and available to OHM holders.
To illustrate this concept, here is a hypothetical scenario:
OHM price is at $100, Backing is at $120. You see that the inverse bond price has ticked up to a 5% premium. That means you will be able to sell your OHM at $105 to the treasury, instead of $100 to the market. The inverse bond price would not be able to exceed $120, because at that point it’s a net drain on the treasury.
In short, Inverse Bonds are another Olympus innovation that will allow the protocol to utilize the power of the Treasury to stabilize and benefit OHM regardless of market conditions.
Numbers at a Glance — Volatility continues, RFV approaching $250 million, OHM 86% backed
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:
- Shadow’s OG Olympus Dashboard
- Fluidsonic’s Olympus Lookout Dashboard
- Edgecaser’s Olympus Give Dashboard
Please read on for this week’s numbers at a glance:
1. A Peek Around The Cryptoverse:
1. OHM Backing: $29.64 per OHM (Current OHM Price: $34.56)
The total backing per OHM shows the amount of Treasury assets per OHM token. Currently, 86% of each OHM is backed by the Treasury.
2. Market Value of Treasury Assets: $422,000,691
- 7-day change: -30,002,323 (-6.6%)
- 30-day change: -$58,527,779 (-12.1%)
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: $249,402,111
- 7-day change: +$4,645,323 (+1.9%)
- 30-day change: +$14,638,039 (+6.2%)
- 3-month change: +$65,316,696 (+35.5%)
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.
4. Olympus Pro Treasury: $1,970,102
- 7-day change: -$88,373 (-4.3%)
- 30-day change: +$169,899 (+9.4%)
- 7-day revenue: $108,772 (annualized: $5,656,144)
- 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: 84,494
- 19 February: 85,361
- 26 February: 84,985
- 5 March: 84,494
7. Current Runway: 618 days
At the current reward rate of 0.1587%, Olympus can continue to distribute OHM rewards for 618 days even if it stops bringing in revenue. That’s over a year and a half!
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.