Given the recent volatility of OHM and all the buzz about it on crypto twitter I thought that perhaps some of the folks involved in the bankless OHM bonds could share their experiences, clarify the volatility, ROIs, and risks associated with the dao project.
Still can’t find anyone to explain how the Bonds work, ultimate answer is “hey, 20% ROI in 7 days”. I also understand price action and when tokens start just going straight up from launch, well, after they discover their high, they will discover their low. But does the OHM token have anything to do with the bonds?
Share your questions, please share some answers or experiences, this is what makes DeFi fun!!
Sorry Ernest, this probably isnt helpful BUT there’s another concept you should check out called a Certificate of Deposit.
These have fixed rewards. This means that once you lock in, others don’t have any effect on you. In traditional staking your rewards greatly decrease as more people join.
I’ve not touched OHM personally as I’ve never been a fan of protocols like that but this explanation on the bonding process might help: 1, 1 to 3, 3: The Reason to Bond. So you’re looking at OHM, right? You… | by OlympusDAO | Medium
From what I’ve read, there is further trouble ahead for ohm.
As Olympus is constantly buying back $ohm, and as people are trying to cash out before it crashes further, it creates constant reduction of not only the assets backing the protocol (down value) but also downward price pressure from them buying the tokens. It’s become a double sided impact to the value.
It’s been impacting most or all of the ohm forks out there also.
And as $ohm was being valued essentially at $4 for every $1 of asset backing, this could crumble pretty disastrously.
Not FUD, just relaying what I’ve read about the situation.
Not saying it will survive one way or another , but Olympus receives income into its treasury trough various fees, including the bond business. So it relies on more than new depositors .
I have been a holder of ohm since the launch. And still holding and was liquidated out of a rari-fuse (9,9) position this week. Not because I’m some die hard shill believer but because I believe in experimenting. Ohm at $1400 was obviously over priced. They have always maintained that the price will eventually settle around $1. So it’s actually doing what it was supposed to do. Time will tell.
My experience with both Olympus and KLIMADAO has been pretty negative so far, although I have to say that the returns appear to be much higher with the KLIMA fork, having nearly doubled my original investment (in tokens). But of course, with the crashing prices of the underlying asset, everything has been down. Their documentation and explanations are all fairly minimal. Will just have to leave them alone and forget about them now, unlike the early days, when shills were screaming about the 300k% APY
Not related at all.
Consider Olypmuspro bonding a MARKET, between LP tokens and the native token of different DAOs.
In our case, sell LP(BANK/ETH) tokens to the platform, and get the value of the LP tokens in BANK plus additional BANK to a bonus at whatever the percentage is.
That percentage slowly ticks up over time.
Technically the treasury could just sell BANK for eth, but that has a ton of negative downstream impacts.
Using OlympusPRO bonding we provide opportunities to the community and markets and drive BANK velocity.
Super helpful just trying to get some feedback from knowledgeable folk.
Right, this is the ponzi argument, sounds like a tron dapp to me. Creating Tokens based off of percieved value seems risky
Seems like it just benefits wealthy folks on the mainnet, why not just offer members the opportunity to buy bank at a discounted rate over time OTC. I think what is weird is that we are giving governance power to people not obliged to participate in the dao. and in the dao we are pinching pennies to boot strap actual work
The maximum you can get is 130,000 BANK through bonding in one transaction. I think Olympus pro is a win/win situation for the users and the DAO. The user get BANK at a discounted rate and the DAO gets the LP tokens.
It is true that for small amounts of BANK it is not worth it.