THELOGICALINDIAN - The amount of OlympusDAOs OHM badge is demography a dive
The amount of OHM, the algebraic badge launched by OlympusDAO, has alone 30% today. Protocols that chase a agnate tokenomic archetypal to OlympusDAO accept additionally registered agnate losses.
OlympusDAO Token Drops
The OHM badge has suffered one of its best acute amount hits in a distinct day.
Around 01:55 am UTC today, an alien user awash 82,526 OHM tokens account $11.3 million. That distinct transaction is believed to accept acquired a snowball aftereffect on the OHM token’s price, causing it to abatement over 35% in beneath than an hour.
According to abstracts from CoinGecko, the OHM token’s amount fell from $186.61 to $104.60 Monday morning. The dump from an “OHM whale” triggered a alternation of liquidations on lending platforms including, Rari Capital’s Fuse, that added affronted the amount crash.
The self-stated ambition of OlympusDAO is to actualize a abiding abundance of amount that is not called to the dollar, as is the case with stablecoins. However, the amount activity of the protocol’s OHM badge paints a altered picture. Currently, OHM sits at $127.70 per token, bottomward 30% on the day. Furthermore, the badge is trading almost 90% beneath its best aerial amount of $1,415.26 recorded in April of aftermost year.
OlympusDAO was started by an bearding developer, Zeus, to abate DeFi’s assurance on fiat-pegged stablecoins like USDC and USDT. The activity uses bonding and staking to aback the minting and built-in amount of its OHM tokens. The agreement has affected the (3, 3) meme, a advertence to the project’s declared bold approach archetypal area the best benign aftereffect is accomplished if all holders pale their OHM tokens.
Users are incentivized with boundless staking yields paid in OHM tokens to accord to the protocol’s clamminess reserves. Over the aftermost ten months, OlympusDAO has generated a huge treasury amount from assets such as FRAX and ETH, as able-bodied as from stablecoins DAI and LUSD. Currently, the bazaar amount of OlympusDAO’s treasury assets totals $559 million. Meanwhile, the bazaar cap of OHM tokens is about bifold that, sitting at $1.099 billion.
Per data provided by OlympusDAO, OHM’s amount of $127.7 is backed by $74.50 in treasury assets endemic by the protocol. The abundant aberration in these two prices shows that OHM is trading at a exceptional over its fair value, primarily due to the staking incentives and bold approach anatomy of the protocol.
OlympusDAO currently pays a 3,666% anniversary allotment crop for staking OHM tokens. While the aerial APYs accept formed in OlympusDAO’s favor in bullish markets, the dilutive aftereffect of arising so abounding tokens appears to be hitting adamantine back markets angry bearish in mid-November.
Many of OlympusDAO’s copycat projects accept additionally registered agnate losses. Wonderland, an Avalanche-based angle of OHM, is currently trading at $1,527, bottomward 23.5% over the aftermost 24 hours. Meanwhile, added protocols with agnate tokenomic structures–KlimaDAO and Redacted Cartel–have additionally absent 26% and 29% of their amount on the day respectively.
Disclosure: At the time of writing, the columnist of this allotment endemic ETH and added cryptocurrencies.
