Olympus DAO Explained: A Beginner’s Guide to OHM Staking
Decentralized currencies, for all matters and purposes, are best described as a flourishing forest in the world of finance. Sure, they are not as singular and mighty as fiat money, but there’s no denying the strength that comes from being part of DeFi.
It’s like an ecosystem of resilient trees that support and protect each other in weathering storms – and offers an alternative to people who are not that keen on taking shelter under just a single canopy.
The Olympus Decentralized Autonomous Organization, or as known in digital spheres as simply Olympus DAO, was formed in March 2021. It launched with a mission of creating its own coin and ecosystem, where users got something akin to stablecoins but without the inclusion of fiat currencies in the equation.
To that effect, it introduced its own token (OHM) through discord and decentralized exchanges, and it’s been a major driving factor for much of what Olympus DAO aims to achieve, including web3 in finance.
Olympus DAO, through OHM and other practices in its economy, aims to address two significant problems that it perceives about stablecoins:
- The volatility associated with stablecoins that are pegged to fiat currency, which might see a dip in value if their values depreciate.
- The presence of Centralized Finance (CeFi) in decentralized crypto economies owing to the influx of stablecoins over the years.
And in order to reach this goal, Olympus DAO has introduced OHM tokens with the goal of being community-owned, asset-backed, and resistant to the ill effects of centralization, censorship, and liquidity problems.
How does Olympus DAO Work?
The OHM coins, which enable Olympus DAO’s majority of functions in the community, are backed by assets that the organization maintains in its treasury.
Although it is not directly linked to any asset, it does, however, see Olympus DAO back up OHM using some decentralized stablecoins, such as DAI and FRAX. This, in turn, enables the organization to use OHM for:
Although it is not directly linked to any asset, it does, however, see Olympus DAO back up OHM using some decentralized stablecoins, such as DAI and FRAX. This, in turn, enables the organization to use OHM for:
1. Governance
People who have bought the Olympus token receive the ability to participate in decision-making within the organization, where they can vote and have a proper say in the proposals that will be enacted or how the project will further develop.
2. Opportunities
The OHM coins enable the community in Olympus DAO with not one but two powerful economic forces that unlock boundless opportunities for profit-seekers: the art of Bonding and the magic of staking.
Newcomers are incentivized to join the ranks of present token holders, who, in turn, have discovered the path to earning, strategizing, and thriving within this innovative ecosystem.
Newcomers are incentivized to join the ranks of present token holders, who, in turn, have discovered the path to earning, strategizing, and thriving within this innovative ecosystem.
3. Stability
The token provides stakeholders and users with an assurance of stability without necessarily being linked directly to stablecoins which it achieves by including both – the backing of the organization’s treasury and partially the trends or forces leading the market.Presently, the balance for the treasury stands at a little over $185 million, with over 120,000 token holders and $20 million in liquidity. And the treasury, in essence, helps maintain how stable OHM remains in response to the demands of the market:
Where similar to blockchain in insurance industry, Olympus DAO alternatively burns its assets or mints OHM tokens when the coins appear to be respectively undervalued or overvalued.
Kickstart your journey: Where to Buy the Olympus Token (OHM)
Now that you know more about the functioning and how Olympus DAO operates, you can look towards beginning your crypto journey with the org. This, however, would require you first to get started with accruing the tokens before you can participate in any of the organization’s other activities.
Here are some steps that should help you clear the basics:
Stage one
If you’re familiar with Binance development, then this should be easy for you – for the first stage, you should make your personal account on a centralized exchange or CEX. For this, you can choose any from among the popular ones, such as Binance, Kraken, or Coinbase – which are commonly used for trading digital currencies.
Once you’ve created your account, you’ll typically go through the motions on this platform, where you will get a password made and other requirements fulfilled.
Stage two
After your account’s operational, you can continue to get your hands on some ETH. Depending on the platform you chose earlier, you would need to head over to the various checks and procedures before finally inputting the amount of Ethereum you would want to purchase.
This process should be completely safe, owing to features such as smart contract security on these platforms, and you should soon receive the ETH that you have bought in the account that you’ve created.
Stage three
For this stage, you’d require a crypto wallet that will enable you to receive and hold the Ethereum that you’ve purchased for future use on Olympus DAO. If you haven’t already got one, we suggest having one made before you reach this stage.
Some popular choices for this include the Exodus wallet, MetaMask, Trust Wallet, etc. Transfer the ETH that you have received in your account on the CEX to this wallet, and make sure to keep the details of your wallet safe on your end.
Stage four
Finally, in the fourth and last stage, you can proceed towards buying the tokens and join the Olympus DAO community. Just head to any decentralized exchange (DEX) such as Sushiswap or Balancer, link your ETH wallet’s address with the platform, and choose the amount you would like to trade for. Once the trade is complete, you have successfully got yourself some Olympus tokens in your wallet.
These are the general steps you want to take if you want to go about your way of buying some OHM coins and, eventually, starting your journey within Olympus DAO. Depending on your requirements, you can then carry on with the other activities or options offered by Olympus – which includes staking your OHM.
Getting Started with OHM Staking in Olympus DAO
One of the most exciting aspects of Olympus DAO that you unlock with the reserves of OHM in your wallet is – OHM staking. It’s a major part of defining what is Olympus DAO to the blockchain community, propelled by a simple process: A user can ‘lock’ up the OHM they own with Olympus DAO and, in turn, receive rewards which are generally more OHM tokens.
This helps both the organization and the user in that it stabilizes the price of OHM and allows users to walk away with more OHM coins than they initially locked up after a period of time has passed. Here are the basics that’ll get you started:
Step A
If you’ve already purchased a share of OHM coins in your wallet, then congrats, you’re halfway there! All you need to do in getting started is to follow the basic safety measures regarding your wallet and hook it up to Olympus DAO by visiting their website and hitting the “Connect Wallet” option present there.
Step B
By choosing to connect your wallet, you’ll be presented with an option to correctly select the wallet you use and then proceed with linking it to Olympus DAO. Follow the steps and provide the necessary details here to complete this stage successfully.
Step C
Once this process is complete, then you can head on to the next, where you will decide on the number of OHM coins that you want to stake and finally send it to the smart contracts provided on Olympus DAO for OHM staking. Owing to smart contract auditing and measures such as a cooling period for staking, you can rest assured that the mechanism is safe from errors and also threats such as flash loan attacks.
Step D
To proceed, you’ll need to select a trusted validator for staking. Pick one from the options offered by Olympus DAO and then head to the next step, where you ‘Approve’ and sign the exchange process by which you’re staking your OHM coins. Click on ‘Stake now’ and then sign off on the transaction at this stage which will begin the staking process.
It’s important to note here that the rewards you get from Olympus DAO for staking your OHM can be redeemed only when you unstake the tokens you initially locked into the contract. There will be a reward period during this entire process, and if you unstake your OHM before the period ends, then you will not receive the awards that have accrued in the time leading up to this stage.
Unlocking Opportunities: Accelerate your Blockchain Success
And there you have it! That’s all there is to staking your OHM coins. Following these steps, you can easily jump into the inside loop of one of Olympus DAO’s most rewarding activities. Pretty soon, you’ll start receiving the rewards you staked your tokens for in the first place. They’ll reflect in your staking balance, which can be accessed via the dashboard for this process on the main website.
This also provides insight into how decentralized apps and exchanges are redefining digital commerce. They are empowering startups and established enterprises alike by removing intermediaries and offering a slew of benefits thanks to smart contracts.
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