OlympusDAO, a decentralized finance protocol, teamed up with Balancer to create OHM as a liquid asset in the latter’s network. CopperLaunch, PrimeDAO and PrimeDAO will assist the front end Liquidity Bootstrapping Pools’ (LBPs) by adding OHM to their collateral token.
The Details of the Project
According to CryptoPotato’s documents, OlympusDAO, a decentralized reserve currency protocol will initially distribute $50 million in liquidity to Balancer Protocol. While the main goal of the collaboration is to lower the price impact, the structure of the initiative focuses primarily on OHM via DAI (wrapped in ETH) and OHM via OHM via DAI. It was decided that OHM/ETH/DAI 50/25/25/25 pool would be the best option for the Olympus community.
Maximum treasury allocations will not exceed $25,000,000 OHM and $12.5 Million of each DAI or ETH. OHM’s network effects will be enhanced by the Balancer liquidity pool, which generates trading fees and adds utility.
The joint program will require the participation of Balancer. The document states that its multi-token capabilities and flexibility could reduce liquidity fragmentation.
“On Balancer the OHM liquidity may be combined with both exchange assets (WETH or DAI), which can result in a potential 25% increase in price impact, compared to fragmenting liquidity between two separate pools of OHM–DAI and OHM–WETH.”
CopperLaunch, PrimeDao and other key players are also important to the initiative because they can pave the way towards future token projects.
OHM is now a liquid asset in Balancer’s ecosystem. This program provides LBP funding, which greatly benefits the OlympusDao community. It would allow approved DeFi protocol users to borrow OHM.
The collaboration will bring positive additions to DeFi’s ecosystem. One could trade in balance and create pools of tokens that can act as an index.
OlympusDAO, and the Meta Space
Recently, the DeFi protocol partnered with Paragon’s Metaverse project to explore NFT. The latter was OlympusDAO’s first partner in metaverse liquidity.
To bring Ohmies an amazing opportunity, we have partnered up with @ParagonsDAO
Paragons, Olympus’ first partner in metaverse liquidity, launches today. They will be releasing bonds which use their Parallel NFT trading cards as a bond pair with $OHM.https://t.co/JVJVofKXg3 pic.twitter.com/2DnedwdeZM
— OlympusDAO (@OlympusDAO January 17, 2022
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