Ponzi is making a comeback after the collapse. Can the OHM team still bring the code of wealth?

Market enthusiasm is still surrounding memes. In just one weekend, the new meme currency YES on Blast triggered FOMO in the community. Even Cinneamhain Ventures partner Adam Cochran (AC) discussed with the community on Discord and read Baseline’s All code.

After Baseline’s predecessor, Jimbos protocol, changed its name last year, it announced that it would be a permissionless algorithmic market maker protocol. The protocol extends POL (Protocol Owned Liquidity) and uses smart contracts to manage token liquidity within a centralized liquidity pool. This market-making mechanism also allows YES to achieve the Ponzi effect of “only rising but not falling”, no liquidation mechanism, and multiple leverage.

The concept of POL originated from Olympus DAO (OHM), and for this reason, many people believe that Baseline has a close connection with the Olympus team. However, Smokey The Bera, the founder of Berachain, intends to distance himself from the relationship between OHM and Baseline. He believes that projects that draw on POL ideas should not be famous for OHM, but should build their own projects in a down-to-earth manner.

But if you pay attention to DeFi, you may notice that in this round of stories, terms such as “former OHM core member” or “former OHM developer” seem to have become the new wealth password.

From the beginning of Ponzi to the collapse of currency prices, the former DeFi 2.0 star OHM

Olympus is a decentralized reserve currency protocol based on OHM tokens. Its vision is to become a new reserve stable currency.

In the DeFi summer at the end of 2020, various decentralized platforms launched “liquidity mining” one after another. Before OHM launched POL, countless projects could not avoid the problem of unstable liquidity, but POL was made through the new pledge and Bond mechanism. When you arrive, you become the master of your own mobility. OHM once held more than 99% of OHM-DAI bond liquidity, which can be said to have led DeFi into the 2.0 era.

Under the different choice games of the two incentive mechanisms of pledge and Bond, OlympusDAO was born with a 3 v3 game model. For the specific principles of this model, please refer to “Interpretation of Ve(3, 3), “Curve+Olympus””. For a time, the first text meme (3, 3) spread all over Twitter and was imitated by countless communities. This set of 3 v3 games also made OHM’s APY reach 70,000%, and spawned a lot of forks on other public chains. “3, 3” also turned into “4, 4” or even “9, 9”, which makes the APY measured in thousands of percent seem insignificant.

Related reading: “APY 70, 000%, DeFi 2.0 dominated by OHM forks”

Ultra-high APY is a natural factor that attracts funds, but it also brings inflationary pressure. Questions about whether OHM is a Ponzi scheme are gradually increasing. In the end, OHM was sold off by a huge amount, causing the price to fall by more than 98%. However, the algorithmic currency that hit the bottom from the high point will find it difficult to return to the original level without the support of the owner behind it.

After the currency price crashed, OlympusDAO lowered OHM’s pledge APY and stated that in the future OlympusDAO will focus on three aspects: stability, sustainability and widespread adoption. In addition, OlympusDAO also changed APY (annualized yield) to BR (basic interest rate), which represents the annual inflation rate of OHM.

In “Can the Algorithmic Stablecoin OlympusDAO Solve the Death Spiral Problem?” "The article explains that the price of OHM does not need to be linked to a specific asset. It uses DAI as a reserve. In theory, one OHM is only backed by one DAI and is worth 1 US dollar. Of course, it is precisely because of its uncertainty that some people regard it as a non-sovereign currency.

Starting from Ponzi, after leading DeFi 2.0 and experiencing the crash, it returned to its original roots and transformed into a reserve stable currency. It seems that OlympusDAO has really completed all its missions and “disappeared” in the bear market.

Encryption projects related to OHM

Although there is little voice from OlympusDAO now, the 3, 3 model and POL mechanism it once promoted have always affected the DeFi field. Just like the popularity of YES, there are still many projects where the shadow of the OHM team can be seen, or based on the Ponzi effect, rhetoric such as “former OHM core members” and “former OHM developers” seem to have become the key to the project’s rise. one of the reasons.

Berachain

Berachain has once again sparked discussions among the crypto community due to its recent launch of its public testnet “Artio”. The extremely cult-style community has made it attract the attention of Degen people in the circle since its launch in late 2021.

According to Berachain co-founder Smokey, the team is a group of early OHM investors who met in the Olympus DAO community. At first, this was just an NFT project among community members. In order to pay tribute to OHM’s Ponzi mechanism, the first NFT was named Bong Bears, and “Bera” was deliberately misspelled to pay tribute to the old crypto meme “Hodl”.

Berachain has now developed into a high-performance EVM-compatible blockchain, built based on the Proof-of-Liquidity (PoL) consensus mechanism, with the goal of strengthening the synergy between Berachain validators and the project ecosystem. Adjust network incentive mechanisms. In addition, Berachain’s technology is based on Polaris, a high-performance modular framework for building EVM-compatible chains on top of the CometBFT consensus engine.

Related reading: “Exploration of New Public Chains: Berachain’s Technology, Community and Ecological Projects”

On April 20, Berachain completed $42 million in financing, led by Polychain Capital, OKX Ventures, Hack VC, Dao 5, Tribe Capital, Shima Capital, Robot Ventures, Goldentree Asset Management, former Dragonfly Capital partner and Celestia founder Mustafa Al -Bassam, Tendermint co-founder Zaki Manian and 20 other DeFi project founders participated in the investment.

Eefi Finance

Eefi Finance is a flexible treasury protocol built on AMPL, which also uses OHM tokens and EEFI to form a trading pair. According to the official website of Eefi Finance, its ecological partners also include OHM, and it is said that there are community members participating.

Elastic Finance launched the income token EEFI, which can amplify and extend income under all market conditions. Its (E, E) game theory is an upgrade of (3, 3) game theory. The total token supply is 170,000, of which 25,000 are allocated to the LBP event, which is hosted in partnership with Olympus DAO and Bond Protocol. According to uniswap data, as of the time of writing, the price of EEFI is $395.86, a 24-hour increase of 35%.

Peapods Finance

Peapods is a decentralized, permissionless, trustless on-chain volatility mining protocol with zero reliance on oracles or external price feeds. Peapods Finance has launched Volatility Farming, a new DeFi model that enables users to take advantage of the volatility of the cryptocurrency market to unlock income opportunities on liquid assets.

Peapods uses OHM instead of DAI as the basic trading pair for all listed tokens. The community also frequently interacts and cooperates. It recently launched Arbitrum and continues to receive support from OHM. According to uniswap data, as of the time of writing, the price of PEAS is US$395.86, with a 24-hour increase of 4.2%.

Peapods Finance enables users to create permissionless weighted and unweighted index positions called “Pods” on Ethereum, making these positions tradable so that anyone can easily gain exposure to popular asset allocations. Users can stake these positions to earn deflationary PEAS tokens, which enable value capture by charging fees for the expansion or contraction of Pods supply, as well as ongoing arbitrage between Pods prices and their underlying assets.

On January 26, Peapods Finance announced that pOHM would be the core integrated part of its new v2 Green Arrow pod, which will fundamentally improve the liquidity mechanism of all Pods. The new pOHM integration provides an option for all Pod products to now use pOHM as a liquid pairing asset. Pods paired with pOHM inherit the superior LP characteristics of OHM beyond anchored assets, including the reduction of impermanent losses (IL) and asset appreciation. The free-floating nature of OHM also provides greater arbitrage opportunities for Pods, thereby enhancing the volatility mining of Pods.