OlympusDAO Moves Liquidity to Balancer Protocol After Whales Depreciate OHM

Decentralized financial reserve protocol, OlympusDAO, recently announced Cooperation with Balancer Protocol.

Olympus, which offers sustainable compounding through its community-owned treasury, recently moved some of its liquidity to one of the leading DeFi protocols.

OHM is moving to the Balancer ecosystem

OlympusDAO will provide $50 million in liquidity, according to Balancer offer Administration.

By migrating some OHM liquidity to the DeFi protocol, users can pool their OHMs on the balancer and participate in Liquidity Bootstrapping Pools (LBPs).

Balancer is an automated portfolio manager, liquidity provider and DEX based on the Ethereum blockchain utilizing programmable liquidity. Compared to products with constant liquidity 50/50, the protocol’s immutable solution allows for custom weights from 1 to 99% on some tokens.

Total value of assets locked in balancer log | Source: Defillama

While the OHM/ETH/DAI – 50/25/25 pool was determined to be the best solution for the Olympus community, the maximum budget allocation would include $25 million for OHM and $12.5 million for DAI and ETH .

According to the announcement, the first iteration will be a 50/50 DAI/ETH implementation.

The balancer liquidity pool set up by Olympus aims to increase the network effect of OHM, generate transaction fees and improve the utility of the liquidity pool.

With a total value of locked assets (TVL) of $3.29 billion, Balancer currently ranks fifth in DeFiLlama’s DEX rankings.

Note that Olympus Pro partners are allowed to use Balancer’s LBP to do the initial fundraising with OHM, while CopperLaunch and PrimeDAO support the UI by adding OHM as a trade/token pair deposit.

“There is an increasing demand for protocols to conduct public auctions of their tokens using OHM, and to date there is not enough OHM liquidity on the balancer protocol to support this form of auction,” said the head of Olympus.

Last sale

Since its launch last year, the decentralized reserve currency has not been tied to any fixed pegs, but the use of reserve assets like DAI to control prices has drawn much criticism from the crypto community.

The skepticism surrounding the protocol mainly revolves around its staking rewards scheme, where the annual rate of return (APY) paid in OHM tokens is incredibly high, currently as high as 3,537%.

As reported by analyst Colin Wu, OHM’s price fell 44% in an hour amid a series of liquidations reported by Cointelegraph. activated by the forest dumping on January 17th.

OHM Price Chart | Source: CoinGecko

Currently, the token is changing hands at $108, down 13% in the last 24 hours.

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