Olympus To Purchase More Ethereum to Support OHM Tokens

According to reports, the decentralized storage project Olympus will purchase more Ethereum to support its OHM tokens after members approve the new reserve vault framework on Friday. According to the proposal, approximately $16 million in DAI and $20 million in ETH are currently deployed in the POL pool. Although the finance team recognizes the importance of fund pooling, it suggests reducing the OHM/ETH fund pool by $10 million (and potentially increasing the OHM/DAI fund pool) and increasing the funds available for LSD or other ETH opportunities. ETH liquidity can be supplemented through BLE treasury and/or other third-party liquidity. Olympus Finance team’s anonymous analyst Relwyn stated that its goal is to have 75% stable currency and 25% targeted exposure. A slight increase in ETH exposure is a step in this direction, while not compromising the relative stability supported by OHM in the short term.

Olympus DAO community votes to purchase more ETHs to support OHM tokens

As the decentralized storage project Olympus moves forward, members have recently approved a new reserve vault framework. This has led to the decision to purchase more Ethereum in order to support OHM tokens. In this article, we’ll explore the details of the proposal and what it means for the future of this exciting project.

Table of Contents

– Introduction
– The New Reserve Vault Framework
– The Current POL Pool
– The Proposed Changes
– Reducing the OHM/ETH Fund Pool
– Increasing Funds for LSD and Other ETH Opportunities
– The Anonymous Analyst Relwyn’s Opinion
– Conclusion
– FAQs

The New Reserve Vault Framework

As mentioned, members of Olympus have approved a new reserve vault framework. This framework will allow for more flexibility and control over how funds are deployed. The finance team at Olympus recognizes the importance of fund pooling and wants to improve their portfolio.

The Current POL Pool

Currently, approximately $16 million in DAI and $20 million in ETH are deployed in the POL pool. This pool mainly consists of OHM/ETH and OHM/DAI Fund pools. However, the finance team believes that changes are necessary to improve their portfolio.

The Proposed Changes

The proposal suggests reducing the OHM/ETH fund pool by $10 million and potentially increasing the OHM/DAI fund pool. The aim is to increase funds that will be available for LSD or other ETH opportunities. This will help supplement ETH liquidity through BLE treasury and/or other third-party liquidity.

Reducing the OHM/ETH Fund Pool

Reducing the OHM/ETH fund pool will help to reduce the risk of holding too much ETH, which is a volatile asset. A slight increase in ETH exposure is a step towards the Olympus finance team’s goal of having a 75% stable currency and a 25% targeted exposure.

Increasing Funds for LSD and Other ETH Opportunities

The proposal also aims to increase funds available for LSD or other ETH opportunities. This will help Olympus diversify its portfolio and potentially generate more income from other Ethereum-based opportunities.

The Anonymous Analyst Relwyn’s Opinion

According to the anonymous analyst Relwyn, the finance team’s proposal is a positive and necessary move forward. It allows Olympus to decrease exposure to volatile assets and increase exposure to more stable currencies. This is a step towards creating a more balanced portfolio, without compromising on the relative stability provided by OHM.

Conclusion

The decision of the Olympus team to purchase more Ethereum is a strategic move aimed at improving their portfolio. It demonstrates the team’s commitment to creating a balanced portfolio while also reducing the risk of holding too much ETH. The new reserve vault framework will provide flexibility and control, ensuring that Olympus can quickly adapt to market changes and explore new opportunities.

FAQs

1. What is Olympus?
Olympus is a decentralized storage project that seeks to create a more sustainable and decentralized form of digital storage compared to centralized storage platforms.
2. What is OHM?
OHM is Olympus’s main cryptocurrency token that is used as a form of payment and store of value in the Olympus ecosystem.
3. Why is the decision to purchase more Ethereum significant?
The decision to purchase more Ethereum is significant because it shows that the Olympus finance team is willing to explore new opportunities and diversify its portfolio while also reducing risk. It is a strategic move that shows their commitment to creating a balanced portfolio.