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Blockchain is a distributed ledger technology that shares block data in a distributed environment via peer-to-peer network, so that anyone can read the data but cannot manipulate the data.
Blockchain has the potential to provide a variety of new types of services completely different from existing centralized services because data, services, and decision-making are decentralized in this way. Recently, Decentralized Finance (DeFi), Non-Fungible Token (NFT), and blockchain games are attracting attention.
In this paper, we analyze Olympus DAO, which is attracting attention as an innovative model of DeFi 2.0, in detail. Olympus DAO, an Ethereum-based decentralized reserve currency protocol, has been evaluated as having opened the horizon for DeFi 2.0 by proposing the concept of Protocol Owned Liquidity.
Assets deposited in the Olympus DAO peaked at the end of 2021 at around $880 million. However, as of October 2022, when the cryptocurrency market such as Bitcoin and Ethereum is stagnant, it has fallen sharply to about $269 million.
Due to the large price drop of the OHM token and the unusually high APY, some are even raising suspicions that it is a Ponzi scam. Therefore, in this paper, we try to find meaningful answers to the controversies surrounding Olympus DAO and predict the future prospects of Olympus DAO by analyzing the mechanism and market of Olympus DAO.
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IEEE/ICACT20230040 Slide.03
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