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Olympus DAO first introduced the concept of Protocol Owned Liquidity (POL), and the treasury operated by a Decentralized Autonomous Organization (DAO) guarantees the value of its own token, OHM. Since OHM tokens must be backed by at least $1 in value, no new tokens will be issued unless the assets owned by the treasury increase. If the price of OHM tokens drops below $1, the protocol buys and burns OHM to hit $1.
Olympus DAO's treasury is run by DAO, a decentralized autonomous organization. Governance of the DAO, including policies related to the treasury, is done by voting by OHM token holders. Since DAO is managed based on smart contract, it can be operated transparently and is not affected by external factors. In addition, the treasury is protected from hacking with 4-of-7 multi-signature.
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IEEE/ICACT20230040 Slide.07
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