Olympus DAO is a decentralised autonomous organisation that pioneered the protocol-owned-liquidity model and the OHM reserve-currency token backed by a treasury of assets. It introduced bonding, where users sell assets to the protocol for discounted tokens, and staking rewards, aiming to build a community-owned treasury rather than relying on rented liquidity. It became a widely studied and forked template in decentralised finance.
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- Its mechanism combined bonding to acquire reserve assets with high staking yields to incentivise holding, while governance controlled treasury policy. The model demonstrated both the appeal of protocol-owned liquidity and the fragility of reflexive, high-emission token economies, influencing subsequent designs and cautionary analyses of sustainable tokenomics.