Olympus DAO is a community-owned decentralized reserve currency that historically provides an extremely high yield rate, with APY of up to 8,000% not uncommon. Olympus DAO operates a treasury that is made up of other cryptocurrencies such as ETH and DAI, which are used to support the value of the OHM token. The aim is to have OHM become the underlying currency for all DeFi products going forward, similar to a global reserve currency, like US dollars.
How to Stake Olympus DAO? What is Staking in Olympus DAO? Let's read on and find the answer.
How to Stake Olympus DAO?
The most common way to purchase OHM is through a decentralised exchange (DEX), although some centralised exchanges such as Gate.io also offer it. Below are instructions that will show you how to purchase OHM through a DEX and then stake it using the Olympus DAO website.
1. To purchase OHM using a DEX, you will first need something to trade for it, such as ETH.
2. Send ETH to a web 3 wallet, such as Metamask.
If not set up, you can easily set up the Metamask extension here.
3. Swap ETH to OHM on either Uniswap or Sushiswap.
Don't swap all your ETH to OHM, leave some aside for fees.
4. To stake your freshly bought OHM go to the Olympus DAO website, select "Stake" on the left-hand side, then connect your wallet.
5. Once connected, click on the "Approve" button to enable your OHM to be deposited. This will incur a gas fee and may take a few minutes depending on network congestion.
6. Once approval is complete, select how much OHM you would like to stake, then click "Stake". This will also cost gas fees.
Once staked, you will see that you are now the owner of sOHM, which is a 1:1 of OHM. sOHM is a transfer-restricted rebase token, meaning that it cannot be traded or used for anything except holding and receiving rebase rewards. It is a bit like a coupon that entitles you to rewards, but can also be used to redeem your OHM at any time.
What is Staking in Olympus DAO?
Staking is a way to put a cryptocurrency to work and earn rewards while doing so. Staking in Olympus is a profit distribution mechanism. It is designed to be the dominant strategy for participants; to stake, hold and compound.
The primary aim of Olympus is to provide rewards to those who buy-in to OHM (the token of Olympus) and boost the value of the treasury. In doing so, the protocol provides profits equally to all participants. Through sOHM (staked OHM), everyone receives the same percentage profit each rebase, which also allows compounding yield while only needing to hold. This method is known by users as "(3,3)" and utilises game theory to try and ensure that as the protocol continues to grow, stakers continue to earn high yield.
How to Stake Olympus DAO? What is Staking in Olympus DAO? Hope you can get a further understanding of these questions.
