In this article, you will learn what is Olympus DAO staking. Staking is a long-term strategy that rewards OHM to users when staking on the Olympus website. The reward rate can be varied depending on the number of OHM staked in the protocol.
What is Olympus DAO Staking?
On Olympus DAO, users can participate in two main strategies which are staking and bonding. They are all attached to the OHM token, enhancing its use case.
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 utilizes game theory to try and ensure that as the protocol continues to grow, stakers continue to earn high yield.
Where to Stake Olympus DAO?
The only place to safely stake OHM tokens is directly through the Olympus DAO app. Avoid using any other platforms as they may have smart-contract risks that could make you lose your funds.
Every 8 hours the Olympus protocol distributes tokens by sending them to the staking contract, without asking for sOHM back. This then increases the ratio of OHM staked to sOHM outstanding and results in a rebase to correct the difference.
Rebases occur retroactively, meaning that it happens 8 hours after profit has been generated. This delay means that users can see what APY they will receive at the end of the next 8-hour window. With this delay, users can see what rewards they are set to receive.
Is Staking Olympus DAO Safe and Secure?
By November 2021. Olympus DAO has been running normally with no notable attacks or security issues. Over the course of this time, Olympus DAO development has accumulated assets worth US$4.45 billion and sparked multiple forks with a high level of investor confidence.
It is managed by a fairly visible and active group of Olympus DAO developers that constantly work with the local community to improve the protocol. Although Olympus does not currently have any clear red flags, you should never invest more money than you can afford to lose in cryptocurrency.
Advantage:
High-quality return for investors.
Treasury funds are multiplied three times, accelerating the growth of the asset pool.
Robust community and engagement.
Returns vary widely and are occasionally high.
Bottom Line
Over 90% of the OHM total supply has been staked since Apr 2021. indicating that the majority of users are playing the game theory with mutual benefits. This enhances the long-term growth of the Olympus platform.This article is about what is Olympus DAO staking.
