To understand RomeDAO, you must first understand the project that it descends from. This is Olympus DAO, an Ethereum-based algorithmic stablecoin solution. Importantly, it’s backed by both a treasury and bond-issuing system.
The idea is brilliant in its simplicity. A treasury filled with DAI and other crypto assets backs OHM, Olympus DAO’s stablecoin. And the platform’s algorithm works to keep the value of one OHM equal to one DAI.
If the value of OHM drops below DAI, the algorithm buys back OHM on the open market and burns it. When the opposite happens, it mints new OHM and sells it on the open market. This process keeps the price of OHM stable. And: Its value never exceeds or falls below the total value of the assets in the treasury.
But what’s unique about it is that the platform itself – not its developers – owns all the assets. As a result, the system remains transparent. Platforms like this delivers value for users and investors equally. Importantly, no central authority can manipulate things behind the scenes.
RomeDAO, for its part, takes the same base approach. But its stated goal is to serve as a reserve currency within the Kusama/Polkadot ecosystem. And that’s a big deal. Why? Because that ecosystem gives RomeDAO and its ROME currency exceptional reach in the crypto world.
