OlympusDAO plans to establish OHM as a liquid asset within Balancer’s network, with CopperLaunch and PrimeDAO assisting.
OlympusDAO, a decentralized financial system, cooperated with Balancer to establish OHM as a liquid asset within the latter’s network. As a result, CopperLaunch and PrimeDAO will make the front end of Liquidity Bootstrapping Pools (LBPs) easier by including OHM as a collateral token.
The Project’s Specifics
OlympusDAO, the decentralized reserve currency protocol, would first deploy $50 million in liquidity to the Balancer Protocol. The initiative’s structure focuses on providing access to OHM via DAI and WETH (wrapped ETH), with the major purpose of the partnership being to reduce the price effect. As a result, it was decided that the greatest alternative to provide to the Olympus community would be an OHM/ETH/DAI – 50/25/25 Pool.
The maximum treasury allotment will be $25 million OHM, $12.5 million DAI, and $12.5 million ETH. By producing trading fees and complementing the value of the process, the Balancer liquidity pool should improve the network effects of OHM.
The combined program will rely heavily on Balancer. Its multi-token capability and flexibility could help to reduce liquidity fragmentation. According to the document, OHM liquidity can be aggregated with both exchange assets (WETH and DAI) on Balancer, resulting in a potential 25% price impact improvement over fragmenting liquidity across two separate pools of OHM-DAI and OHM-WETH.
CopperLaunch and PrimeDao are also important participants since they may pave the path for future token developments.
Establishing OHM as a liquid asset on Balancer’s ecosystem results in an LBP financing scheme, which supports the OlympusDao network tremendously. In addition, approved DeFi protocol users would be able to lend OHM through it.
Finally, the partnership is intended to contribute positively to the DeFi ecosystem. Consequently, one might conduct balanced transactions and create pools of several tokens that function as a personal index.