OlympusDAO — Frequently Asked Questions

OlympusDAO (OlympusDAO) is a decentralized reserve currency protocol built on Ethereum. The protocol centers around OHM, a token that is backed by a basket of assets held in the Olympus Treasury. Unlike stablecoins pegged to fiat, OHM is designed to be a free-floating reserve currency whose value is underpinned by real on-chain assets.

The core mechanism works as follows: the Olympus Treasury accumulates assets such as USDS, DAI, and liquidity-provider tokens. For every OHM minted, the Treasury must hold a minimum amount of backing. This backing creates a price floor, giving OHM intrinsic value regardless of market sentiment.

Holders can participate in the protocol through gOHM (governance OHM), which is used as collateral for Cooler Loans and as a governance token, allowing the community to vote on protocol upgrades and treasury management decisions.

OHM is the base token of the OlympusDAO protocol. It is the unit of account for the treasury and is used in all protocol calculations.

gOHM (Governance OHM) is a wrapped, index-adjusted version of sOHM (staked OHM). One gOHM represents a growing quantity of OHM over time, meaning its price naturally appreciates as the protocol index grows. Key characteristics of gOHM include:

• It is used as collateral for Cooler Loans, allowing you to borrow USDS without selling your position.
• It carries governance voting power within the OlympusDAO DAO.
• It can be bridged to other networks, making it portable across the DeFi ecosystem.
• Its value reflects accumulated staking rewards since gOHM was introduced.

If you hold sOHM, you can wrap it into gOHM at any time through the OlympusDAO app under the Utility section.

To use the OlympusDAO application, you need a compatible Web3 wallet. The protocol supports a wide range of wallets including MetaMask, WalletConnect-compatible wallets, Coinbase Wallet, and Rainbow.

Steps to connect:

• Click the "Connect Wallet" button in the top-right corner of the app.
• Select your preferred wallet provider from the modal.
• Approve the connection request in your wallet extension or mobile app.
• Once connected, you will see your balances and be able to interact with Cooler Loans, governance, and other protocol features.

Make sure your wallet is set to the Ethereum Mainnet for full protocol access. Some features like bridging require switching to supported Layer 2 networks.

Cooler Loans is a flagship lending product of OlympusDAO that allows gOHM holders to borrow USDS directly from the Olympus Treasury, using their gOHM as collateral. Key features include:

• Fixed borrow rate: 0.5% annualized interest, one of the most competitive rates in DeFi.
• No liquidation risk from price volatility: Loans are structured so that as long as you repay on schedule, your collateral is safe.
• Borrow capacity: Currently approximately 2,987 USDS per gOHM deposited.
• Treasury-backed: Funds come directly from the Olympus Treasury reserve, making the facility extremely reliable.

To borrow, navigate to Cooler Loans in the sidebar, connect your wallet, choose the amount of gOHM to deposit as collateral, and specify the USDS amount you wish to borrow. Review the loan terms and confirm the transaction.

You can repay at any time before the loan expiry. Repaying restores your gOHM collateral in full.

If a Cooler Loan reaches its maturity date without being repaid, the protocol may claim the gOHM collateral to recover the outstanding USDS debt. However, OlympusDAO provides clear notification mechanisms and you can always repay or roll over the loan before expiry.

Important things to keep in mind:

• Monitor your loan expiry dates in the Your Positions tab within Cooler Loans.
• Partial repayments are allowed — you can reduce your outstanding balance at any time.
• Rolling over a loan (extending its term) is available and only requires paying the accrued interest.
• Unlike most DeFi lending protocols, Cooler Loans do not liquidate based on OHM or gOHM price drops — only non-payment triggers collateral seizure.

Always maintain enough USDS liquidity to service your loan if you wish to retain your gOHM position.

The borrow capacity per gOHM is set by the OlympusDAO protocol and reflects the treasury-backed value. As of the current configuration:

• Borrow per gOHM: ~2,987.47 USDS
• Total capacity remaining: ~4,475,614 USDS
• Borrow rate: 0.5% per year

The total you can borrow is determined by the number of gOHM tokens you hold and the current borrow-per-gOHM ratio set by governance. This ratio is reviewed periodically and updated through on-chain governance votes.

Note that the total facility capacity is limited by treasury reserves. If the remaining capacity is lower than your desired loan amount, you may need to wait for capacity to be replenished or borrow a smaller amount.

The OlympusDAO Treasury is the protocol's most critical component. It holds the reserve assets that back every OHM in circulation and funds protocol operations including Cooler Loans.

The treasury accumulates assets through several mechanisms:

• Bond sales: The protocol historically sold bonds, receiving assets like USDS, DAI, and LP tokens in exchange for discounted OHM.
• Protocol-owned liquidity (POL): OlympusDAO owns a large portion of its own liquidity, generating trading fees that accrue to the treasury.
• Yield from deployments: Treasury assets are deployed in safe yield-generating strategies to grow reserves over time.
• Loan interest: The 0.5% interest from Cooler Loans flows back into the treasury.

The treasury's health is tracked via the Protocol Metrics dashboard in the OlympusDAO app, showing key figures like Risk-Free Value (RFV), total assets, and OHM backing per token.

OlympusDAO operates as a decentralized autonomous organization (DAO), meaning token holders shape the direction of the protocol through on-chain and off-chain governance.

Key governance aspects:

• Voting power: gOHM holders vote on governance proposals. The more gOHM you hold, the greater your voting weight.
• Forum discussions: Major proposals begin as open discussions on the Olympus Forum before moving to on-chain votes.
• On-chain execution: Approved proposals are implemented via the Govern section of the app, using a timelock and multisig structure for security.
• Emission Manager: The protocol includes a dedicated Emission Manager tool, allowing governance to fine-tune OHM supply parameters.

Active community participation is encouraged. Holding gOHM gives you a direct voice in treasury management, product development priorities, and protocol parameter changes.

Security is a top priority for OlympusDAO. The protocol's smart contracts have been audited by multiple independent security firms, and the codebase is fully open-source on GitHub.

Additional security measures include:

• Bug Bounty Program: OlympusDAO maintains an active bug bounty on Immunefi with rewards for responsibly disclosed vulnerabilities.
• Timelock mechanisms: Governance changes require a waiting period before execution, providing time for community review.
• Multisig treasury control: Treasury funds are protected by a multi-signature wallet requiring multiple signers for transactions.
• Conservative treasury strategy: Assets are deployed only in battle-tested, low-risk protocols to protect backing value.

While no protocol can be considered entirely risk-free, OlympusDAO follows industry best practices and maintains transparency through public dashboards and open governance.

The Emission Manager is a governance-controlled tool within the OlympusDAO protocol that regulates the rate at which new OHM tokens are minted and distributed.

Its main functions include:

• Setting and adjusting OHM emission rates based on market conditions and treasury growth.
• Ensuring that new supply issuance is sustainable and treasury-backed.
• Allowing governance to fine-tune the balance between supply expansion and backing per token.
• Supporting the protocol's transition toward a leaner, more efficient supply model.

Changes to emission parameters require a governance vote, ensuring that the community has full control over monetary policy. You can view and interact with emission settings through the Emission Manager link in the OlympusDAO app sidebar.

OlympusDAO supports bridging of gOHM tokens to other EVM-compatible networks, extending the token's utility across the broader DeFi ecosystem.

To bridge gOHM:

• Navigate to the Bridge section in the OlympusDAO app sidebar.
• Select the destination network you wish to bridge to.
• Enter the amount of gOHM to bridge and confirm the transaction.
• Allow time for the bridge to process — cross-chain transfers may take several minutes depending on the destination network.

Bridged gOHM retains its index-adjusted value, meaning its intrinsic backing from the OlympusDAO treasury is preserved regardless of which chain it resides on. Always verify the bridge contract addresses from official OlympusDAO documentation before proceeding.

Convertible Deposits is a specialized product available through the OlympusDAO ecosystem at deposit.olympusdao.finance. It allows users to deposit assets and receive OHM-denominated instruments with predefined conversion terms.

Key characteristics:

• Users deposit stablecoins or other assets and receive a convertible position.
• The position can be converted to OHM at a set strike price at or before maturity.
• If OHM trades above the strike price at maturity, conversion is advantageous. If not, the deposit is returned.
• This product provides the treasury with a capital-efficient way to raise backing assets while offering depositors upside exposure to OHM.

Convertible Deposits are an advanced product intended for participants who understand options-like mechanics. Review the full terms on the dedicated deposit portal before participating.