Olympus DAO (OHM): OHM Staking Crypto Assets

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Many people have heard about staking their crypto assets, but most do not know how it works. What would it feel like to stake a cryptocurrency? How much Ohm can you earn? Investing in one and sitting if its value goes up, but watching your money and effort grow daily.

One of the most popular investment tools for cryptocurrencies is staking. It involves holding a particular coin in your wallet to gain more coins as time goes by. Furthermore, it is also known as Proof-of-Stake (PoS). Using this method, users can prove their stake in validating transactions as they successfully hold onto their tokens.

Staking can be a very profitable endeavor, so many people choose to participate in the Proof of Stake method. The DAO coin, also known as OHM, is the cryptocurrency used in this process.

A professional investor that knows how to stake OHM, staking rewards, and token compound yields have an edge in this process. However, what if you are a beginner in this field? Is it a good investment for you? Let us find out after reading this article.

Olympus DAO

The Olympus DAO or OHM is an ERC-20 based utility coin issued on the Ethereum main net. It can be staked or traded on existing crypto marketplaces. The protocol will reward holders with treasury revenue, payment for resource contributions, and staking rewards.

Moreover, the Olympus DAO project was launched by Zeus, who wanted to create an entity wherein all the users could have equal rights and authority over their investments. This project aims to generate profit utilizing staking a crypto asset. An OHM token investor will receive a share of the earnings based on their contributions.

How to earn with Olympus DAO

If you are a business-minded individual or investor who wants to earn by holding some stable digital assets, it might be the right choice.

It aims to allow users to enjoy a decentralized and transparent investment network built upon the blockchain. It uses unique approaches toward changing how we invest and trade our assets. OHM is a PoS cryptocurrency with a compounding interest block rewards system.

In addition, Olympus provides two ways to profit from a digital asset. The first is staking OHM tokens, and the second is OHM bonding. Here are some overviews of those two processes to help you understand them better.

Staking OHM Token

DAO is a decentralized application (DApp) that allows users to stake OHM for a chance to win rewards. The staking OHM token period lasts for 24 hours, and the user who stakes the most OHM during the period is awarded a bonus pool of tokens at the end of that period.

For every OHM transaction, 5% of the gas fee goes into the bonus pool will add. Additionally, users need to convert their tokens into DAO’s smart contract for staking OHM. A staking contract is a smart-contract system.

It increases the Olympus project’s reliability and sends transactions to increase their stake. They can withdraw their OHM stake.

The main goal of Olympus is to reward people who buy OHM and raise the value of the treasury, which is what the OHM is worth. In this way, the protocol makes money for everyone. 

When the base is rebased, OHM staked ensures that everyone receives the same percentage of rebasing rewards, allowing for OHM compounding yields while simply needing to stake OHM. Token compound yield is the interest rate or returns you get for holding a token or cryptocurrency.

OHM Bonding of Crypto Assets

Bonding OHM of the crypto asset will enable the decentralized lending and borrowing of any coin on the Ethereum blockchain. The DAO does this by providing liquidity for loans, which means that borrowers will always be able to draw funds for their projects, and lenders can rest assured that their assets are secure.

Back outstanding OHM tokens, increase treasury balance and build a way to become a top contributor. The reason it’s worth it is simple: Olympus provides a reasonable rate of return. A DAI-OHM liquidity provider bond owner could currently receive a 4.86% ROI.

Risk of Staking or Bonding OHM Crypto Asset

The crypto trading market is volatile, but it’s essential to be aware of the risks of holding these assets. The value of your OHM digital asset is subject to significant fluctuations that are not related to its underlying value.

It includes fluctuations based on market cap forces, changes in its perceived future business prospects, or changes in investor perception of its utility.

OHM is the first DAO to be an organization indeed. It has a clear governance structure, a protocol-owned liquidity hub, a bonding mechanism to incentivize staking rewards, and a rebasing rewards program.

Olympus DAO consists of inventory, profit, and a bonding mechanism designed to control supply expansion at a high level.

Bond sales generate profit for the protocol. The treasury-backed currency uses the profit to mint rewards for stakes. The protocol can accumulate liquidity with liquidity bonds, staking a digital asset to earn additional tokens compound yields.

Blockchain technology offers an incredible opportunity for an investor to achieve significant returns. But we suggest you stake OHM only a small percentage of your available assets to mitigate this risk. Before taking any digital Asset, you should understand the following risks. 

Furthermore, consider whether staking or bonding is appropriate considering your financial status, investment experience, and other relevant circumstances.

What Network is Currently Used by OHM?

The OHM is currently built on the Ethereum network. This means that OHM is an ERC-20 coin. To use the OHM network, you’ll need a wallet, a software program that stores your public and private keys and allows you to send and receive cryptocurrency.

If an investor wants to buy into a new asset, the first thing he will look at is the network. The OHM is currently supporting the Ethereum blockchain. You can buy tokens at UniSwapV2 and SushiSwap.

Ether is a decentralized network that is not controlled by a central authority, which means that no one can control or manipulate the network. It makes Ethereum a secure and reliable platform for storing value.

The network stores information about every transaction made on the blockchain, making it easy to see what has already happened and who owns what. It makes it nearly impossible for anyone to cheat or copy transactions without being noticed immediately.

Where to Trade an OHM token?

It’s not surprising that OHM is gaining momentum in the crypto news. Olympus is a decentralized autonomous organization that allows you to trade tokens for fiat currency. Its primary purpose is to facilitate the creation of new digital currency and provide an easy way for you to acquire them.

There are different options you can go about it. If you want to trade OHM for another cryptocurrency, such as Bitcoin or Ethereum, here are the best places to make that exchange.

ETORO 

ETORO is a popular digital currency trading platform available for crypto investors. This platform is a global network, with over 6 million registered users in over 170 countries. 

You can trade more than 1,000 cryptocurrencies, including OHM. They also allow you to share your personal trading experiences, being a source of inspiration and knowledge to others.

Coinbase 

To sell your DAO, you’ll need to first transfer it from your Coinbase account to an exchange where DAO can be traded. Navigate through Coinbase to the send and receive page. You can find your DAO wallet by selecting ETH on the left-hand side of the screen and clicking ETH Wallet. 

After that, click “Send,” which will prompt you to enter the amount of DAO you’d like to transfer as well as the address of the exchange where you plan to trade it.

GEMINI 

Customers can trade and earn more than 30 cryptocurrencies through Gemini, a digital currency exchange, and custodian. Customers can instantly buy and sell cryptocurrency and store it in hot and cold wallets.

To access the trading page, go to your account’s “Trade” section and click “DAO,” then select the pair you want to trade and place your order.

If you want to be entirely sure about the security of various exchanges, take a look at their website and check who’s behind them.

OHM Crypto Wallet

With the rise of Defi protocols, many people have been migrating their digital money to the Ethereum network. The recent increase in gas fees has affected many investors and led to a higher barrier for new users who incur high costs to manage their cryptos.

A wallet is the best way to manage and protect your OHM tokens from hackers, malware, and other security breaches.

Ledger ( Hardware Wallet)

It is hardware wallets that offer an extra security service to digital investments. Ledger offers two versions of wallet, the Ledger Nano S and the Ledger Nano X. If you are new to trading, then the Ledger Nano S is a good starting point. 

The Nano X is for individuals with more experience and provides functionality for those who wish to trade cryptocurrency.

Coinbase (Software Wallet)

One of the most valuable and adaptable software wallets available, Coinbase Wallet is suitable for various uses. This wallet is a good choice for beginning in cryptocurrencies who want to get into the Defi space. The user directly owns all digital-currency holdings, whereas Coinbase holds all funds on its leading exchange.

Final Thoughts

It is crucial to understand the difference and the meaning of staking in cryptocurrency and traditional asset management. This can help create a clear picture of the benefits and risks associated with the OHM model.

The increased liquidity that OHM provides is an increase in volume and price, which will likely be realized at some point. This is through Olympus’ expert blend of investment opportunities on their specialized trading platforms and digital wallet software.

Overall, joining an OHM program seems like an excellent way to start staking coins and furthering one’s cryptocurrency education.

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