Olympus DAO, a decentralized autonomous organization (DAO) aiming to create a sustainable and decentralized reserve currency, has decided to buy more Ethereum (ETH) for its treasury.
Ratio of Volatile Assets Like Ethereum Supporting OHM Token Will Increase
The decision was made through a management proposal that had great support from Olympus (OHM) token holders.
Olympus will increase the amount of "volatile assets" such as ETH in its treasury that supports the OHM token. The vote was passed almost unanimously at noon on Friday.
According to the Olympus DAO website, the treasury currently holds over $237 million in assets, including DAI, FRAX, LUSD, sUSD, alUSD, and OHM-DAI LP tokens.
The Treasury also earns revenue from staking rewards and protocol fees. The proposal argued that adding ETH to the treasury would diversify its portfolio and increase its exposure to the growth of the Ethereum ecosystem.
“We aim for 75% stablecoins and 25% directed risk,” said an analyst from the Olympus treasury team, using the pseudonym Relwyn. This represents a change from Olympus' 79%-21% distribution, which includes $200 million stablecoin treasury, volatile assets, and protocol-owned liquidity.
This change will give Olympus greater exposure to ETH, the largest "volatile asset" in the reserve treasury, which supports OHM at $8.4 million as of Friday.
Among the assets backing the OHM altcoin, the stablecoin DAI plays a big role, and $80 million of the treasury consists of DAI coins.
*Not investment advice.
