OHM

Olympus maintains price stability through its Range Bound Stability (RBS) system, which programmatically executes market operations to absorb volatility. When OHM's price trends downward, treasury reserves are deployed to support the price. During upward trends, OHM is sold for reserves to stabilize the price. Unlike stablecoins, OHM isn't pegged to any fiat currency but operates within a transparently defined price range backed by a diversified treasury exceeding $200M in assets. This 'flatcoin' model combines stability mechanisms with decentralization.

Staking OHM converts it to sOHM at a 1:1 ratio while enabling auto-compounding rewards through rebasing mechanics. Each epoch (approximately 8 hours), the sOHM balance automatically increases based on current APY, eliminating manual claiming. Staked positions remain liquid and can be used as collateral in DeFi protocols like Rari Capital's Fuse pools. The staking mechanism is governed by smart contracts audited by security partners like Hypernative, which provide real-time monitoring for exploits.

Olympus employs a multi-layered security approach: Smart contracts follow modular architecture with role-based permissions limiting critical functions. Partnerships with firms like Hypernative provide 24/7 monitoring for vulnerabilities including price manipulation and reentrancy attacks. The governance system uses deltaVotes to prevent proposal spamming and ensure sufficient deliberation. Treasury assets are diversified across chains and protocols, with contingency plans for exploit scenarios documented in OIP-179. Regular audits and bug bounties complement these measures.

Olympus uses Parthenon governance featuring fully on-chain voting with unique deltaVotes calculation. Instead of simple majority rules, proposals pass based on the margin between yes/no votes relative to circulating voting supply. The system requires a 33% deltaVotes threshold initially, preventing whale domination. Leadership is distributed across a 7-member council with veto power against unilateral decisions. Governance actions execute autonomously without multisig dependencies, and proposals undergo community feedback phases before on-chain ratification.

Unlike algorithmic stablecoins that maintain pegs through arbitrage incentives, Olympus uses treasury-backed assets and RBS for range-bound stability without peg dependencies. Its $200M+ treasury provides tangible backing, while POL ensures liquidity independent of external incentives. OHM's value accrual comes from treasury growth rather than ponzi-style tokenomics, and Cooler Loans enable direct borrowing against treasury assets. Security emphasis includes Hypernative's exploit prevention and documented incident response plans absent in failed algorithmic projects.